A significant increase was recorded in sales of motor gasoline, which rose 9.3% over the previous year amid lower local petroleum prices and increased motor vehicle population. PHOTO: RIAZ AHMED/EXPRESS
The company booked a net profit of Rs10.27 billion in the year as opposed to Rs6.93 billion in the preceding year. This translated into earnings per share of Rs37.81 compared to Rs25.53 last year, PSO said in a filing to the Pakistan Stock Exchange on Monday.
PSO’s board of management recommended a final cash dividend of Rs7.5 per share, which will be paid to the shareholders whose names will appear in the register of members on October 13, 2016.
This is in addition to the already paid interim cash dividend of Rs5 per share.
Topline Securities said in a post-result comment the results were in line with market expectations.
PSO’s share price rose Rs0.12 and closed at Rs411.24 with a turnover of 1.34 million shares at the stock exchange.
“The increase (in profit) is mainly due to growth in sales volume and margins of white oil products revised on November 1, 2014 and reduction in the operating and finance cost by 10% and 35% respectively,” a company statement said.
“However, the increased profit was partially offset by the decrease in black oil margins due to reduced price impact of black oil.”
A growth of 3.4% was witnessed in the overall sales volume of liquid fuels compared to last year, which was primarily driven by growth in sales of white oil and black oil by 4.1% and 2.7%, respectively, it said.
Gross sales showed a decline of 19%, as downturn in crude prices continued in the world market during the year.
The value of gross sales fell to Rs906.20 billion compared to Rs1.11 trillion in the previous year. However, the sales rose in terms of volumes.
Operating cost fell to Rs12.83 billion from Rs14.18 billion last year and finance cost dropped to Rs7.14 billion from Rs11.01 billion in the previous year.
PSO said the company continued to maintain its market leadership with an overall share of 56% (FY15: 56.8%) despite stiff market conditions during the year.
A significant increase was recorded in sales of motor gasoline, which rose 9.3% over the previous year amid lower local petroleum prices and increased motor vehicle population.
“PSO’s black oil sales volume increased 2.7% whereas industry volumes fell 3.1% owing to increased availability of natural gas/re-gasified liquefied natural gas (LNG) to power producers,” it said.
The outstanding receivables of Rs233 billion (June 30, 2015: Rs230 billion) from the power sector, PIA and Sui Northern Gas Pipelines against supplies of furnace oil, aviation fuels and LNG continued to put pressure on the already constrained liquidity position of the company and will be a challenge as international oil prices increase.
Published in The Express Tribune, August 16th, 2016.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.
COMMENTS
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