August 23, 2023 (MLN): Pakistan State Oil Company Limited (PSX: PSO) experienced a significant fall of 89.75% YoY in its profitability in FY23, clocking in its profit after tax at Rs9.82 billion [EPS: Rs19.85] compared to a profit of Rs95.72bn [EPS: Rs194.35] in the same period last year (SPLY).
Despite the fall in profitability, PSO announced huge a final cash dividend for FY23 at the rate of Rs7.5 per share i.e., 75 %.
Going by the results, the company's top line inflated by 39.24% YoY to Rs3,539.16bn as compared to Rs2,541.73bn in SPLY.
The cost of sales also rose by 46.16% YoY worsening the gross profit by 52.62% YoY to Rs84.41bn in FY23.
During the period under review, other income marked a decline of 33.74% YoY to stand at Rs16.8bn in FY23 as compared to Rs25.35bn in FY22.
On the expense side, the company observed an increase in distribution and marketing expenses by 21.34% YoY while other expenses fell by 69.44% YoY to clock in at Rs6.27bn and Rs4.52bn respectively during the review period.
The company’s finance costs surged by 7.28x YoY and stood at a staggering Rs43.41bn as compared to a mere Rs5.96bn in FY22, mainly due to higher interest rates.
On the tax front, the company paid a lower tax worth Rs20.11bn against the Rs64.84bn paid in the corresponding period of last year, depicting a fall of 68.98% YoY.
Going forward, The implementation of the Weighted Average Cost of Gas (WACOG) is expected to bring significant benefits to PSO.
Currently, PSO is experiencing cash constraints due to lower recovery on RLNG receivables by SNGPL. Implementation of WACOG will lay out proper mechanism to collect RLNG receivables by SNGPL.
The company's bottom line is being adversely affected as it relies on borrowing to finance its working capital in this higher interest rate environment
| Consolidated (un-audited) Financial Results for the year ended 30 June, 2023 (Rupees in '000) | |||
|---|---|---|---|
| June 23 | June 22 | % Change | |
| Sales | 3,539,155,107 | 2,541,730,367 | 39.24% |
| Cost of sales | (3,454,749,565) | (2,363,603,161) | 46.16% |
| Gross Profit | 84,405,542 | 178,127,206 | -52.62% |
| Distribution and Marketing expenses | (15,771,091) | (12,997,810) | 21.34% |
| Administrative expenses | (6,269,529) | (4,767,487) | 31.51% |
| Provision for impairment on financial assets – net | (437,159) | (5,104,188) | -91.44% |
| Other Income | 16,796,052 | 25,348,138 | -33.74% |
| Other expenses | (4,515,331) | (14,772,913) | -69.44% |
| Finance costs | (43,410,380) | (5,962,595) | 628.05% |
| Share of profit of associates – net of tax | (868,781) | 690,334 | – |
| Profit before taxation | 29,929,323 | 160,560,685 | -81.36% |
| Taxation | (20,113,178) | (64,838,014) | -68.98% |
| Net profit/(loss) for the period | 9,816,145 | 95,722,671 | -89.75% |
| Basic and diluted earnings/ (loss) per share | 19.85 | 194.35 | – |
Amount in thousand except for EPS
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Posted on: 2023-08-23T11:27:07+05:00
