PSO - Fiscal Year Q1 Earnings
PSO posted record profits but given the high inflation what does it actually mean?
Pakistan State Oil - PSO recently posted its quarterly earnings with a high leap in its EPS for its consolidated Income Statement. This coincides with the period that saw the ceasefire between Iran and the US break that pushed Oil prices really high in Pakistan from which PSO have really benefitted, after have a problematic 4th Fiscal quarter as they saw a writedown and major inventory losses.
The EPS has jumped to 62.66, which is a massive jump, 40,23 rupees from September 25 to September 26. However, Pakistan has been beset by inflation in this time period because of its reliance on oil imports that impact the cost base of the whole economy. The question we want to answer is if this metronomical increase in the EPS of PSO been driven by inflation or does it exist regardless of inflation.
Utilizing the National Transport Index as a measure of inflation that closely tracks specifically changes in transportation cost, the index rose from 317.05 in September 2025 to 389.87 in September 2026 - which translates the EPS to 50.95, which means that the real jump in EPS is still 28.52 rupees!
Clearly the jump in earnings from PSO is legit and not tainted by increased inflation over the same time period.
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