KARACHI, Aug 9: Pakistan State Oil announced profit after tax at Rs9.1 billion, translating into earning per share (eps) at Rs52.80 for the year ended June 30, 2012.
The earnings were down 39 per cent over the earlier year's Rs14.8 billion (eps: Rs86.17), but above the analysts’ consensus expectations; most had forecast a bleaker bottom line.
The board which met on Thursday also announced a final cash dividend at Rs2.50 per share, taking cumulative dividend in FY12 to Rs5.50 per share.
Alongside cash dividend, PSO also announced a bonus issue at 20 per cent, which was quite a pleasant surprise for the market.
Investors greeted the results and payout with an increase of Rs8.54 in the stock price, which climbed to Rs250.31.
A statement released by PSO took pride on becoming the first national trillion rupee company; the company's revenuesexceeded Rs1,199 billion in the latest year, compared to Rs975 billion in FY11, representing a growth of 23pc.
PSO stated: "The profitability was severely impacted by rapid devaluation of Pak rupee along with the reduction in inventory gains."
The losses were said to have been absorbed by improvement in margins of Furnace Oil and HSD along with the recovery of financial income from the power sector.
The company also noted that the earnings in FY 12 were lower as compared to the year earlier, due to a deferred tax adjustment made in the previous year amounting to Rs2.29 billion which had resulted from the reinstatement of the rate of turnover tax bythe tax authorities.
"Further, the financial cost resulting from the accumulation of highest ever receivables continues to constrain both profitability and liquidity of PSO," the company stated.
It said that the industry’s volumes for Black Oil during the year, decreased by 8 per cent, whereas, White Oil grew by 4pc reflecting an increase in PMG consumption of 22pc while a decline of 1pc was recorded in HSD demand.
"In spite of reduction in market size of HSD, PSO has been able to increase its market share from 54.9pc to 56pc," the company asserted and added that the company had also continued its overall domination of the market with its share in the Black Oil andWhite Oil segments at 78.1pc and 55.1pc respectively, thereby contributing to an overall market share of 65.4pc.
The PSO board expressed increasing concern over the rising balance of receivables which stood at Rs237 billion as on Aug 9, 2012.
"This has created an acute financial crunch on the company as it struggles to meet its international and local obligations," the board stated, adding that the situation was not sustainable and presented a significant risk to PSO’s ability to ensure availability of product.
The management was said to be in continuous pursuit of IPPs as well as the government for recovery of its outstanding receivables.