The unconsolidated profit of Pakistan State Oil for the fiscal year 2022 after tax deduction came in at Rs 86.22 billion, showing a 196 percent increase from the previous year’s Rs 29.13 billion, Pakistan State Oil (PSO) reported on Friday.
As per the company filing available on the Pakistan Stock Exchange website, PSO’s net sales during the year increased to Rs 2.45 trillion as compared to Rs 1.2 trillion last year, which equates to a 104.1 percent jump.
Consequently, the government-run supplier announced a dividend of Rs 10 per share. PSO’s gross margins also rose to 6.5 percent during FY22 from 4.5 percent during the last year.
Read more: PSO reports profit after tax of Rs 5.1 billion in Q1 of FY21
AKD Securities, one of the leading securities firms in Pakistan, which provides a comprehensive range of investor-focused services, stated in a note that the earnings were lower than projected due to higher other expenses which stood at Rs 9.1 billion as compared to expectations of a billion.
“Another major difference occurred due to exorbitant tax of Rs 32.9 billion (effective 61%) for the quarter against our expectation of Rs 27 billion. Significant inventory gains arose on the back of increasing oil prices where differences between ex-refinery prices of MS/HSD increased by 90/100% during the quarter on a sequential basis. We expect inventory gains to have clocked in at Rs 45 billion versus our expectations of Rs 51 billion during the period,” AKD Securities remarked.
Meanwhile, Arif Habib Limited revealed in its report that the finance costs decreased given the lower late payment surcharge.
“During FY22, the company recognized a provision for impairment on financial assets of Rs 5.1 billion as against Rs 898 million last year likely due to accounting for implementation of IFRS-9.”
“During the last quarter of FY22, the company incorporated the super tax impact in the calculation of tax which led to the effective tax rate of 61% in 4QFY22 taking the overall FY22 effective tax rate of 42% vs. 34% in FY2,” the brokerage house added.