Karachi: Pakistan State Oil Ltd (PSO) announced its financial results, revealing a decline in net profit after tax (NPAT) to PKR 2.7 billion, equivalent to earnings per share (EPS) of PKR 5.8. This marks a 62% decrease compared to the same period last year, falling below market expectations due to higher-than-anticipated inventory losses and reduced other income.
According to AKD Securities Limited, PSO's net revenues for the second quarter of fiscal year 2026 stood at PKR 761 billion, which is a 9% decline year-over-year. The decrease is primarily attributed to reduced sales volumes, which amounted to 1.8 million tons, reflecting a 12% drop from the previous year. Specifically, motor spirit (MS) and high-speed diesel (HSD) saw respective declines of 16% and 11% year-over-year.
The company's gross profitability also dropped, with gross margins falling to PKR 17 billion, or 2.2%, compared to PKR 25 billion, or 3.0%, in the same period last year. This represents a 32% decline year-over-year. PSO is estimated to have incurred inventory losses amounting to PKR 5.3 billion, equivalent to PKR 11.2 per share, during the quarter. Despite these challenges, the company's first-half net profit rose by 8% year-over-year to PKR 12.1 billion, with an EPS of PKR 25.8.
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