AKD Securities Limited - Pakistan State Oil Co. (PSO) PSO: Devaluation and FO debacle to weight on profits, (AKD Daily, Jan 30, 2018)

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AKD Securities Limited

EUR 8.70 For Business Accounts Only

PSO: Devaluation and FO debacle to weight on profits, (AKD Daily, Jan 30, 2018)

Following a rather turbulent quarter, filled with headwinds in the form of an abrupt closure of FO fired power plants impeding supply chains while a mid-month devaluation exercise imposing hefty translation losses. In this circumstance we expect the state OMC to post NPAT of PkR ~3.0bn (EPS: PkR9.19/sh on post-bonus number of shares) for 2QFY18 taking 1HFY18 NPAT to PkR8.03bn (EPS: PkR24.62/sh) down 17.3%YoY. Despite margin increments for MOGAS (OMC margin raised to PKR2.55/ltr from Nov'17 raised ~6%), and HSD sales showcasing strength (+15%QoQ), the overwhelming impact of demurrages, associated contingent expenses on deferred/delayed shipments (reportedly at ~US$15,000/day or US$105,000/week for at least six cargoes) is likely to soften margins significantly. The impact of bonus shares and signalled rise in CAPEX are expected to tone down pay-outs as well, where we expect an interim dividend of PkR5.0/sh accompanying the result.

30/01/2018 4 EN

Underlying

Pakistan State Oil Co.

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.

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PK0022501016 Pakistan Stock Exchange Pakistan

Provider

AKD Securities Limited

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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PSO: Devaluation and FO debacle to weight on profits, (AKD Daily, Jan 30, 2018)

PSO 1QFY24 & PSMC 3QCY23 Result Previews, (AKD Daily Oct 19, 2023)

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Stock Smart Weekly (May 16,2025)

Pakistan Strategy - IMF successful review strengthens case for strong rebound once geopolitical tensions subside, (AKD Daily May 10, 2025)

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