PSO 1QFY24 & PSMC 3QCY23 Result Previews, (AKD Daily Oct 19, 2023)
PSO – PAT to clock in at PkR18.3bn (EPS: PkR39.0) in 1QFY24: Pakistan State Oil (PSO) is expected to announce its 1QFY24 financial result on 20th October, where we expect the company to post PAT of PkR18.3bn (EPS: PkR39.0), higher by 14.0xYoY compared to LAT of PkR4.63bn (LPS: PkR9.85) in the quarter before. The said QoQ increase is majorly on the back of higher gross margins specifically on regulated products (MS/HSD) alongside significant inventory gains amid rising ex-refinery prices during the period. Company’s volumetric offtakes remained elevated as well, coming in at 1.91mn tons during the outgoing quarter (up 5%QoQ), as uptick of commercial/industrial activity alongside slight resurgence in RFO based power generation during the period bore its effects. Furthermore, we expect the company to record inventory gains of ~PkR26.0bn (PkR55.5/sh) for 1QFY24, as ex-refinery prices for MS/HSD rose by 3.1%/5.7%QoQ during the period, subsequently resulting in gross margins for the quarter to end at 5.1% (vs. 1.9% 4QFY23). On the RLNG front, PSO’s average DES price for the quarter stood at US$9.61/mmbtu, while offtakes stood at 856MMCFD (up 3%/16% QoQ/YoY), resulting in topline from the RLNG segment amounting to PkR257bn. Finally, we expect effective tax to clock in at ~40% for the period (vs 4QFY23: -86% ET), significantly lower compared to the previous quarter amidst absence of retrospective super tax.
PSMC—EPS of PkR12.3 expected for 3QCY23: The board of PSMC is scheduled to announce its 3QCY23 results today, wherein we expect the company to announce earnings of PkR1.0bn (EPS: PkR12.3), compared to PkR3.2bn (EPS: PkR39.4) in the previous quarter. The QoQ decline in the earnings is due to a one-off event in the previous quarter involving finance cost reversals. The topline is projected to reach PkR28.6bn (↑34%QoQ), mainly due to 47%QoQ increase in the sales volume, clocking in at 10.4k units. Gross margins are expected to shrink to 7.6% during the quarter compared to 10.1% in the previous quarter. Furthermore, other income is expected to increase by 29%QoQ, reaching PkR998mn, owing to increase in the ST investments in the previous quarter. Additionally, finance cost is anticipated to clock in at PkR168mn (↓96%YoY), mainly due to absence of exchange loss and demurrage charges. Finally, for the 9MCY23, the company's loss accumulates to PkR8.7bn, resulting in an LPS of PkR105.3.
Pak Suzuki Motor is engaged in assembling, progressive manufacturing and marketing of Suzuki cars, pickups, vans, and 4X4 vehicles. Co.'s product models include Baleno, Margalla, Mehran, Kyber, Ravi Pickup, Bolan Van and Potohar Jeep.
Pakistan State Oil is a petroleum group based in Pakistan. Co.'s principal activities are the procurement, storage and marketing of petroleum and related products. Co. also blends and markets various kinds of lubricating oils.
AKD Securities Ltd. is one of the leading securities firm in Pakistan, providing a comprehensive range of investor focused services, including equity brokerage, economic and securities research, investment banking and financial advisory services. AKD Securities accounts for more than 6% of the average daily value of the Karachi Stock Exchange. AKD Securities was the first brokerage house to launch an online trading platform in Pakistan in November 2002 and now has the largest market share with over 6000 customers. This has helped diversify and expand the retail investor base in the country and ushered in a whole new universe of investors to the stock market.
AKD Securities Ltd. caters to a diversified group of domestic and international institutional investors, high net worth individuals and upscale retail clients, including expatriate Pakistanis. With high quality research, unparalleled execution and distribution capability for both regular and large block trades, AKD Securities Ltd. has earned an outstanding reputation in the Pakistani securities industry.Outside of commercial banks, AKD Securities Ltd. is one of the biggest capital market firms in the country. AKD Securities is the leader in raising and providing risk capital in underwriting, market making and mergers and acquisitions in Pakistan. Good corporate governance and professionalism are emphasized throughout the firm and AKD Securities Ltd. is amongst the very few companies to have introduced a firm-wide comprehensive CODE of ETHICS, overseen by an independent compliance manager.Ultimately, our success is based on the quality of service we provide to our customers and the trust and confidence reposed in us by them. Our focus, therefore, remains on customer satisfaction at all levels in the company.
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