The oil-marketing giant Pakistan State Oil (PSO) has posted Rs 10.049 billion losses after tax in half year (July-December 2008-09) due to huge inventory losses as well as the increased financing cost.
The financial results of the company announced on Tuesday indicated that profit nose-dived sharply in the period under review from Rs 5.487 billion profit after tax (pat) in the corresponding period of previous year.
Though the company posted a significant 58 percent increase in revenues, huge inventory losses amid sharp decline in oil prices from its peak level led to gross losses in first half of current fiscal. The operating expenses and finance costs also increased drastically by 102 percent and 597 percent respectively amid currency devaluation and higher short-term borrowing.
The loss per share of the company also plunged heavily to Rs 58.59 against the earnings per share of Rs 32 recorded in the same period of previous year.
Analysts attributed that finance cost increase to short-term borrowings by the company to cover huge receivables from thermal power plants including WAPDA and IPPs.
PSO is at the central stage of the circular debt trap as it stands with both colossal amounts of ‘receivables from’ and ‘payable to’ entities.
PSO’s liquidity position is affected with around Rs 7 billion of Price Differential Claims (PDCs) and around Rs 85 billion of receivables from the IPPs where HUBCO (Rs 45 billion) and KAPCO (Rs18 billion) alone account for 75 percent of the amount.
On the other hand, PSO owes Rs 38 billion to PARCO, Rs 7 billion to NRL, Rs 11 billion to PRL and Rs 12 billion to ARL. The company is standing with receivables of around Rs 92 billion whereas payables total Rs 68 billion.
The gross sales jumped to Rs 391.547 billion in first half of current financial year from Rs 248.391 billion in the same period of previous year. The cost of product sold also rose sharply to Rs 334.682 billion in the period under review against Rs 200.428 billion in the previous year.
During the review period, the industry sales were lower by 4 percent mainly due to higher retail price and a general slowdown of the economy. Despite this decline, the company improved its market share by 1.3 percent to 71.2 percent and sold 6.03 million tonnes of product in the review period. This translated into a turnover of Rs 392 billion versus Rs 248 billion in the corresponding period last year, an increase of 58 percent.
Alone in second quarter of current fiscal, the company posted loss of Rs 1.7 billion (loss per share Rs 9.7) versus profit of Rs 3.4 billion (EPS Rs19.7) in same period of previous year.
Although, PSO recorded a staggering Rs 10 billion loss, it announced Rs 5 per share cash dividend, which triggered buying spree in its script by closing higher at Rs.137.01 Tuesday compared with Rs 130.49 in the previous trading session.
The financial results of the company announced on Tuesday indicated that profit nose-dived sharply in the period under review from Rs 5.487 billion profit after tax (pat) in the corresponding period of previous year.
Though the company posted a significant 58 percent increase in revenues, huge inventory losses amid sharp decline in oil prices from its peak level led to gross losses in first half of current fiscal. The operating expenses and finance costs also increased drastically by 102 percent and 597 percent respectively amid currency devaluation and higher short-term borrowing.
The loss per share of the company also plunged heavily to Rs 58.59 against the earnings per share of Rs 32 recorded in the same period of previous year.
Analysts attributed that finance cost increase to short-term borrowings by the company to cover huge receivables from thermal power plants including WAPDA and IPPs.
PSO is at the central stage of the circular debt trap as it stands with both colossal amounts of ‘receivables from’ and ‘payable to’ entities.
PSO’s liquidity position is affected with around Rs 7 billion of Price Differential Claims (PDCs) and around Rs 85 billion of receivables from the IPPs where HUBCO (Rs 45 billion) and KAPCO (Rs18 billion) alone account for 75 percent of the amount.
On the other hand, PSO owes Rs 38 billion to PARCO, Rs 7 billion to NRL, Rs 11 billion to PRL and Rs 12 billion to ARL. The company is standing with receivables of around Rs 92 billion whereas payables total Rs 68 billion.
The gross sales jumped to Rs 391.547 billion in first half of current financial year from Rs 248.391 billion in the same period of previous year. The cost of product sold also rose sharply to Rs 334.682 billion in the period under review against Rs 200.428 billion in the previous year.
During the review period, the industry sales were lower by 4 percent mainly due to higher retail price and a general slowdown of the economy. Despite this decline, the company improved its market share by 1.3 percent to 71.2 percent and sold 6.03 million tonnes of product in the review period. This translated into a turnover of Rs 392 billion versus Rs 248 billion in the corresponding period last year, an increase of 58 percent.
Alone in second quarter of current fiscal, the company posted loss of Rs 1.7 billion (loss per share Rs 9.7) versus profit of Rs 3.4 billion (EPS Rs19.7) in same period of previous year.
Although, PSO recorded a staggering Rs 10 billion loss, it announced Rs 5 per share cash dividend, which triggered buying spree in its script by closing higher at Rs.137.01 Tuesday compared with Rs 130.49 in the previous trading session.
Comments