PSO Reports Strong Revenue Collection, Boosting Liquidity and Reducing Obligations

Karachi: Pakistan State Oil (PSO) reported significant progress in revenue collection for the third consecutive quarter, with total trade receivables declining by PkR80 billion from December 2023’s peak of PkR548 billion. This reduction, driven by collection rates exceeding 100% on liquefied natural gas (LNG) revenue, has enhanced the company’s liquidity and allowed it to lower short-term borrowings and trade payables.

According to AKD Securities Limited, PSO’s improved cash flow facilitated a PkR48 billion reduction in short-term borrowings and an PkR89 billion decrease in trade payables year-to-date. Additionally, the company’s cash position reached PkR16.6 billion, or PkR35 per share, the highest in over a year. Based on these developments, AKD Securities has reaffirmed a ‘BUY’ rating on PSO stock, setting a target price of PkR290 per share by June 2025, with an expected dividend yield of 8% for FY25.

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