Karachi: Pakistan State Oil or PSO Profit has seen a decline of around 50% as compare to the amount recorded in the same tenure previous year.
PSO profit fell by 50% and reached at Rs 4.429 billion during the 6 months (July-December 2018). In addition, Gross sales reached at Rs 662.726 bn after increasing by 1.42 pc.
Pakistan State Oil revealed that the challenging economic trend fuelled by rupee devaluation and adverse balance of payments position resulted in the negative growth. However, the decline in PSO profit is attributable to 10.47% increase in cost of goods sold, followed by a 7% rise in operating costs and a mammoth 117% jump in the total finance costs incurred during the period under review.
PSO further elaborated that key reasons for reduction in profit as compared to same period last year are lower gross profit mainly due to dip in sales volume of black and white oil, higher inventory loss due to reduction in international oil prices, increase in finance cost due to sharp hike in discount rate by the State Bank of Pakistan and higher average borrowing levels vs same period last year, lower interest income from power sector and foreign exchange loss on account of rupee devaluation.