Pakistan State Oil (PSO): 1QFY21 EPS at Rs11.0, up 46% YoY (lower than industry expectations)
- Pakistan State Oil (PSO) posted 1QFY21 unconsolidated profit of Rs5,144mn (EPS: Rs11.0), a growth of 46% YoY.
- The result came in lower than industry expectations.
- Net Sales depicted a 15% YoY decline during the quarter, while COGS also decreased by 16% YoY. Gross margins improved significantly, from -3.58% in 4QFY20 and 3.2% in 1QFY20 to 4.1% in 1QFY21 potentially owing to inventory gains.
- The volumes for the company showed improvement with an increase of 7% YoY and 21% QoQ for the quarter. The Net Sales declined on a YoY basis due to lower average prices.
- Other Income is down by 23% YoY primarily owing to lower penal income.
- On the other hand, the company’s Finance Cost decreased by 68% YoY and 71% QoQ given the decline in interest rates.
- Other operating expenses were up by 22% YoY for the quarter due to provision against impaired financial assets (receivables).
- Effective taxation clocked in at 33% for the quarter compared to 26% in 4QFY20.
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.
Topline Securities is one of the fastest-growing brokerage houses in Pakistan. It has strong Equity Brokerage, Economic/ Equity Research, Commodity Trading and Corporate Finance & Advisory functions.
Topline Securities has been endowed with numerous awards by renowned international financial organizations. The highlights of which consists of the award for ‘Best Local Brokerage House of Pakistan’ by Asiamoney Brokers Poll (the largest Asia-focused equity services provider poll) in 2016 and ‘Best Equity Brokerage House’ by CFA Society Pakistan in 2015.
Previously, Topline Securities held the title for ‘Best Brokerage House’ for 4 consecutive years (2011-2014) by Asiamoney Brokers Poll. Other awards include the ‘Best Salesperson’ award by Asiamoney for 6 consecutive years (2011-2016), the ‘Arabia Fast Growth 500’ award and ‘Pakistan Fast Growth 100’ award in 2012 and 2013 by AllWorld Network.
JCR-VIS, a credit rating agency providing independent rating services in Pakistan has assigned initial rating of “A-2” for short term and “A” for long term to Topline Securities. Topline Securities is registered as Underwriter, Book Runner and Research Entity with Securities & Exchange Commission of Pakistan (SECP).
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