Pakistan State Oil (PSO) is scheduled to announce its 1QFY22 result on October 28th, 2021. During the period, we estimate the company to report a PAT of PKR 9.0bn (EPS: PKR 19.13), up by 75% YoY. This is attributable to higher volumetric growth and inventory gain of PKR 5.7bn expected in the period under review compared to inventory gains of PKR 1.5bn in same period last year.

Topline of the company is anticipated to increase by 66% YoY due to increase in prices of petroleum products and rise in sales volumes by 34% YoY to 3.03mn tons (FO, HSD and MS volumes increased by 67%, 26% and 21% YoY).

On quarterly basis, PSO’s topline is expected to increase by 33% QoQ owed to volumetric jump of 23% QoQ (FO and MS by 144% and 15% QoQ) and higher selling prices. Finance cost is expected to decline by 77% QoQ due to reduction in short term borrowings.

Courtesy – AHL Research