Financials

    • Analysis Of Financial Position

      Analysis Of Financial Position

      For The Year Ended June 30, 2021

      Rupees In Millions
      Assets 2021 2020 2019 2018 2017 2016
      Shareholders' equity 139,978 113,061 119,181 110,452 102,850 91,581
      Non-current assets 51,297 49,611 32,854 24,561 23,883 68,142
      Current assets 327,962 293,261 384,225 378,001 368,560 274,174
      Non-current liabilities 12,239 12,461 7,528 5,165 8,090 6,234
      Current liabilities 227,043 217,350 290,371 286,945 281,504 244,501

      Analysis Of Financial Position

      As of June 30, 2021, variation as compared to June 30, 2020 is as follows:

      • Shareholders' equity increased by 23.8% primarily due to profit retained during the year.

      • Decrease in non-current liabilities by 1.8% mainly due to reduction in wharfage payable

      • Non-current assets increased by 3.4% mainly due to additions in property, plant & equipment.

      • Increase in current liabilities by 4.5% primarily due to increase in trade and other payables mainly on account of increase in cost of purchase which is partially offset by decline in short term borrowings and accrued interest / mark up.

      • Current assets increased by 11.8% primarily due to increase in stock in trade (mainly due to price variance) and trade debts which is partially offset by decline in other receivables, short term deposits and prepayments and cash and bank balances.

    • Analysis Of Financial Performance

      Analysis of financial performance

      For the year ended June 30, 2021

      Rupees In Millions
      Assets 2021 2020 2019 2018 2017 2016
      Gross sales 1,424,249 1,302,037 1,340,978 1,312,090 1,096,543 906,177
      Net sales 1,204,247 1,108,358 1,154,298 1,063,744 878,147 677,940
      Gross profit 54,609 12,227 36,017 39,636 37,136 22,525
      Other income (including share of profit of associates) 19,408 10,755 7,559 7,911 11,751 13,411
      Marketing administrative expenses 14,890 14,638 12,414 11,929 11,238 10,511
      Other expenses 4,829 51 4,699 3,334 2,378 1,986
      Operating profit 53,717 7,749 26,257 31,870 34,662 22,826
      Finance cost 10,242 13,427 8,987 5,123 5,923 7,150
      Profit / (Loss) before tax 44,056 (5,134) 17,477 27,160 29,347 16,289
      Profit / (Loss) after tax 29,139 (6,466) 10,587 15,461 18,226 10,273
      Earning before interest, taxes, depreciation amortization (EBITDA) 56,053 9,907 27,591 33,357 36,322 24,464

      Analysis

      In FY21, Company has reported profit after tax of Rs.29.14 bn. primarily on account of following elements:

      • Increase in gross profit by 346.6% on account of higher sales volumes of white oil and black oil products due to rise in industry demand and focused sales strategies adopted by PSO. Gross profit also increased due to favourable pricing conditions on account of rise in international oil prices.

      • Increase in other income by 80.5% due to receipt of higher LPS income and exchange gain on account of appreciation of PKR vs USD.

      • Decline in finance cost by 23.7% mainly due to lower borrowing levels on account of recovery from power sector and increased white oil sales and lower average markup rates during the period vs. SPLY.

    • Analysis Of Variation In Results Reported In Interim Reports

      Analysis of financial performance

      For the year ended June 30, 2021

      Rupees In Millions
      Assets Q1 Q2 Q3 Q4 FY 2021
      Gross sales 332,803 338,608 337,292 415,546 1,424,249
      Gross profit 11,496 8,993 17,251 16,869 54,609
      Other income 1,236 3,175 740 13,675 18,826
      Operating cost (4,349) (5,160) (4,136) (6,074) (19,719)
      Finance cost (859) (579) (1,064) (7,740) (10,242)
      Share of profit of associate - net of tax 152 144 134 151 581
      Profit before taxation 7,676 6,573 12,925 16,882 44,056
      Taxation (2,532) (2,196) (4,205) (5,984) (14,917)
      Profit after taxation 5,144 4,377 8,720 10,898 29,139
      • Gross Sales

        Gross sales were highest in 4th quarter due to rise in industry sales demand and focused sales strategies adopted by PSO.

