PSO Posts Rs. 7.8 Billion Profit in First Half of FY24

Pakistan State Oil Company Limited (PSO) announced its financial result for 1HFY24 posting a profit after tax (PAT) of Rs. 7.75 billion compared to a loss of Rs. 3.36 billion in the same period last year.

On a quarterly basis, the company booked a loss of Rs. 14.13 billion in 2QFY24 against a loss of Rs. 4.55 billion in 2QFY23. According to Arif Habib Limited, this was due to higher inventory loss during the quarter coupled with higher finance costs.

Net sales of the company arrived at Rs. 1.827 billion in 1HFY24, up by 7 percent YoY given higher average selling prices of petroleum products. However, the sales volume of petroleum products reduced by 17 percent YoY (MS, HSD, and FO down by 1 percent, 6 percent, and 86 percent YoY, respectively). Whereas, the topline in 2QFY24 climbed up by 8 percent YoY due to an uptick in overall volumes by 6 percent YoY on the back of 23 percent growth in HSD sales.

The gross profit margin in 1HFY24 arrived at 3.2 percent vis-à-vis 0.68 percent in SPLY amid inventory gains during the period. During 2QFY24, the company posted a gross loss of Rs. 3.2 billion compared to a gross profit of Rs. 4.8 billion in 2QFY23 owed to inventory losses of -Rs. 24 billion during the quarter.

Other income increased by 16 percent YoY in 1HFY24 to Rs. 11.1 billion in contrast to Rs. 9.6 billion in 1HFY23. Whereas, in 2QFY24, the other income swelled up by 2x YoY arriving at Rs. 7.8 billion given the higher interest received on delayed payments.

The finance costs surged by 2x YoY to Rs. 25.3 billion in 1HFY24 given higher short-term borrowings. Similarly, the finance cost climbed up by 97 percent YoY in 2QFY24 owed to the aforementioned reason.

The company booked a tax reversal of Rs. 2.2 billion in 2QFY24 compared to taxation of Rs. 4.6 billion in SPLY. PSO posted a loss per share of Rs. Rs. 30.12 for 2QFY24 and earnings per share of Rs. 16.51 for 1HFY24.