PSO records 81.9 per cent drop in profits following revenue decline

ISLAMABAD: Pakistan State Oil Company Limited (PSO) has witnessed a massive 81.9 per cent year-on-year (YoY) drop in profits as the company recorded a profit after tax (PAT) of only Rs3.97 billion in the third quarter of the ongoing year.

These earnings are down from Rs21.89 billion which PSO recorded in the same period last year.
The company’s revenue took a hit, declining by 14.4 per cent to Rs787.59 billion, compared to Rs920.08 billion in the same period last year.

The cost of sales dipped 11.6 per cent leading to a 56 per cent reduction in gross profit, which stood at Rs25.74 billion for the quarter. As a result, gross profit margins dropped to 3.3 per cent, down from 6.4 per cent in the previous year.

PSO’s other income declined by 3 per cent, reaching Rs254.76 million as compared to Rs441.3 million in the same time last year. Additionally, the share of profit from associated companies was recorded 42.27 per cent down.

Considering expenses of the oil company, administrative costs increased by 28.9 per cent YoY to Rs1.66 billion, while distribution and selling expenses went up by 10.4 per cent to Rs4.44 billion. Other operating expenses decreased significantly, by 72.5 per cent YoY, to Rs891.44 million.

The company’s finance costs rose by 1.4 per cent, reaching Rs10.42 billion, up from Rs10.28 billion last year, largely driven by higher interest rates.

To note, PSO’s tax payments were down by 63.1 per cent, with Rs7.74 billion paid in the quarter, compared to Rs20.97 billion it paid in the same time last year.

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