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coshop
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Join Date: Apr 26th, 2011 |
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Location: Islamabad |
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Posts: 48 |
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KARACHI: Pakistan State Oil (PSO) has announced an interim cash dividend of Rs3 per share, or 30 percent, as the company’s earning per share (EPS) surged to Rs53.98 for the nine-month period ended on March 31 against the EPS of Rs43.93 during the corresponding period last year, a statement said on Thursday.
However, the company did not announce any bonus shares or any other entitlement along with the results.
Despite a decline in the volumetric sales by 11 percent, favourable pricing environment propelled the company’s net sales revenue to grow by five percent to stand at Rs558.376 billion for the period under review against Rs531.157 billion last year.
“Higher base prices, particularly that of furnace oil, along with the inventory gain arising from increasing international oil prices rendered into improved gross margins. During 9MFY11, the company’s gross margins stood at 3.9 percent against 3.7 percent during the same period last year,” said Nauman Khan, an analyst at the Topline Securities.
Syed Atif, an analyst at JS Global, said that despite higher prices of the petroleum products, lower volumetric sales, owing to the floods curtailed the revenue growth. However, inventory gains and lower discounts led to gross profit rise by 10 percent to Rs21.7 billion.
However, the impact of the increase was partially diluted by the lack of support from other income and surge in the company’s financial charges.
The net profit for the period stood at Rs9.801 billion against the profit of Rs7.534 billion during the same period last year.
“The growth in earnings is owing to a one time reversal of deferred tax asset write off worth Rs15.2 per share,” said Atif.
The other income of the company declined to Rs2.536 billion during the nine months from Rs4.629 billion last year.
On account of the circular debt, the company’s financial charges surge by significant 19 percent.
Finance cost rose to Rs9.1 billion against Rs7.617 billion last year on the back of PSO’s heavy reliance on short-term borrowings to meet its working capital requirements and interest expenses paid to the refineries.
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