PSO: Earnings expected to arrive at PKR 30.39/share in 1HFY24

Pakistan State Oil Company Ltd (PSO) is scheduled to announce its 1HFY24 financial result on 15th Feb’24, where we expect the company to post a profit after tax of PKR 14,269mn (EPS: PKR 30.39) versus loss of PKR 3,361mn (LPS: PKR 7.16) in 1HFY23. The gross margins are forecasted to climb up by 274bps YoY to 3.42% amid inventory gains during 1HFY24.

Meanwhile, sales volume of petroleum products reduced by 17% YoY (MS, HSD, and FO down by 1%, 6%, and 86% YoY, respectively). On a quarterly basis, the company is expected to register a loss of PKR 7,619mn (LPS: PKR 16.23) compared to a loss of PKR 4,559mn (LPS: PKR 9.71) owed to i) higher inventory losses, and ii) jump in finance cost. Gross margins are anticipated to settle at 0.54% in 2QFY24 against 0.57% in SPLY given lower offtake of MS and FO coupled with inventory losses (clocking in at ~PKR 18bn during the quarter).

The overall sales volume climbed up by 6% YoY in 2QFY24 owed to 23% YoY jump in HSD sales. The finance cost is expected to ascend by a 24% YoY owed a surge in short term borrowings.

Courtesy – AHL Research

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