PSO’s profitability slightly up by 2.23% YoY in 1HFY20

February 18, 2020 (MLN): Pakistan State Oil Limited (PSO) has announced its financial results for the half-year ended December 31, 2019. As per the results, the company has posted its consolidated net earnings of Rs 4.34 billion (EPS: 11.36) i.e. 2.23% higher than the same period of last year.

The key reason for the company’s profitability was inventory gains during 1HFY20 against the inventory loss in the same period last year.

As per the financial statement of the company, the sales revenue went up by 15.09% YoY due to higher growth in sales volumes of MS, HSD and FO, whereas, cost of sales also increased by 15.34% YoY, thereby restricting gross profit which only increased by 6.50% YoY.

The company’s marketing & distribution expenses and Administrative cost plunged by 34.34% YoY and 32.37% YoY respectively.  

On the other hand, the other income of the company soared by 2.69 times YoY to Rs 7.12 billion during 1HFY20.

During the period under review, the finance cost surged substantially by 92.14% YoY from Rs 3.85 billion to Rs 7.40 billion when compared to the prior year owing to the higher interest rate.

PSO’s basic and diluted earnings per share have been reported at Rs 11.36 per share while those recorded last year were Rs 9.05 per share.

It may be noted here that unconsolidated results of the company arrived in line with market expectations.

Financial Results for the Half-year ended December 31, 2019 ('000 Rupees)

 

Dec-19

Dec-18

% Change

Net Sales

 658,957,141

 572,543,230

15.09%

Cost of products sold

 (641,920,289)

 (556,546,780)

15.34%

Gross Profit

 17,036,852

 15,996,450

6.50%

Other income

 7,128,897

 2,650,049

169.01%

Operating cost

 

 

 

Distribution & marketing expenses

 (5,952,209)

 (4,427,661)

34.43%

Administrative cost

 (1,701,733)

 (1,285,573)

32.37%

Other expenses

 (178,404)

 (1,819,030)

-90.19%

 

 (7,832,346)

 (7,532,264)

3.98%

Profit from operations

 16,333,403

 11,114,235

46.96%

Finance costs

 (7,407,899)

 (3,855,407)

92.14%

Share of (loss)/profit of associates – net of tax

 313,960

 (65,309)

 

Profit before taxation

 9,239,464

 7,193,519

28.44%

Taxation

 

 

 

current

 (5,437,919)

 (3,799,224)

43.13%

prior

 1,738

 143,535

-98.79%

deferred

 540,333

 711,215

-24.03%

 

 (4,895,848)

 (2,944,474)

66.27%

Profit after taxation

 4,343,616

 4,249,045

2.23%

Earnings per share – basic and diluted (Rupees)

 11.36

 9.05

25.52%

 

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Posted on: 2020-02-18T15:20:00+05:00

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