Pakistan State Oil Company Limited (PSO) announced its financial result for 1HFY19 whereby the company declared a Profit After Tax (PAT) of PKR 4.2bn (EPS: PKR 10.86) compared to PKR 8.5bn (EPS: PKR 21.78) in 1HFY18, depicting a decline of 50% YoY. On a sequential basis, earnings clocked-in at PKR 68mn (EPS: PKR 0.17), down by 98% YoY and 98% QoQ.
Topline of the company settled at PKR 292bn for 2QFY19, up by 12% YoY, given higher prices of products. During 2QFY19, volumes of FO, HSD and MoGas dropped by 75%, 36% and 14% YoY, respectively.
The company posted a gross profit of PKR 5.1bn with gross margins set at 1.74% in 2QFY19 compared to 3.67% in the prior year. We view noteworthy changes in ex-refinery prices that resulted in inventory loss of more than PKR 3.0bn.
Other operating income increased by 122% YoY / 73% QoQ to PKR 1,680mn. We reckon that increase in other income is on the back of company recording markup on delayed payments in the period under review.
Meanwhile, increase in finance costs by 98% YoY to PKR 2,029mn is owing to higher reliance on borrowing to meet working capital requirements.
The company booked effective taxation at 89% in contrast to 38% in 2QFY18.