Karachi, June 29, 2022 (PPI-OT): PSO: Tough times won’t last

Pakistan State Oil (PSO) held its analyst briefing on 28th June, to shed light on the company’s financial performance during 9MFY22. The company reported 3QFY22 NPAT of PkR32.5bn (EPS: PkR69.4), bringing 9MFY22 NPAT to PkR64.7bn (EPS: PkR138) during the period, up 255%YoY from PkR18.2bn in 9MFY21 (EPS: PkR38.8). The company announced no dividends during 9MFY22, vs. PkR5/sh of interim dividend SPLY (Dividend FY21: PkR15/sh).

The increase in the profitability during 9MFY22 was due to strong growth in volumes and huge inventory gains during the period. As per the management, inventory gains were responsible for 40-45% of the total profitability during the period, due to sharply increasing ex-refinery prices.

With regards to PRL’s upgradation, the company recently began a consultation/field study which may take upto 10 months. Once it is done, then PSO may begin planning out what capital injection is required in its refinery subsidiary.

PSO (TP: 210/sh) remained the standout performer in May’22 with total YoY volume increases standing at 61% against industry volumes rising by 33% in the same period. Overall, PSO continues to dominate the retail front, securing a 51% market share in 11MFY22 (42% in 11MFY21) with consistent storage (112k MT in 9MFY22) and retail expansion (39 new outlets in 9MFY22).