PSO_4QFY22 Result Preview, (AKD Daily, Jul 20, 2022)
We expect Pakistan State Oil (PSO) to post PAT of PkR44bn (EPS: PkR94) in its 4QFY22 result, increasing by 290%YoY/30%QoQ on the back of astronomical inventory gains, subsequently keeping gross margins skywards.
On the topline front, company’s revenue is expected to clock in at PkR893bn, up 154%YoY/57%QoQ as retail prices increases coupled with risen dispatches (up 36% QoQ) al-lowed the company post its highest ever quarterly topline.
PSO has remained in limelight recently due to positive result expectations, rallying 11% since 1st June and outperforming KSE-100 index by 13% during the period, as oil prices alongside refinery margins continued to power through resulting in inventory gains for the sector. Another factor which contributed to the cause was IMF putting down strin-gent conditions to the government to take steps to curtail circular debt of power and gas sectors.
A bill rationalizing the gas tariffs has been proposed which is waiting the final nod from Federal cabinet. Once implemented, PSO's working capital position will likely improve due to increased collections on LNG sales front. Furthermore, recent crude/finished prod-uct sell off may also provide respite on the cash flows due to falling costs of supply (risk of inventory losses in the near term). Therefore, we expect the scrip to remain in the limelight in short term due to the said developments.
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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