PSO posts twofold increase in Profits, with a cash dividend of Rs 5/sh

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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Posted on: 2021-02-18T11:20:00+05:00

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