An analysis of PSO’s FY24 transmission released today reveals a marked improvement in the company’s cash collection for the second quarter, resulting in positive operating cashflows (CFO) for the first time since FY21.

This surge in liquidity, driven by rationalization of consumer gas prices and inclusion of RLNG diversion costs into gas tariffs, has enabled the company to water down its major liability heads, including short term debt and trade payables, by a cumulative PkR51.5bn compared to the previous quarter.

Overall, we maintain a ‘BUY’ call on PSO with a June’25 TP of PkR290/sh, alongside a DY of 11% for FY25E.

Courtesy – AKD Research