PSO’s Profit Sees Massive 91% Decline in Q1 FY2023

Pakistan State Oil (PSO) has reported a 91 percent decrease in profit after tax of Rs. 1.2 billion in Q1 ended on September 30 of the financial year 2022-2023. It posted a profit after tax of Rs. 11.99 billion in the same period last year. While the group posted a net profit after tax of Rs. 2.1 billion for the period despite the turbulent quarter. The Board of Management reviewed the performance of the company together with its subsidiary Pakistan Refinery Limited (PRL) for the first quarter that ended September 30, 2022, during the meeting held at the company’s head office in Karachi on October 27, 2022. Geo-political tension continued to cause significant fluctuations in the price of crude oil globally whereas Pakistan experienced historic devastation due to flash floods, affecting one-third of the country and leaving 33 million people homeless. Owing to these uncontrollable factors, the petroleum industry witnessed a sharp decline in consumption of all major products in the quarter as industry volumes decreased by 24.4 percent in white oil and 16.1 percent in black oil. However, the company reported net sales of Rs. 862 billion, up by 88 percent during the period compared to Rs. 459 billion recorded in the same period last year. The cost of goods sold went up by 100 percent to Rs. 855 billion from Rs. 437 billion during the period. Earnings per share of the company dropped to Rs. 2.55 from Rs. 25.55 during the period. Despite the obstruction in intercity movement due to massive flooding in major regions of Sindh, lower Punjab, and Baluchistan, PSO’s market share increased by 1.3 percent in white oil and 1.6 percent in black oil, reaching 48.8 percent and 65.6 percent respectively. The board expressed concern over mounting trade receivables, noting a significant increase compared to June 30, 2022. The matter is being actively pursued with the concerned authorities for settlement.