PSO Outperforms Market by Reporting Rs. 5.1 Billion in Profits

Pakistan State Oil (PSO), the state-owned petroleum corporation announced its financial results for the quarter ended September 30, 2020.

The company has reported an increase of 46% in the net profit after tax to Rs. 5.1 billion for the quarter ended September 30, 2020 (Q1FY21) as compared with Rs. 3.5 billion during the same period last year.

Despite the serious challenges faced by the economic and business world amid the COVID-19 outbreak, PSO delivered solid organic growth and improved margins in the first quarter. The Board has confirmed PSO’s profitability and performance, said the released statement by PSO.

The net sales of the company were reported at Rs. 280.76 billion, down by 15% as compared to Rs. 329.78 billion in the same period last year. Similarly, the cost of products sold was down 15% to Rs. 269.26 billion from Rs. 319.07 billion.

The company witnessed a growth of 11.8% in motor gasoline, 17.1% in high-speed diesel (HSD), 7.7% in white oil, 37.8% in black oil and 13.9% in liquid fuels resulting in a market share of 42.1% in motor gasoline (an increase of 1.2% vs. last year), 48.0% in high-speed diesel (an increase of 2.5% vs. last year), 45.5% in white oil (an increase of 0.4% vs. last year), 56.8% in black oil (an increase of 2.8% vs. last year) and 47.9% in liquid fuels (an increase of 1.2% vs. last year).

PSO also launched Euro 5 Hi-Octane 97 and Altron Premium Euro 5 (92 Ron) during the months of August and September 2020. Plans are underway for the launch of Euro 5 compliant HSD. These products were launched by the company under their environment-friendly initiatives.

During the period under review, the company’s product sourcing comprised of 40% upliftment of refinery production (44%: Q1FY20) and 58% of industry imports (54%: Q1FY20). A strong focus was maintained on infrastructural projects including the 203 KMTs of new storages, 176 KMTs of rehabilitated storages and 47.3 Km of pipeline projects.

PSO successfully reduced its finance cost through effective planning and cash flow management which was further supported by a reduction in average policy rates.

The finance cost of the company was decreased by 67.62% to Rs. 858 million as compared to Rs. 2.65 billion. Earnings per share of the company was reported at Rs. 10.96 as compared to Rs. 7.52.

Receivables from the power sector reduced by Rs. 2.3 billion during the first quarter of FY2021, but the receivables from Sui Northern Gas Pipelines Limited (SNGPL) remained an area of concern. As of September 30, 2020, the Company’s receivables from SNGPL stood at Rs. 68.1 billion.

The management is rigorously following-up with concerned authorities for the early settlement of outstanding receivables, the company’s statement said.

PSO’s share at the bourse was closed at Rs. 206.09, down by Rs. 6.96 or 3.27%, with a turnover of 5.50 million shares on Tuesday.

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