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Karachi, Pakistan State Oil (PSO) is projected to announce a notable profit after tax (PAT) of PkR18.3bn for 1QFY24, marking a significant increase from the same period last year. The hike can be attributed to increased gross margins, especially on regulated products, and significant inventory gains. Conversely, Pak Suzuki Motor Company (PSMC) is expected to report a quarterly earnings per share (EPS) of PkR12.3 for 3QCY23, which reflects a decline from the previous quarter due to a one-off finance cost reversal event, according to research insights by AKD Securities Limited.
PSO’s Projected Performance:
Scheduled to release its 1QFY24 financial results on 20th October, PSO’s anticipated PAT of PkR18.3bn showcases a 14.0x year-over-year growth. The rise in earnings is primarily attributed to higher gross margins on regulated products (MS/HSD) and significant inventory gains influenced by the increasing ex-refinery prices during the time. The company’s volumetric off-takes also saw a boost, registering at 1.91mn tons, marking a 5% quarter-over-quarter growth. This surge can be traced back to heightened commercial and industrial activities and a slight increase in RFO-based power generation. PSO is also expected to report inventory gains of approximately PkR26.0bn for the first quarter, a result of a rise in ex-refinery prices for MS/HSD by 3.1% and 5.7% respectively. PSO’s RLNG segment is anticipated to contribute significantly with the average DES price standing at US$9.61/mmbtu and offtakes reaching 856MMCFD, leading to a topline of PkR257bn.
PSMC’s Anticipated Results:
The PSMC board is set to reveal its 3QCY23 results today. AKD Securities anticipates the company to post earnings of PkR1.0bn, a decline from PkR3.2bn in the prior quarter. This drop is primarily attributed to an exceptional event involving finance cost reversals in the previous quarter. However, the company’s topline is projected to rise to PkR28.6bn, thanks to a 47% surge in sales volume, which is expected to reach 10.4k units. A reduction in gross margins from 10.1% to an estimated 7.6% is foreseen, while other income may rise by 29%, touching PkR998mn, due to increased short-term investments in the prior quarter. The finance cost for PSMC is expected to be PkR168mn, a significant 96% year-over-year decrease. Cumulatively, for the 9MCY23 period, PSMC’s losses are estimated to be PkR8.7bn.
The post PSO Anticipated to Post Elevated Earnings in 1QFY24, While PSMC’s 3QCY23 Earnings Expected to Show Decline appeared first on Pakistan Business News.