ANALYSIS OF FINANCIAL POSITION

For the year ended June 30, 2021

Rupees in Millions
202120202019201820172016
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
202120202019201820172016
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
Q1Q2Q3Q4FY 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
202120202019201820172016
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.