PSO’s net profit jumps 48 percent in FY16

KARACHI: Pakistan State Oil (PSO), the country’s largest oil marketing company, on Monday reported a 50 percent increase in its net profit at Rs10.27 billion for the year ended June 30 owing to decrease in the company’s cost of sales.

The oil marketing company earned Rs6.93 billion during the previous year, said its notice issued to the Pakistan Stock Exchange.

PSO also announced a final cash dividend of Rs7.5 a share, which is in addition to already paid interim cash dividend of five rupees per share.

The company posted earnings per share (EPS) of Rs37.81 for the fiscal 2015/16 as compared to Rs25.53 EPS for 2014/15.

The result is according to market expectations. The firm’s cost of sales amounted to Rs655.10 billion in the period under review, down 26 percent as against Rs890.17 a year earlier. 

Gross profit of the PSO remained at Rs22.86 billion as against Rs22.92 billion.   Analyst Mubashir Anis Silat at Elixir Securities said gross profit was lower than the estimates because of the lowering inventory gains. 

“Inventory gains for the quarter are estimated to have clocked in at Rs600 million, which was offset by higher than estimated other income attributable to a higher quantum of penal markup income,” Silat said.

In FY16, gross sales of the company stood at Rs906.20 billion, down 19 percent from Rs1.114.41 trillion recorded during the previous year. After sales tax deduction, net sales came at Rs677.96 billion as compared to Rs913.09 billion.

Other income of the company declined to Rs12.79 billion in the period under review as compared to Rs13.93 billion a year ago.

Earnings for the last quarter clocked in at Rs20.9/share, up 48 percent year on year, relative to a loss of Rs7.8/share in the previous quarter. Similarly, the company booked a profit after tax of Rs5.7 billion in the fourth quarter of FY16 as compared to a net loss of Rs2.1 billion in the preceding year.