Pakistan Sate Oil (PSO) announced its FY11 results which were quite in line with our expectations as
far as various heads in profit and loss account. However, the EPS of Rs86/sh, showing a 63% increase
from prior year, was way beyond our expectations and was caused by tax reversals that are normally
not in the knowledge of the analysts.
The major reason behind the unexpected results demonstrated by the highly augmented EPS of
Rs86.17/sh is the taxation amount of Rs3.19bn which declined by 64% from prior year. The cause of
this huge decline is the losses suffered by PSO in the past which were reversed in FY11.
The company reported net sales of Rs974bn being 10% higher from the prior year sales of Rs877bn.
This increase was mainly attributable to the price hikes in petroleum products viz. HSD, FO, MOGAS
etc. from which the company tend to benefit.
far as various heads in profit and loss account. However, the EPS of Rs86/sh, showing a 63% increase
from prior year, was way beyond our expectations and was caused by tax reversals that are normally
not in the knowledge of the analysts.
The major reason behind the unexpected results demonstrated by the highly augmented EPS of
Rs86.17/sh is the taxation amount of Rs3.19bn which declined by 64% from prior year. The cause of
this huge decline is the losses suffered by PSO in the past which were reversed in FY11.
The company reported net sales of Rs974bn being 10% higher from the prior year sales of Rs877bn.
This increase was mainly attributable to the price hikes in petroleum products viz. HSD, FO, MOGAS
etc. from which the company tend to benefit.
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