Pakistan State Oil Company Limited (PSO) announced its financial result for 1HFY20 whereby the company declared a Profit After Tax (PAT) of PKR 6.4bn (EPS: PKR 13.71) compared to PKR 4.2bn (EPS: PKR 9.05) in 1HFY19, depicting an increase of 51% YoY.
On quarterly basis, earnings clocked-in at PKR 2,906mn (EPS: PKR 6.19), up by 43x YoY while down by 18% QoQ. Topline of the company settled at PKR 313bn for 2QFY20, up by 7% YoY, given higher prices of products along with increase in overall sales volume by 9% YoY. During 2QFY20, volumes of MoGas and HSD increased by 17% and 10% YoY while FO volumes were down by 18% YoY, respectively.
The company posted a gross profit of PKR 7.0bn with gross margins set at 2.23% in 2QFY20 compared to 1.74% in the prior year. We view noteworthy changes in ex-refinery prices that resulted in inventory loss of PKR ~800mn in 2QFY20 compared to PKR 1,800mn in same period last year.