PSO first-quarter profit rises 35pc

KARACHI: Pakistan State Oil Company Limited (PSO) on Monday announced first quarter (Q1) results for the financial year 2016-17, posting a profit-after-tax (PAT) at Rs4.3 billion and earnings per share (eps) at Rs16.1.

The earnings represented a growth of 35 per cent over the Rs3.2bn (eps Rs11.97) earned in the same period last year. Analysts believed that the results were in line with market expectations.

PSO said in a statement: “The increase in PAT was due to a growth of 17pc in liquid fuel sales (White oil and Black oil) over the same period last year. There was an increase of 2.9pc in White oil sales and 31pc in Furnace oil sales. Gaseous fuels sales showed improvement with increase in sales volume of LPG by 134pc and LNG by 107pc. Analyst Umair Naseer at Topline Securities noted that the net sales were up 4pcYoY to Rs194bn in 1QFY17 led by strong volumetric growth in its oil sales. “The strong growth in sales volume negated any negative impact arising due to lower oil prices and supported sales of the company during 1QFY17. Oil prices were down 14pcYoY in the quarter under discussion”, said the analyst.

PSO reported that during the period under review, the company maintained its market leadership position in the industry with an overall market share of 56.5pc as opposed to 56.9pc during the same period last year. The market share of Black Oil products stood at 75.2pc and market share of White Oil products was 42.7pc.

According to a PSO release, the meeting of the Board held on Monday, ‘highlighted the financial challenge faced by the company due to outstanding receivables of Rs 249bn (June 30, 2016: Rs 233 billion) from the power sector, PIA and SNGPL against supplies of furnace oil, aviation fuels and LNG.