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April 23, 2019

PSO’s profit drops 65 percent in January-March


April 23, 2019

KARACHI: Pakistan State Oil Company Limited’s profit fell 65 percent to Rs1.6 billion for the third quarter ended on March 31, 2019, translating into earnings per share (EPS) of Rs4.29, a bourse filing said on Monday.

The Pakistan State Oil (PSO) earned Rs4.7 billion with EPS of Rs12.02 in the corresponding quarter a year earlier, the company said in a statement to the Pakistan Stock Exchange (PSX). The company announced interim cash dividend at Rs5/share for the financial year ending June 30, 2019.

Analyst Shankar Talreja said the decline in profitability was due to inventory loss of around Rs200 million in 3QFY2019 as against inventory gain of Rs1.7 billion in 3QFY2018 and lower penal income. The company recorded loss of around Rs2.3 billion on petrol, while gain of around Rs2 billion and Rs95 million on FO (furnace oil) and HSD (high speed diesel), respectively.

“Volumetric decline of six percent in HSD/petrol and 31 percent decline in FO sales also weighed down gross profits of the company,” Talreja said. PSO’s sales, however, grew nine percent year-on-year to Rs246.6 billion in January-March. Revenue from re-gas liquefied natural gas also improved due to rupee devaluation. Finance cost of the company increased 53 percent due to higher debt borrowings and interest rates. Other income was down 55 percent due to lower penal income.

Analyst Arsalan Hanif at Arif Habib Limited said PSO booked effective taxation of 52 percent in 3QFY2019 in contrast to 36 percent in 3QFY18. “Key risks include volatility in oil prices and inventory losses, rupee depreciation and sharp pile-up in circular debt,” Talreja added.

SNGPL’s quarterly profit grows 35pc

Sui Northern Gas Pipelines Limited (SNGPL) recorded a 35 percent year-on-year growth in its profit to Rs2.5 billion for the first quarter ended September 30, 2018, translating into EPS of Rs4.09. SNGPL earned Rs1.9 billion with EPS of Rs3.03 in the corresponding period a year earlier.

The company also announced annual results with profit amounting to Rs11.1 billion with EPS of Rs17.54 compared to Rs8.6 billion and EPS of Rs13.58 a year earlier.

The company announced final cash dividend of Rs5.55/share for the year ended June 30, 2018. It was in addition to interim cash dividend of Rs1.5/share already paid for the first quarter ended September 30, 2017.

Finance costs of the company escalated to Rs10.806 billion in FY2018, up 102 percent, led by continuous rise in differential margin to Rs57 billion amid improvement in capital expenditures. Though the quantum of differential margin relaxed to Rs2.185 million in 1QFY2019, attributable to increase in consumer gas prices, finance costs took off by 152 percent to Rs4.592 million owing to hike in interest rates, according to analysts.

PSX earns Rs7.3mln in Q3

PSX earned Rs7.3 million in profit for the quarter ended March 31, 2019 with EPS of Re0.01. The bourse sustained a loss of Rs5.6 million with loss per share of Re0.01.

PSX’s revenue grew to Rs225.2 million in January-March compared to Rs204.9 million in the corresponding period a year earlier. The listing fee improved to Rs82.7 million from Rs65.3 million. Income from exchange operations fell to Rs86.1 million from Rs87.9 million.

Operating cost escalated to Rs307.9 million from Rs279.2 million. The PSX availed a tax advantage during the quarter as it amounted to Rs405,000 in the period under review as compared to Rs10.7 million a year earlier.

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