Pakistan State Oil Co. (PSO), the nation’s biggest fuel retailer, said third-quarter profit doubled after gains in furnace oil prices.
Net income rose to 4.4 billion rupees ($48.4 million), or 25.60 rupees a share, in the three months ended March 31, from 2.1 billion rupees, or 12.40 rupees, a year earlier, the Karachi-based company said in a statement to the Karachi Stock Exchange today. Sales rose 22 percent to 286.6 billion rupees.
“The price of furnace oil rose 26 percent compared to the same quarter last year,” Sana Abdullah, a research analyst for IGI Finex Securities Ltd., who has a buy recommendation on the stock, said before the earnings announcement. “The margins on high-speed diesel and petrol also increased.”
Furnace oil accounts for 56 percent of the company’s gross profit, while high-speed diesel and gasoline contribute 30 percent and 13 percent, respectively, Abdullah said.
Pakistan State Oil shares rose 2.4 percent, the most since Feb. 7, to 252.75 rupees at the close on the Karachi Stock Exchange. The stock has gained 11 percent this year.
The company plans to pay a midyear cash dividend of 3 rupees a share, according to the statement.
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