Despite higher sales, Pakistan State Oil Company Limited’s (PSO) profit-after-tax (PAT) plunged over 70%, clocking in at Rs3.74 billion for the quarter ended March 31, 2024.

In the same period of the previous year, the country’s largest oil marketing company (OMC) saw PAT of Rs12.54 billion.

According to a notice to the Pakistan Stock Exchange (PSX) on Friday, the board of directors met on April 26 to review the company’s financial and operational performance and recommended a nil dividend.

Earnings per share (EPS) were recorded at Rs9.45 in 3QFY24 as compared to EPS of Rs27.57 in the same period last year (SPLY).

PSO’s profit plunges 90% in FY2022-23

Net sales inched up to Rs873.63 billion compared to Rs827.09 billion in SPLY, which is an increase of nearly 6%.

However, despite higher sales, the company’s gross profit declined by nearly 52%, clocking in at Rs23.36 billion in 3QFY24, compared to Rs48.24 billion in SPLY.

The decrease is attributed to an increase in cost of products sold, which jumped 9% from Rs778.85 billion in 3QFY23 to Rs850.28 billion in 3QFY24.

Consequently, the profit margin of the company reduced to 2.67% in 3QFY24, down from 5.83% recorded in SPLY.

On a consolidated basis, the OMC’s ‘other income’ increased to Rs3.3 billion in 3QFY24, compared to Rs2.51 billion in SPLY, a decrease of over 31%.

On the other hand, cost of finance increased to Rs15.87 billion in the quarter ended March 31, 2024, as compared to Rs14.56 billion in same period last year, a jump of 9%. The higher finance cost during the period could be attributed to the rise in interest rate during the period.

The company’s operating expenses stood at Rs8.6 billion in 3QFY24.

Resultantly, PSO’s profit before tax declined to Rs2.47 billion in 3QFY24, a decline of 91%, as compared to Rs26.49 billion in SPLY