Corporate results: Pakistan State Oil’s profit soars 107%

Higher other income supports profit growth.

KARACHI: Pakistan State Oil (PSO), the country’s largest oil marketing company, has posted earnings of Rs19.4 billion in the first nine months of financial year 2013-14, up 107% compared to Rs9.4 billion in the corresponding period of previous year.

With a muted growth of 4% in volumes, the growth in profit came primarily as a result of higher other income that soared 304% in the July-March period, Shajar Research said in a report on Tuesday.

The growth in other income stemmed from realisation of late payment mark-up and profit on Pakistan Investment Bonds issued to the energy sector. Further support came from subdued growth in other expenses, the research house said.

In the third quarter alone, PSO recorded earnings of Rs3.6 billion, an increase of 18% from the same period of previous year, but down 55% from the previous quarter.

In the nine-month period, gross sales crossed the trillion mark and stood at Rs1.02 trillion compared to Rs930 billion in the same period of last year, representing a growth of 10%, PSO said in a press release.

Depreciation of the rupee against the US dollar by 6.5% in the first half was followed by an appreciation of 7% in the third quarter, resulting in a net exchange loss of Rs1.2 billion.

Owing to liquidity issues faced by the company caused by outstanding receivables, mainly from power sector customers, the PSO board decided to defer dividends at this stage.

Published in The Express Tribune, April 30^th, 2014.

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