      • Gross Profit

        Gross profit went down in 2nd quarter but it grew in 3rd and 4th quarter due to favourable price regime and higher sales volume.

      • Other income

        Other income was highest in 4th quarter primarily due to significant receipt of late payment interest from power sector in that period.

      • Finance Cost

        Finance cost was low in the first half mainly due to lower average borrowing levels which increased in later part of the year.

    • Summary Of Cash Flow Statement

      Analysis of financial performance

      For the year ended June 30, 2021

      Rupees In Millions
      Assets 2021 2020 2019 2018 2017 2016
      Cash and cash equivalents at the beginning of the year (881) (16,468) (7,925) (41,502) (30,274) (39,584)
      Net Cash inflow / (outflow) from operating activities 17,766 48,260 (9,232) 2,580 (27,965) (994)
      Net Cash (outflow) / inflow from investing activities (5,294) (4,843) (2,534) 45,226 3,925 4,098
      Net Cash (outflow) / inflow from financing activities (17,507)) (27,830) 3,223 (14,229) 12,812 6,206
      (5,036) 15,587 (8,543) 33,577 (11,228) 9,310
      Cash and cash equivalents at the end of the year (5,917) (881) (16,468) (7,925) (41,502) (30,274)
      • Analysis

        The variation in cash flows as compared to FY2020 is due to the following:

      • Operating Activities

        In FY21, Cash flow from operating activities is positive, however, it has decreased as compared to FY20. The cash flows have decreased in FY21 primarily due to increase in stock in trade and trade debts which is partially offset by increase in trade and other payables.

      • Investing Activities

        In FY21, Cash outflow from investing activities has increased primarily due to additions in property, plant and equipment.

      • Financing Activities

        In FY21, Cash flow from financing activities is still negative primarily due to loans repaid during the year.

    • Profitability Ratios
      Assets 2021 2020 2019 2018 2017 2016
      Gross profit ratio % 4.53 1.10 3.12 3.73 4.23 3.32
      Net Profit / (Loss) ratio % 2.42 (0.58) 0.92 1.45 2.08 1.52
      EBITDA margin to sales % 4.65 0.89 2.39 3.14 4.14 3.61
      Return on shareholders' equity % 20.82 (5.72) 8.88 14.00 17.72 11.22
      Return on capital employed % 15.52 (3.19) 4.97 7.13 8.48 5.39
      Operating leverage ratio % 6,411.86 1,725.19 (211.76) (40.07) 170.92 (6.54)

      Analysis

      The variation in ratios as compared to FY 2020 is because of the following:

      • Gross Profit and EBITDA ratios have increased as compared to last year due to improvement in gross margins.

      • Net profit ratio went up due to higher gross margins, increase in other income and reduction in finance cost.

      • Positive return on shareholders' equity and capital employed as compared to negative in last year is due to profit earned during the year on account of reasons mentioned above vs loss in last year.

      • The increase in operating leverage ratio is due to more proportionate increase in EBIT as compared to sales on account of increase in gross margins and other income.

    • Capital Structure Ratios
      Assets 2021 2020 2019 2018 2017 2016
      Interest cover ratio (x) 5.30 0.62 2.94 6.30 5.95 3.28
      Financial leverage ratio (x) 41.00 59.00 90.00 81.00 127.00 115.00
      Weighted average cost of debt % 3.69 13.19 8.58 4.10 4.66 5.02
      Economic value addition PKR. In Mn 10,292 (32,114) (14,962) (8,075) (4,570) (9,903)

      Analysis

      The variation in ratios as compared to FY 2020 is because of the following:

      • Interest cover has increased due to decline in finance cost by 23.7% and increase in earning before interest and taxes by 554.7%.

      • Financial leverage has decreased during the year mainly on account of decline of short term borrowings by PKR.10.4 bn and increase in shareholder's equity by PKR. 26.9 bn.

