Pakistan State Oil Company (PSO), problem ridden largest oil marketing company of the country has announced its half yearly financial results posting 73 percent decline in profit after tax.
Net profit plunged to Rs4.3 billion (EPS: Rs15.76) during July-December period of 2014 as compared Rs15.8 billion (EPS: Rs58.15) for the corresponding of 2013.
The decline has been attributed to colossal inventory loss booked by the company due to declining crude oil prices in the global markets.
During the period under review, market share of the company also declined to 57 percent from 63 percent. The market share of black oil products also slipped to 67 percent from 75 percent and share of white oil products eroded to 49 percent from 53 percent. .
The company’s sales volume of motor gasoline grew by 4 percent but sales volume of furnace oil and High Speed Diesel declined by 16 percent and 10 percent respectively.
The company reported that the decline of 73 percent in earnings mainly related to: 1) decrease in receipts relating to late payment surcharge at Rs3 billion against Rs11 billion YoY and inventory loss of Rs2.7 billion against inventory gain of Rs6.4 billion YoY.