KARACHI, April 28: Pakistan State Oil (PSO) announced on Thursday financial results for the nine months period (July-March 2004-05), posting profit after tax (PAT) at Rs4.3 billion. The PAT was up by 43 per cent over Rs3.0 billion earned in the corresponding period of the previous year.

The board declared cash dividend at Rs5 per share, which together with the earlier interim half-yearly dividend of Rs11, made a total of Rs16 per share for the nine months.

The stock market, which had been waiting for the PSO results all through the day, saw the Oil Marketing Company’s (OMC’s) share drop by Rs9 to close at Rs366.50, from the opening price of Rs375.50 with trading seen in 11.8 million shares. Analysts nonetheless thought that to be in line with the general bearish trend in the market on Thursday, for the earnings and dividend were nearly about the same as forecast by most analysts.

The statement issued by the PSO Board on Thursday noted that the company had sold around 7.4 million tons of POL products translating into sales revenue of Rs183 billion. Sales volume was said to have increased by 24 per cent over the same period last year. Sales volume of White Oil increased by 4 per cent and Black Oil by 69 per cent versus last year. Mogas and HSD volumes grew by 9 and 5 per cent.

Sector analysts at BMA Capital Management observed that investors were given a taste of what to expect when the country’s second OMC Shell, announced its high earnings last week. “The quarter has been very good for the majority of oil companies locally and internationally with Exxon Mobil and Royal Dutch Shell having just announced quarterly results showing growth of 44 and 28 per cent respectively”, said the analysts.

In a pre-result review, analysts at Taurus Securities stated that the dominant reason for a high profit could be inventory gains realized during the third quarter. On average, Saudi Light Crude’s price remained around 15 per cent higher in 3QFY05 as compared to 2QFY05.