      • Weighted average cost of debt has decreased significantly due to lower borrowing rates during the period.

    • Liquidity Ratios
      Rupees In Millions
      Assets 2021 2020 2019 2018 2017 2016
      Cash to current liabilities (x) (0.026) (0.004) (0.06) (0.03) (0.15) (0.12)
      Cash Flow from Operating Activity (x) 0.08 0.21 (0.04) 0.01 (0.12) (0.004)
      Cash Flow from Operations to Sales (x) 0.01 0.04 (0.01) 0.002 (0.03) (0.001)
      Current ratio (x) 1.44 1.35 1.32 1.32 1.31 1.12
      Quick ratio (x) 1.10 1.09 1.01 1.03 1.07 0.91
      Free cash flows to the firm PKR. In Mn. 42,886 66,161 (3,130) 8,063 (18,742) 6,594
      Free cash flows to the equity holders PKR. In Mn. 23,645 27,347 386 (2,464) (6,191) 12,091

      Analysis

      The variation in ratios as compared to FY 2020 is because of the following:

      • Cash to current liabilities has decreased due to reduction in cash and cash equivalents during the year whereas the current liabilities have increased by 4.5%.

      • Cash flow from operating activity and cash flow from operations to sales both these ratios have decreased due to decrease in cashflow from operations during the year. The cash flows from operating activities have decreased in FY21 primarily due to increase in stock in trade and trade debts which is partially offset by increase in trade and other payables.

      • Current ratio has improved slightly due to greater percentage increase in current assets than current liabilities. Current assets have increased mainly due to increase in stock in trade and trade debts.

      • Quick ratio has also improved slightly due to greater percentage increase in quick assets than increase in current liabililties.

      • Decrease in cash flows to the firm and equity holders are primarily due to negative working capital on account of increase in stock in trade and trade debts.

    • Investment Ratios
      Assets 2021 2020 2019 2018 2017 2016
      Earning / (Loss) per share (basic & diluted) PKR 62.1 (13.8) 22.5 32.9 38.8 21.9
      Market value per share (Year End) PKR 224.3 158.2 169.6 318.3 387.4 375.5
      Highest price PKR 259.3 216.9 352.1 466.6 486.1 399.6
      Lowest price PKR 159.4 114.0 152.0 265.2 379.9 287.0
      Break-up value PKR 298.2 240.8 253.9 235.3 219.1 195.1
      Price earning ratio (P/E) (x) 3.6 (11.5) 7.5 9.7 10.0 17.2
      Price to book Ratio (x) 0.3 0.2 0.2 0.4 0.5 0.5
      Dividend per share PKR 15.0 - 10.0 15.0 25.0 12.5
      Bonus share % - - 20.0 20.0 20.0 -
      Dividend payout (including bonus) % 24.2 - 44.3 45.5 64.4 57.1
      Dividend yield (including bonus) % 6.7 - 7.1 5.3 7.0 3.3
      Dividend cover ratio (including bonus) (x) 4.1 - 7.1 2.3 2.8 2.5 3.0

      Analysis

      The variation in ratios as compared to FY 2020 is because of the following:

      • Price earning ratio has improved due to increase in profitability for the year which is partially offset by increase in market value per share.

      • Breakup value of the company has improved due to the profit retained during the year.

      • Dividend payout and dividend yield percentages have increased vs FY20 due to declaration of cash dividend of PKR.15.0 per share in FY21 as compared to no dividend last year.

      • Dividend cover ratio has increased due to increase in EPS for the year.

