PSO's half yearly profits decline by half due to lower sale and higher costs

MG News | February 18, 2019 at 10:06 AM GMT+05:00

Add Mettisglobal as a Trusted Source on Google

0:00

February 18, 2019 (MLN): Pakistan State Oil (PSO) has announced a 50% decline in half yearly profits for the period ended with December 2018 as its earnings stand at Rs.4.2 billion (EPS: Rs.10.86), down from Rs.8.5 billion recorded same period last year.

The drop in profitability during the first half of fiscal year 2019 (FY19) has exceeded the market's expectation of a 36% decline. In the face of tough competition from other oil marketing companies, the sales of furnace oil, MS and High-speed Diesel (HSD) slipped noticeably, resulting in merely 1 percent increase on the company’s topline (Rs.662.7 billion).

However, since sales tax and IFEM registered considerable declines (-31%), the net revenue (Rs.572.5 billion) turned out to be 9.6% higher than that recorded last year (Rs.522.5 billion), although after accounting for cost of sales (Rs.556.5 billion) the company’s gross profits (Rs.15.9 billion) shrunk by 14.5%.

Adding to this, PSO’s finance cost (Rs.3.9 billion) grew substantially (by 2 billion) in light of higher borrowings to meet the working capital requirements, leading to a 45% decline in pre-tax profits (Rs.7 billion).

Financial Results for the half year ended December 31, 2018 ('000 Rupees)
	Dec-18	Dec-17	% Change
Gross sales	662,726,817	653,440,150	1.42%
Sales tax and IFEM	(90,183,587)	(130,948,737)	-31.13%
Net Sales	572,543,230	522,491,413	9.58%
Cost of products sold	(556,546,780)	(503,791,356)	10.47%
Gross Profit	15,996,450	18,700,057	-14.46%
Other income	2,650,049	2,969,337	-10.75%
Operating cost	(7,532,264)	(7,020,543)	7.29%
Profit from operations	11,114,235	14,648,851	-24.13%
Finance costs	(3,855,407)	(1,779,242)	116.69%
Share of (loss)/profit of associates - net of tax	(65,309)	210,554
Profit before taxation	7,193,519	13,080,163	-45.00%
Taxation	(2,944,474)	(4,558,102)	-35.40%
Profit after taxation	4,249,045	8,522,061	-50.14%
Earnings per share - basic and diluted (Rupees)	10.86	21.78	-50.14%

Copyright Mettis Link News

Related News

Name	Price/Vol	%Chg/NChg
KSE100	166,498.84 185.04M	-0.57% -952.30
ALLSHR	100,481.40 703.99M	-0.51% -519.61
KSE30	49,764.01 68.59M	-0.64% -319.08
KMI30	240,340.56 94.21M	-0.36% -880.32
KMIALLSHR	65,599.63 389.80M	-0.33% -217.28
BKTi	45,136.63 31.52M	-1.09% -499.60
OGTi	35,252.30 4.64M	-0.58% -205.48

Symbol	Bid/Ask	High/Low

Name	Last	High/Low	Chg/%Chg
BITCOIN FUTURES	81,755.00	81,875.00 78,985.00	2010.00 2.52%
BRENT CRUDE	105.26	107.13 103.88	-0.37 -0.35%
RICHARDS BAY COAL MONTHLY	110.00	0.00 0.00	-6.70 -5.74%
ROTTERDAM COAL MONTHLY	108.25	108.25 107.25	0.00 0.00%
USD RBD PALM OLEIN	1,191.50	1,191.50 1,191.50	0.00 0.00%
CRUDE OIL - WTI	100.99	102.35 99.39	-0.03 -0.03%
SUGAR #11 WORLD	14.99	15.42 14.92	-0.39 -2.54%