PSO's bottom line hit by higher petroleum product prices, lower volumes

April 27, 2023 (MLN): Pakistan State Oil (PSO) reported a profit after tax of Rs10.28 billion [EPS: Rs21.91] for the nine months period ended 31 March 2023 which marked a steep decline of 84.12% YoY as compared to profit of Rs64.76bn [EPS: Rs137.96] in the same period last year (SPLY).

The gross profit dropped despite a 62.39% YoY increase in the top line to Rs2.51 trillion from Rs1.54 trillion in 9MFY22, as the cost of sales rose more than proportionately with the revenue growth.

The company witnessed a rise in top line mainly due to higher petroleum product prices, meanwhile, volumetric sales fell due to higher product prices, a slowdown in economic activity, and an influx of smuggled petroleum products.

Finance cost inflated by 9.38x YoY to Rs25.14bn in 9MFY23 mainly due to higher interest rates.

Other income also fell by 48.29% YoY to Rs11.54bn likely due to a decrease in delayed payment surcharge booked on circular debt-related payments.

On the taxation front, the company paid taxes worth Rs16.58bn, 42.14% YoY lower than the taxes paid in SPLY, which translates into an effective tax rate of 61.72% in 9MFY23 against 30.67% in SPLY.

Copyright Mettis Link News