{"id":11177,"date":"2025-08-15T15:24:30","date_gmt":"2025-08-15T10:24:30","guid":{"rendered":"https:\/\/ksestocks.com\/blog\/?p=11177"},"modified":"2025-08-15T15:24:33","modified_gmt":"2025-08-15T10:24:33","slug":"pakistan-state-oil-pso-earnings-on-the-rise-despite-lower-sales","status":"publish","type":"post","link":"https:\/\/ksestocks.com\/blog\/pakistan-state-oil-pso-earnings-on-the-rise-despite-lower-sales\/","title":{"rendered":"Pakistan State Oil (PSO), Earnings on the Rise Despite Lower Sales"},"content":{"rendered":"\n<p><strong>Pakistan State Oil (<a href=\"https:\/\/ksestocks.com\/blog\/tag\/pso\/\" data-type=\"post_tag\" data-id=\"166\" target=\"_blank\" rel=\"noreferrer noopener\">PSO<\/a>)<\/strong> is expected to report strong profit growth for the fourth quarter of FY25, even though its sales revenue is down compared to last year.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Fourth quarter highlights<\/h2>\n\n\n\n<p>For 4QFY25, PSO\u2019s <strong>earnings per share (EPS)<\/strong> are expected at <strong>PKR 12.6<\/strong>, with profit after tax doubling from last year and rising <strong>45%<\/strong> compared to the previous quarter. The improvement comes despite a <strong>12% drop in sales<\/strong> from the same period last year, mainly due to lower fuel volumes sold. Volumes fell 5% year-on-year but were up a healthy 23% from the last quarter.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Full-year performance<\/h2>\n\n\n\n<p>For FY25 as a whole, PSO\u2019s EPS is expected at <strong>PKR 45.2<\/strong>, with total profit rising <strong>34%<\/strong> year-on-year. Sales for the year are likely to be <strong>12% lower<\/strong> than last year, again due to lower fuel volumes.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Why are profits rising?<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Lower Finance Costs:<\/strong> Borrowing costs have dropped sharply (down 37% YoY in the quarter) thanks to lower interest rates and reduced short-term loans.<\/li>\n\n\n\n<li><strong>Better Margins:<\/strong> PSO benefited from lower inventory losses due to favorable pricing trends.<\/li>\n\n\n\n<li><strong>Debt &amp; Receivables Control:<\/strong> Short-term borrowings fell by 10% and receivables dropped by 7% from last year, including a 6% reduction in circular debt receivables.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Dividend boost<\/h2>\n\n\n\n<p>The company is expected to announce a <strong>final cash dividend of PKR 15 per share<\/strong> for the year, higher than last year\u2019s PKR 10. This is in addition to its strong earnings growth, making it a positive signal for shareholders.<\/p>\n\n\n\n<p>Even with lower sales volumes, PSO has managed to deliver better profits by cutting borrowing costs, improving margins, and controlling receivables. Investors will likely see the higher dividend as another reason to stay confident in the stock.<\/p>\n\n\n\n<p><strong>Source: Taurus Securities Limited<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Pakistan State Oil (PSO) is expected to report strong profit growth for the fourth quarter of FY25, even though its sales revenue is down compared to last year.<\/p>\n","protected":false},"author":9252,"featured_media":6984,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[154,138],"tags":[166],"class_list":["post-11177","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","category-financials","tag-pso"],"featured_image_src":{"landsacpe":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/PSO-STOCK-PSX-1140x445.png",1140,445,true],"list":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/PSO-STOCK-PSX-463x348.png",463,348,true],"medium":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/PSO-STOCK-PSX-300x188.png",300,188,true],"full":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/PSO-STOCK-PSX.png",1920,1200,false]},"_links":{"self":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/11177","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/users\/9252"}],"replies":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/comments?post=11177"}],"version-history":[{"count":1,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/11177\/revisions"}],"predecessor-version":[{"id":11178,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/11177\/revisions\/11178"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media\/6984"}],"wp:attachment":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media?parent=11177"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/categories?post=11177"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/tags?post=11177"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}