    • Investment Ratios
      Assets 2021 2020 2019 2018 2017 2016
      Earning / (Loss) per share (basic & diluted) PKR 62.1 (13.8) 22.5 32.9 38.8 21.9
      Market value per share (Year End) PKR 224.3 158.2 169.6 318.3 387.4 375.5
      Highest price PKR 259.3 216.9 352.1 466.6 486.1 399.6
      Lowest price PKR 159.4 114.0 152.0 265.2 379.9 287.0
      Break-up value PKR 298.2 240.8 253.9 235.3 219.1 195.1
      Price earning ratio (P/E) (x) 3.6 (11.5) 7.5 9.7 10.0 17.2
      Price to book Ratio (x) 0.3 0.2 0.2 0.4 0.5 0.5
      Dividend per share PKR 15.0 - 10.0 15.0 25.0 12.5
      Bonus share % - - 20.0 20.0 20.0 -
      Dividend payout (including bonus) % 24.2 - 44.3 45.5 64.4 57.1
      Dividend yield (including bonus) % 6.7 - 7.1 5.3 7.0 3.3
      Dividend cover ratio (including bonus) (x) 4.1 - 7.1 2.3 2.8 2.5 3.0

      Analysis

      The variation in ratios as compared to FY 2020 is because of the following:

      • Price earning ratio has improved due to increase in profitability for the year which is partially offset by increase in market value per share.

      • Breakup value of the company has improved due to the profit retained during the year.

      • Dividend payout and dividend yield percentages have increased vs FY20 due to declaration of cash dividend of PKR.15.0 per share in FY21 as compared to no dividend last year.

      • Dividend cover ratio has increased due to increase in EPS for the year.

    • Activity/Turnover Ratios
      Assets 2021 2020 2019 2018 2017 2016
      Inventory turnover ratio (x) 16.88 14.93 13.06 13.84 14.36 11.99
      No. of days in inventory No 22.00 25.00 28.00 26.00 25.00 30.00
      Debtor turnover ratio (x) 6.83 6.25 5.77 5.73 5.61 5.05
      No. of days in receivables No. 54.00 58.00 63.00 64.00 65.00 72.00
      Creditor turnover ratio (x) 16.51 12.51 10.15 10.75 11.64 8.50
      No. of days in creditors No. 23.00 30.00 36.00 34.00 31.00 43.00
      Total asset turnover ratio (x) 3.94 3.43 3.27 3.30 2.98 2.65
      Fixed asset turnover ratio (x) 116.81 142.18 172.07 183.24 160.93 138.97
      Operating cycle No. 53.00 53.00 55.00 56.00 59.00 59.00

      Analysis

      The variation in ratios as compared to FY 2020 is because of the following:

      • Inventory turnover has increased as company is coverting its inventory into sales in a quicker time.

      • Debtors turnover has increased primarily due to increase in gross revenue by 9.4% whereas average debtors have increased by 0.15% only.

      • Creditors turnover has improved primarily due to prompt payments made to suppliers for purchases on credit.

      • Operating cycle has remained almost the same.

      • Total Asset turnover has improved due to more proportionate increase in sales than average total assets. Increase in sales is due to both positive volume and price variance.

    • Employee Productivity Ratio
      Assets 2021 2020 2019 2018 2017 2016
      *Production per Employee Metric Ton 416 411 412 467 447 405
      *Revenue per Employee PKR in Mn. 503 441 446 374 323 241
      Staff Turnover Ratio (x) 0.06 0.05 0.04 0.05 0.06 0.04
    • Non Financial Ratios
      Assets 2021 2020 2019 2018 2017 2016
      % of Plant Availability % 1.16 1.16 1.14 1.08 1.08 1.06
      *Customer Satisfaction Index % 70 70 71 66
    • Others
      Assets 2021 2020 2019 2018 2017 2016
      Spares Inventory as % of Assets Cost % 0.2 0.2 0.1 0.1 0.1 0.1
      Maintenance Cost as % of Operating Expense % 7.3 10.6 6.1 6.3 7.4 7.1
  • Latest Announced Dividend Payment

    Rate From To
    Rs. 10/- per share October 15, 2021 October 26, 2021

    Dividends Approved By BOM, Are Paid To Shareholders On The Basis Of Entitlement Determined On Book Closure Date. Shares Must Be Purchased And Duly Registered Before The Book Closure Date To Be Entitled To Receive The Dividend.

    Dividends Per Share Declared During Last Five Years:

    Year Total Dividend Declared
    2021 150%
    2020 -
    2019 120%
    2018 170%
    2017 270%

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