October 28, 2022 (MLN): The profitability of Pakistan State Oil (PSX: PSO) during 1QFY23 plunged by 81.4% YoY to stand at Rs2.15 billion [EPS: Rs3.72], compared to Rs11.53bn [EPS: Rs24.93] in the same period last year, the company filing on PSX showed today.
The notable contraction in the bottom line is attributable to inventory losses booked by the company.
The net sales of the company increased by 92% YoY to stand at Rs900bn on the back of a jump in prices of petroleum products while the cost of sales surged by 2x YoY which dented the company’s gross margin to 0.9% from 4.77% in 1QFY22.
During the period under review, the other positive highlight includes the other income that jumped by 2.38x YoY to Rs10.76bn on account of the late payment surcharge.
Meanwhile, the finance cost of the company moved up by 5x YoY to Rs5.43bn on the back of an increase in interest rates and an increase in short-term borrowings.
On the taxation front, the company paid Rs3bn in 1QFY23, compared to Rs5.96bn in the corresponding period last year.
