Pakistan State Oil Company Limited (PSX: PSO) announced a significant drop in their year-on-year profitability, with their profit after tax plunging by 81.9%. The profit for the period was Rs 3.97 billion, a sharp decline from Rs 21.89 billion during the same period last year. Their revenue also decreased by 14.4%, falling to Rs 787.59 billion compared to Rs 920.08 billion previously.
Even though the cost of sales went down by 11.6%, this reduction was not enough to balance the revenue decline. As a result, the gross profit decreased by 56%, amounting to Rs 25.74 billion. The company’s gross margins also worsened, dropping to 3.3% from 6.4% last year.
Administrative expenses saw a notable increase, rising by 28.9% to Rs 1.66 billion. Additionally, other income and profit from associates experienced significant reductions, further impacting the company’s financial performance.
This downturn reflects the challenging environment PSO is navigating, as the disparity between revenue decline and cost savings has put substantial pressure on their profitability. Despite efforts to manage costs, the company faced higher administrative expenses and reduced income from other sources.
