PSO profits surge 35 percent in first quarter

KARACHI: The Pakistan State Oil (PSO), the largest oil marketing company in the country, on Monday announced a 35 percent increase in the first quarter net profits, amid an increase in sales.

In its financial results issued to the Pakistan Stock Exchange (PSX), the company reported a net profit of Rs4.37 billion for the quarter ended September 30, up against Rs11.97 billion during the same period of the previous year.

The company posted earnings per share (EPS) of Rs16.11 as compared to Rs11.97 in the same period of the last year. The result outperformed the market expectations.

During the year, gross sales of the company remained at Rs241.37 billion, up 2.2 percent from Rs236.27 billion in the previous year. After deduction of sales tax, net sales of PSO were posted at Rs193.51 billion as compared to the last year’s net sales of Rs185.27 billion.

Cost of sales was posted at Rs183.80 billion, up 3.3 percent against Rs177.81 billion last year. Thus, the gross profits of the company remained at Rs9.70 billion as compared to Rs7.45 billion last year.

The company in a statement said during the period under review, PSO maintained its market leadership position in the industry with an overall market share of 56.5 percent as opposed to 56.9 percent during the same period last year. “The market share of black oil products stood at 75.2 percent and the market share of white oil products was 42.7 percent,” the statement said.

It added that the increase in profit after tax was due to growth of 17 percent witnessed in the liquid fuel sales over the same period last year. “There was an increase of 2.9 percent in white oil sales and 31 percent in furnace oil sales over the same period last year,” the statement said. “Gaseous fuels business has shown improvement with increase in sales volume of LPG by 134 percent and LNG by 107 percent.”

The statement said the company’s board of management at a meeting reviewed the performance of the company for the first quarter of the financial year 2016-17 and also “highlighted the financial challenge the company faces due to outstanding receivables of Rs 249 billion (June 30, 2016: Rs 233 billion) from the power sector, PIA and SNGPL against supplies of FO, Aviation Fuels and Liquefied Natural Gas (LNG).”

It was learned that the management of PSO continues to work closely with Ministry of Water & Power and PIA for timely realisation of due payments against uninterrupted fuel supplies to support the power sector and airline operations, the statement said.

Mubashir Anis Silat, an analyst at Elixir Securities, said a higher gross profit is likely to be attributable to timing gains, while a lower other income is likely on account of lower-than-estimated markup income received.

Other income of the company declined to Rs1.90 billion as compared to Rs2.71 billion in the previous year. Umair Naseer at Topline Securities said that strong growth in sales volume negated any negative impact arising due to lower oil prices and supported sales of the company during the first quarter of FY17. Oil prices were down 14 percent on year-on-year basis in the quarter under review.

FFBL profits up 44pc

Fauji Fertilizer Bin Qasim Limited (FFBL) announced 44 percent rise in its quarterly net profits, amid an increase in other income.

In its condensed interim consolidated profit and loss statement to the Pakistan Stock Exchange (PSX), the company announced profits of Rs244.39 million for the quarter ended September 24, up against Rs169.31 million during the corresponding period of 2015.

Earnings per share (EPS) were posted at 26 paisas against 18 paisas. Despite an increase in sales, the surge in the cost of production resulted in decline of profit margins. During the period under review, net sales of the company rose 50 percent to Rs10.56 billion as compared to Rs7.05 billion during the same quarter a year ago.

However, 82 percent increase in the cost of sales to Rs9.93 billion from Rs5.46 billion reduced the profits. Thus, the company posted gross profits of Rs631.13 million against profits of Rs1.58 billion in the same quarter last year.

Other expenses turned the income into losses, but it was other income of the company that rescued the company, as it surged 310 percent to Rs2.22 billion against Rs544.10 million last year. It came from shares in associates and joint ventures.

During the nine-month January-September, the company posted losses of Rs357.75 million as compared to the profits of Rs1.46 billion during the corresponding period of the last year.

PRL returns to profit

Pakistan Refinery Limited's (PRL) first quarter earnings turned into profits, amid a decline in the cost of sales.

According to its financial results issued to the Pakistan Stock Exchange on Monday, PRL announced net profits of Rs122.21 million for the quarter ended September 30 as compared to the losses of Rs648.13 million during the same period of the last year.

The company announced earnings per share (EPS) of 39 paisas against the losses per share (LPS) of Rs2.28 in the same period of the last year.

During the period under review, net sales of the company were recorded at Rs17.23 billion, down 10.3 percent against Rs19.22 billion.

The cost of sales fell 14.2 percent to Rs16.73 billion from Rs19.50 billion during the same period of the last year. Thus, gross profits remained at Rs503.47 million as compared to the losses of Rs275.50 million during the corresponding period of the last year.

A decline in the cost of sales increased the gross profits of the company. Other income of the company remained higher at Rs52.26 million from Rs32.72 million in the corresponding period of the last year.

NPL profits down 21pc

Nishat Power Limited has announced 21 percent decline in its quarterly net profits, amid fall in sales.In its condensed interim profit and loss account statement released to the Pakistan Stock Exchange (PSX), the company declared its net profits at Rs732.96 million for the quarter ended September 30, down against Rs929.55 million during the same period of the last year.

NPL also announced an interim cash dividend of Re1/share. It declared earnings per share at Rs2.07, down against Rs2.62 during the same period of the last year.

Net sales of the company also fell 21 percent to Rs3.59 billion as compared to Rs4.52 billion in the corresponding period of the last year, while cost of production also decreased to Rs2.62 billion from Rs3.31 billion. Thus, the gross profits remained at Rs966.03 million from Rs1.21 million posted last year.

Other income of Nishat Power increased to Rs11.92 million from Rs9.86 million.