KARACHI: Pakistan State Oil’s profit after tax plunged 50 per cent to Rs4.249 billion for first half (July-December) of 2018-19 from Rs8.522bn in the same period last year.

Gross sales, however, increased by 1.42pc to Rs662.726bn during the period under review.

“The challenging economic trend fuelled by rupee devaluation and adverse balance of payments position resulted in negative growth of 27pc in the cumulative liquid fuel market with negative contribution of white oil and black oil of 12pc and 60pc respectively,” the company said on Monday.

The decline in profitability is mainly attributable to a 10.47pc increase in cost of goods sold, followed by a 7pc rise in operating costs and a mammoth 117pc jump in the total finance costs incurred during the period under review.

“Major reasons for reduction in profit as compared to same period last year are lower gross profit mainly due to dip in sales volume of black and white oil, higher inventory loss due to reduction in international oil prices, increase in finance cost due to sharp hike in discount rate by the State Bank of Pakistan and higher average borrowing levels vs same period last year, lower interest income from power sector and foreign exchange loss on account of rupee devaluation,” explained the press release.

Published in Dawn, February 19th, 2019