Pakistan State Oil (PSO) is scheduled to announce its 1QFY23 result on 27th Oct’22, where we estimate the company to post a profit after tax of PKR 7.2bn (EPS: PKR 15.27), down by 40% YoY. The fall in bottom-line comes on the back of lower volumes and inventory loss during the period under review compared to inventory gains in same period last year. Net revenue of the company is projected to surge by 89% YoY amid jump in prices of petroleum products. Whereas, sales volumes plunged by 22% YoY to 2.4mn tons (FO, MS and HSD volumes decreased by 22%, 24% and 28% YoY, respectively).

Meanwhile, the finance cost is projected to increase by 2x YoY owed to higher short term borrowings. On quarterly basis, PSO’s topline is expected to dip by 4% QoQ owed to volumetric decline of 32% (MS, FO and HSD offtake reduced by 21%, 29% and 46% QoQ, respectively) due to flash floods across the country.

Courtesy – AHL Research