The financial results for the fiscal year that ended on June 30, 2023, have been released by Pakistan State Oil Company Limited (PSO).
The company reported a profit after tax (PAT) of Rs. 9.8 billion, down by 89.7% year-over-year (YoY) from Rs. 95.7 billion in FY22, despite dealing with skyrocketing inflation, sluggish market growth, a volatile currency, and a turbulent geopolitical environment.
In addition to the outcome, the business also declared a final cash dividend for the fiscal year that ended on June 30, 2023, at a rate of Rs. 7.5 per share, or 75%.
Given the higher average selling prices of petroleum products, the company’s net sales in FY23 totaled Rs. 3,539 billion, a 39 percent YoY increase, according to Arif Habib Limited (AHL). The volumetric sales of MS, HSD, and FO, however, fell by 17%, 25%, and 64% YoY, respectively.
PSO kept growing its market share across significant portfolios, particularly in white oil, where the company increased its participation by 1.8 percent to account for 51 percent of the industry’s volume. Despite the modest motor petrol sales in the nation, PSO was still able to grow its market share to 44.4 percent.
PSO was able to sell 3.4 million tonnes of diesel during the year, an increase of 2.8 percent market share over the previous year, despite a 29 percent decline in industry diesel consumption.
Building on its dominance in the jet fuel market, PSO recorded the highest market share ever at 98%.
The black oil industry saw a decline of 45 percent due to a decrease in the demand for furnace oil from the power sector, but PSO was still able to sell 1.1 million tonnes during that time. Despite a downturn in the industry, the company kept moving forward in the lubricant market, growing its market share to 25.2%.
Making strides in the field of gaseous fuels, PSO developed its LPG business by introducing the cylinder exchange facility at its retail locations, recording a remarkable sales volume of 40.3 thousand tonnes and a growth of 9%.
The circular debt crisis at the company drew the attention of the Board of Management. According to the company’s statement, the issue is being actively pursued with the relevant authorities for resolution.
Due to inventory losses during the period, the company reported a gross profit of Rs. 84.4 billion with a gross margin that contracted to 2.38 percent in FY23. Other income decreased by 34% YoY in FY23 from Rs. 25.3 billion in FY22 to Rs. 16.8 billion.
In FY23, operating costs were Rs. 26.9 billion, down 28% from Rs. 37.6 billion in FY22. In FY23, the cost of financing increased by 628 percent YoY to Rs. 43.4 billion from Rs. 5.96 billion during the same period in the previous year. In FY23, the company paid Rs. 20.1 billion in taxes, which is a 69 percent decrease from the Rs. 64.8 billion paid the year before.
PSO’s earnings per share (EPS) for FY23 were Rs. 19.85 as opposed to Rs. 194.35 during the same period the previous year.
The company’s stock price on the stock exchange was Rs. 121 at the time of filing, down 0.13 percent or Rs. 0.16 on Wednesday with a turnover of 5,920,361 shares.
