PSO reports around 46% profit decline to Rs8bn for H1FY25

February 13, 2025 (MLN): Pakistan State Oil Company Limited (PSX: PSO) has reported its financial results for the six months ended December 31, 2024, reporting a profit of Rs8 billion, around a 45.5% decline compared to Rs14.77bn in the same period last year.

The decline in profitability is attributed to a drop in net sales, reduced gross profit, and higher tax expenses, despite some relief from lower finance costs.

During the period, net sales stood at Rs1.718 trillion, reflecting a 10.83% decrease from the previous year’s Rs1.928tr.

The company’s gross profit also dropped by 24.73% to Rs52.08bn, as the cost of products sold declined but at a slower pace than revenue.

Similarly, profit from operations fell by 30% to Rs44.78bn, impacted by higher administrative and distribution expenses.

Finance costs decreased by 22.88% to Rs21.08bn, providing some financial relief.

However, taxation remained a major burden, with total tax expenses reaching Rs9.18bn, despite a 46.07% decline from the previous year.

The company also faced a 25% increase in the minimum tax differential and a 114.48% jump in final taxes, further squeezing net profitability.

As a result of these financial challenges, earnings per share (EPS) dropped to Rs19.48 from Rs26.01, reflecting the overall decline in profitability.

The company’s share of profit from associates also saw a 16.22% reduction, adding to the downward trend in earnings.

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