Pakistan State Oil (PSO) released its 1QFY22 financial result showing a consolidated profit after tax of Rs11.54 billion, an increase of a whopping 2.21x YoY in comparison to the net profit of Rs5.23bn earned during the same period last year.

The remarkable increase in profitability was due to robust growth in sales volume and larger inventory gains.

In accordance with the financial statement provided to the Pakistan Stock Exchange (PSX), the net sales of the company spiked by 64% YoY alongside a 34% YoY growth in volumes as economic growth hastens and 70% YoY higher international average oil prices. As a consequence, the gross margins jumped by 0.51ppt touching 4.78% in the first quarter of the current fiscal year.

Research Analyst at Arif Habib Arsalan Hanif said that the changes in ex-refinery prices led to inventory gains of Rs7bn in 1QFY22 in comparison to inventory gains of Rs1.5bn during the corresponding period last year.

The other income increased by nearly 48% YoY reaching Rs1.80bn in 1QFY22, enhancing the financial health of PSO.

In terms of the costs, PSO’s admin and distribution, as well as marketing expenses, jumped up by 18% and 20.4% YoY respectively, while other expenses rose by 2.53 times YoY during the period under review.

The provision costs for impairment on financial assets dropped by 55% YoY to Rs216mn, supporting its bottom-line. The company saw its finance costs dropping by 7.70% YoY to Rs1.08bn on account of lesser reliance on short-term borrowings as well as a lower interest rate environment.

The company also recorded effective taxation at 34% in 1QFY22 against 33.6% in 1QFY21.

The story was filed by the News Desk.
The Desk can be reached at info@thecorrespondent.com.pk.

The story was filed by the News Desk. The Desk can be reached at info@thecorrespondent.com.pk.

LEAVE A REPLY

Please enter your comment!
Please enter your name here