Pakistan State Oil profits down by 50%

Pakistan State Oil’s (PSO) profit is down by 50% in the H1 of the current fiscal year.

According to the details, Pakistan State Oil, in a notice sent to Pakistan Stock Exchange (PSX) has declared that its profit has plunged by 50% to Rs.4.249 billion in the first half of the current fiscal year that ended on 31 December 2018. However, in the same period of the previous year, the company made Rs.8.522 billion.

The company has stated that due to economic uncertainty and a few other factors such as the reduction of overall market size have impacted the profits of PSO. The Earnings Per Share (EPS) of Pakistan State Oil has dropped to Rs.10.86 in the period in question whereas in the same period of the corresponding year the Earnings Per Share were Rs.21.78.

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Moreover, the company also asserted that “the challenging economic trend in the country, fuelled by rupee devaluation and adverse balance of payments position, resulted in negative growth of 27% in the cumulative liquid fuel market with negative contribution from white oil and black oil of 12% and 60% respectively,”.

Note here that the net sales of the oil company increased by 10% to Rs.572.54 billion, while, in the same period of the previous year, the company’s net sales were Rs.522.49 billion.

The oil import bill of Pakistan has surged by 10% year-on-year to $8.68bn in the first seven months of the current fiscal year (July- Jan), as opposed to $7.89bn for the same time of the corresponding year.

Furthermore, recently, the federal government increased the levy on petroleum products by up to Rs.22 per litre, in an aim to increase the revenue. The Ministry of Finance has increased the levy on petrol by Rs.4, and now it stands at Rs.14 per litre; previously it was Rs.10. Similarly, the tax on diesel has been increased to Rs.22 per litre from Rs.8. By increasing the levy, the government will be able to earn Rs.32 billion additional revenue for the month of February.

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