KARACHI: Pakistan State Oil Company (PSO) has reported a significant financial performance for the fiscal year 2024 (FY24), with earnings per share (EPS) reaching Rs33.79, reflecting a remarkable 180% year-over-year (YoY) increase. The company’s earnings outpaced industry expectations, largely due to a substantial rise in other income during the fourth quarter (4QFY24).
According to Topline Securities Research, in its 4QFY24 results, PSO recorded an unconsolidated profit of Rs2.5 billion, translating to an EPS of Rs5.25. This strong performance was driven by an impressive other income of Rs10.3 billion, a 424% YoY surge compared to Rs2 billion in the same quarter last year. The increase is attributed to interest accrued on delayed payments from customers.
For the full fiscal year, PSO’s earnings reached Rs15.9 billion, up from Rs5.7 billion in FY23, marking a substantial improvement. The company also declared a final cash dividend of Rs10 per share, in line with market expectations.
Despite a challenging operating environment, PSO’s net sales for 4QFY24 increased by 3% YoY and 7% quarter-over-quarter (QoQ) to Rs901 billion. For the entire FY24, sales totaled Rs3.6 trillion, up 5% YoY. This growth was achieved despite a 15% decline in Motor Spirit (MS) sales and an 18% drop in High-Speed Diesel (HSD) sales, offset by higher petrol and diesel prices.
Petrol prices averaged Rs280.89 per litre in FY24, a 15% YoY increase, while diesel prices averaged Rs286.44 per litre, up 12% YoY. On a quarterly basis, HSD volumetric sales rose by 11% QoQ, while MS sales increased by 1% QoQ during 4QFY24.
The company managed to reduce distribution expenses by 1% YoY and 3% QoQ to Rs4.8 billion. However, finance costs for the year increased by 30% YoY to Rs52 billion, primarily due to higher short-term borrowings driven by delayed payments from customers.
PSO’s effective tax rate stood at 74% for 4QFY24, leading to a full-year tax rate of 62% of profit before tax (PBT) and 0.72% of turnover.
This strong financial performance and the accompanying dividend announcement reflect PSO’s resilience and ability to navigate a challenging economic environment, while positioning the company for future growth.
