According to a report from AHL Research, Pakistan State Oil Company Ltd (PSO) is scheduled to announce its FY24 financial result on 27 August ’24. We expect the company to post a profit after tax of PKR 10,832mn (EPS: PKR 23.07), up by 2x YoY. During the period, net sales are anticipated to increase 6% YoY amid higher petroleum product prices. Meanwhile, the sales volume of petroleum products declined by 9% YoY.

On a quarterly basis, the company is expected to report a loss of PKR 2,565mn (LPS: PKR 5.46) compared to a loss of PKR 4,623mn (LPS: PKR 9.85) in SPLY. The topline ascended by 6% YoY on the back of a hike in the price of MS and HSD, coupled with an increase in sales of MS and FO by 1% and 32% YoY, respectively.

Furthermore, revenue contribution from the RLNG segment is projected to be PKR 297bn (up 17% YoY) given higher DES price (up by 5% YoY) tagged with the handling of 29 cargos in 4QFY24 versus 25 cargos in SPLY. Gross margins are expected to settle at 2.0% in 4QFY24 against 1.9% in SPLY, given lower inventory losses (clocking in at ~PKR 7bn) during the quarter. The finance cost is forecasted to plummet by 11% YoY due to lower short-term borrowings. In addition to the result, we expect PSO to announce a final cash dividend of PKR 10.00/share in FY24 (PKR 7.50 in FY23).