PSO profit plummets 82% in third quarter

October 25, 2024 (MLN): Pakistan State Oil Company Limited (PSX: PSO) recorded a decrease of 81.9% YoY in its profitability, clocking in its profit after tax at Rs3.97 billion [EPS: Rs33.03], compared to a profit of Rs21.89bn [EPS: Rs21.35] in the same period last year (SPLY).

Going by the results, the company's top line decreased 14.4% to Rs787.59bn as compared to Rs920.08bn in SPLY.

The cost of sales fell by 11.6% but was higher than proportionate to sales decline, which worsened the gross profit by 56% to Rs25.74bn in Q3 CY24.

Accordingly, the gross margins worsened to 3.3% as compared to 6.4% in SPLY.

During the period under review, other income stopped 3% to stand at Rs254.76m in Q3 CY24 as compared to Rs441.3m in SPLY.

Likewise, the share of profit of associates was down 42.27% in the third quarter.

On the expense side, the company's administration expenses rose 28.9% YoY to Rs1.66bn, while distribution and selling expenses increased 10.4% YoY to Rs4.44bn.

Conversely, other operating expenses fell 72.5% YoY to Rs891.44m.

The company’s finance cost expanded by 1.4% and stood at Rs10.42bn as compared to Rs10.28bn in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a lower tax worth Rs7.74bn against the Rs20.97bn paid in the corresponding period of last year, depicting a fall of 63.1%.

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