Pakistan State Oil Company Limited (PSO) has announced its financial result for the financial year that ended on June 30th, 2023.
Despite facing galloping inflation, sluggish market growth, a volatile currency, and a turbulent geo-political environment, the company posted a profit after tax (PAT) of Rs. 9.8 billion, down by 89.7 percent year-on-year (YoY) compared to Rs. 95.7 billion in FY22.
Along with the result, the company announced a final cash dividend for the financial year ended June 30, 2023, at the rate of Rs. 7.5 per share i.e., 75 percent.
Net sales of the company arrived at Rs. 3,539 billion in FY23, up 39 percent YoY given the higher average selling prices of petroleum products, according to Arif Habib Limited (AHL). However, volumetric sales of MS, HSD, and FO declined by 17 percent, 25 percent, and 64 percent YoY, respectively.
PSO continued to increase market share across key portfolios, especially in white oil, where the company increased its participation by 1.8 precent to reach at 51 percent of the industry volume. Notwithstanding the country’s modest motor gasoline sales, PSO managed to increase its market share to 44.4 percent.
Against the industry decline of 29 percent in diesel consumption, PSO managed to sell 3.4 million tons during the year, an increase of 2.8 percent market share over the previous year.
Building on its leadership position in the jet fuel segment, PSO posted the highest record market share of 98 percent.
Owing to a decrease in furnace oil demand from the power sector, the black oil industry witnessed a decline of 45 percent, while PSO managed to sell 1.1 million tons during the period. Amidst industry decline, the company continued to make forward strides in the lubricant segment, increasing its market share to 25.2 percent.
Making headway in gaseous fuels, PSO expanded its LPG business with the launch of the cylinder exchange facility at its retail outlets, registering an exceptional sales volume of 40.3 thousand tons and a growth of 9 percent.
The Board of Management raised concerns over the company’s circular debt crisis. The matter is being actively pursued with the concerned authorities for settlement, said a statement issued by the company.
The company posted a gross profit of Rs. 84.4 billion with gross margin compressing to 2.38 percent in FY23 owing to inventory losses during the period. Other income went down by 34 percent YoY in FY23 to Rs. 16.8 billion compared to Rs. 25.3 billion in FY22.
Operating costs decreased 28 percent to Rs. 26.9 billion in FY23, as compared to Rs. 37.6 billion in FY22. The finance costs surged by 628 percent YoY to Rs. 43.4 billion in FY23 compared to Rs. 5.96 billion in the same period last year. The company paid Rs. 20.1 billion in taxes in FY23, down 69 percent from Rs. 64.8 billion paid in the previous year.
PSO recorded earnings per share (EPS) of Rs. 19.85 for FY23, compared to an EPS of 194.35 in the corresponding period last year.
PSO’s scrip at the bourse was closed at Rs. 122.95, up 1.48 percent or Rs. 1.79 with a turnover of 6.7 million shares on Wednesday.
Source: Pro Pakistani