Karachi: Pakistan State Oil (PSO) and Attock Petroleum Limited (APL) are poised to release their financial results for the first quarter of FY25, revealing substantial declines in profit due to adverse market conditions. PSO is expected to report a profit after tax (PAT) of PkR2.51 billion, a sharp 89% drop year-over-year, while APL anticipates a PAT of PkR2.0 billion, down 62% from the same period last year.

According to AKD Securities Limited, PSO’s financial struggles are largely due to significant inventory losses totaling approximately PkR4.1 billion, attributed to falling ex-refinery prices, notably in the local motor spirit and high-speed diesel sectors. This situation is mirrored in APL’s anticipated inventory losses of around PkR565 million. Despite these challenges, PSO’s revenue remains largely stable at PkR906 billion due to a 4% increase in fuel uptake, while APL’s revenue is expected to decrease by 9% to PkR124.3 billion due to lower fuel volumes supplied.

Both companies face tightened gross margins, with PSO’s dropping to 2.4% from a previous 6.4%, and APL’s to 2.7% from 7.5%. Despite these downturns, AKD Securities maintains a ‘Buy’ rating on both stocks, citing potential for significant recovery with price targets set for June 2025, suggesting a 43% upside for PSO and 20% for APL.