February 18, 2021 (MLN): Pakistan State Oil Company has announced its financial results for 1HFY21, wherein the bottom line of the company increased significantly by 2.13x to clock in at Rs 9.25 billion compared to Rs 4.34 billion in the same period last year.
This reflected in the company’s earnings per share which jumped by 75% YoY from Rs 11.36/sh to Rs 19.93/sh.
In conjunction with the results, PSO also announced a cash dividend of Rs 5 per share, equivalent to 50% for the financial year ending June 30, 2021.
Despite the increase in volumetric sales, the company witnessed 11.83% in net sales due to lower petroleum product prices which offset the impact of growth in overall volumes by 11% YoY, while the cost of sales also declined by 12.82% YoY. As a result of a drop in the cost of sales by a greater proportion, its gross margin improved from 3% to 4% during the period under consideration.
Furthermore, the other income of the company plunged by 41.5% YoY, on the back of lower markup on delayed payments in the period under review, a report by Arif Habib Limited said.
The deviation company’s earnings further came from financial charges which shrank notably by 72% YoY from Rs 7.4 billion to Rs 2 billion largely owing to lower reliance on borrowings and decline in interest rates,
On the tax front, the company recorded effective taxation at 35% during 1HFY21 compared to 53% in the same period last year.
Consolidated Statement of Profit or Loss for the half-year ended December 31, 2020 ('000 Rupees) |
|||
|
Dec-20 |
Dec-19 |
% Change |
Net Sales |
580,984,605 |
658,957,141 |
-11.83% |
Cost of products sold |
(559,601,242) |
(641,920,289) |
-12.82% |
Gross Profit |
21,383,363 |
17,036,852 |
25.51% |
Other income |
4,524,854 |
7,741,839 |
-41.55% |
Operating cost |
|
|
|
Distribution & marketing expenses |
(5,910,580) |
(5,952,209) |
-0.70% |
Administrative cost |
(1,722,011) |
(1,701,733) |
1.19% |
Reversal/(provision) for impairment on financial assets-net |
(1,224,957) |
173,362 |
– |
Other expenses |
(1,067,210) |
(915,825) |
16.53% |
|
(9,924,758) |
(8,396,405) |
18.20% |
Profit from operations |
15,983,459 |
16,382,286 |
-2.43% |
Finance costs |
(2,086,535) |
(7,456,782) |
-72.02% |
Share of profit of associates – net of tax |
290,411 |
313,960 |
-7.50% |
(Loss)/Profit before taxation |
14,187,335 |
9,239,464 |
53.55% |
Taxation |
(4,929,418) |
(4,895,848) |
0.69% |
(Loss)/Profit afor the year |
9,257,917 |
4,343,616 |
113.14% |
(Loss)/Earnings per share – basic and diluted (Rupees) |
19.93 |
11.36 |
75.44% |
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