Pakistan State Oil Company announces 50% interim dividend

Pakistan State Oil Company (PSO) has released results for 9MFY19. Along with the result, company also announced an interim cash dividend of Rs5/share.

The Company posted profit after tax of Rs5.93 billion (EPS: Rs15.2), down 55.2%YoY. The fall can be attributed to decline in sales volume by 42%YoY. On top of that inventory and exchange losses exacerbated the injury.

For 3QFY19, net profit declined by 64.3%YoY to Rs1.67 billion on shrinking volumes and mounting inventory losses. However on sequential basis, an increase was witnessed, largely due to low base in 2QFY19.

Finance cost increased to Rs2.92 billion for 3QFY19, up 53.1/43.9% YoY/QoQ. The hike can be attributed to the increase in short term borrowings despite receipt of Rs60 billion under circular debt clearance.

Tax rate for the quarter declined to 52% from 89% in last quarter. However, for 9MFY19 tax rate was recorded at 45% on the back of turnover tax applicable on LNG sales.

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