Financial Highlights | Pakistan State Oil

Investors

ANALYSIS OF FINANCIAL POSITION

For the year ended June 30, 2021

Rupees in Millions
	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

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.

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

- 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.

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

- 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.

ANALYSIS OF FINANCIAL PERFORMANCE

For the year ended June 30, 2021

Rupees in Millions
	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

For the year ended June 30, 2021

Rupees in Millions
	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

For the year ended June 30, 2021

Rupees in Millions
	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.