PSO reports Rs 14.76 billion loss in FY20 due to hefty inventory loss

MG News | September 01, 2020 at 11:29 AM GMT+05:00

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September 1, 2020 (MLN): Pakistan State Oil Limited (PSO) has announced its financial results for FY20 whereby the company has reported a loss after tax of Rs 14.76 billion against a net profit of Rs 15 billion in FY19.

This has translated into a loss per share which clocked in at Rs 23.47 against the earnings per share of Rs 30.46 in the aforementioned period.

According to the financial results issued to PSX, the company incurred losses during the FY20 on an account of a hefty inventory loss amid a substantial decline in oil prices, significant exchange losses amid lower FE-25 borrowings, and lower offtake from local refineries along with a decline in FO sales.

In FY20, the topline of the company witnessed a decrease of 5.43% YoY due to a decline in volumetric sales and POL’ product prices, resulting in a decline in gross profits by 79% to Rs 6.92 billion.

According to the research by Arif Habib Limited, the company registered inventory losses of Rs 20.7 billion during FY20.

During the period under review, the other income plunged by 39% YoY to Rs 10.38 billion on the back of the company's lower markup on delayed payments, the research added.

The finance cost soared by 55% YoY, from Rs 9.95 billion to Rs 15.39 billion due to a rise in borrowings, resulting in a weakening bottom-line.

On the other hand, the tax expenses plunged by 76% YoY to Rs 1.67 billion compared to the same period of last year which supported the financial performance of the company.

Consolidated Statement of Profit or Loss for the year ended June 30, 2020 ('000 Rupees)
	Jun-20	Jun-19	% Change
Net Sales	1,121,161,417	1,185,484,132	-5.43%
Cost of products sold	(1,114,241,883)	(1,152,674,631)	-3.33%
Gross Profit	6,919,534	32,809,501	-78.91%
Other income	10,385,641	16,922,354	-38.63%
Operating cost
Distribution & marketing expenses	(11,771,399)	(10,414,831)	13.03%
Administrative cost	(3,682,218)	(2,900,105)	26.97%
Reversal/(provision) for impairment on financial assets-net	169,215	(306,373)	-
Other expenses	(257,473)	(4,377,571)	-94.12%
	(15,541,875)	(17,998,880)	-13.65%
Profit from operations	1,763,300	31,732,975	-94.44%
Finance costs	(15,393,332)	(9,955,428)	54.62%
Share of profit of associates - net of tax	546,931	199,922	173.57%
(Loss)/Profit before taxation	(13,083,101)	21,977,469	-
Taxation	(1,679,384)	(6,870,536)	-75.56%
(Loss)/Profit for the year	(14,762,485)	15,106,933	-
(Loss)/Earnings per share - basic and diluted (Rupees)	(23.47)	30.46	-

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