KARACHI: The bottom line of Pakistan State Oil (PSO) turned negative in the last quarter of 2022-23 as its unconsolidated loss amounted to Rs4.6 billion versus a three-month profit of Rs21.4bn a year ago.
In the preceding quarter of January-March, the state-owned oil marketing company recorded a net profit of Rs13.6bn. As a result, PSO’s earnings totaled Rs5.6bn in 2022-23, down 93.4pc from the preceding fiscal year, the company told investors on Wednesday.
The company also announced a final cash dividend of Rs7.50 per share. According to AKD Securities, the result was slightly higher than its expectations wherein major deviations occurred owing to higher operational expenses and finance costs during the April-June quarter.
“Furthermore, inventory losses are estimated to have clocked in at Rs3.48bn as ex-refinery prices for petrol/diesel fell by 10pc/16pc during the period,” it said, adding that gross margins for the quarter settled at 1.9pc versus 5.7pc in the preceding three-month period.
The company’s revenue stood at Rs874bn, up 8pc on a quarterly basis even though total offtakes of petroleum products went down 1pc to 1.8 million tonnes.
Another factor that hurt profitability was a rising finance cost, which clocked in at Rs15.2bn, up 6.5 times on an annual basis. The situation became worse because of escalating interest rates during the last fiscal year.
In a press statement released on Wednesday, PSO said it increased its market share in key portfolios, especially white oil, in 2022-23. In volume terms, PSO’s share stands at 51pc.
“Notwithstanding the country’s modest motor gasoline sales, PSO managed to increase its market share to 44.4pc. Against the industry decline of 29pc in diesel consumption, PSO managed to sell 3.4m tonnes during the year, an increase of 2.8pc market share over the previous year,” it said. Its share in the jet fuel segment remained 98pc.
Meanwhile, Bank AL Habib Ltd reported an unconsolidated profit of Rs7.5bn in April-June, up 61.7pc from a year ago.
The bank also announced an interim cash dividend of Rs4.50 per share along with the result.
Separately, JS Bank Ltd told investors its unconsolidated income for April-June clocked in at Rs651.6m, up 40.9 times from a year ago.
Published in Dawn, August 24th, 2023
