KARACHI - Pakistan State Oil (PSO) Friday announced 3QFY16 loss of Rs2.1 billion (LPS Rs7.9) as against loss of Rs1.0 billion (LPS Rs3.8) in the same period last year.

Revenue of the company declined by 23% YoY to Rs135b in 3QFY16, led by sharp fall in prices of petroleum products. Prices of furnace oil (FO) declined 41% YoY, while that of Motor Gas (MOGAS) and High Speed Diesel (HSD) were down 13% YoY.

Sharp fall in oil prices have offset 3% YoY volumetric growth in oil sales during the quarter. FO volumes of the company improved by 12% to 1.5m MT whereas MOGAS and HSD volumes declined by 6.9% YoY to 0.6m MT and 7.4% YoY to 0.8m MT, respectively.

PSO reported gross loss of Rs520m in 3QFY16 as against gross profit of Rs1.5b in the same period last year, likely due to inventory losses in light of falling oil prices during the quarter.

Other income of PSO declined to Rs1.6b, down 37% YoY, due to lower penal income received from Independent Power Producers (IPPs).

Finance cost fell by 52% to Rs1.4b during the quarter following aggressive monetary easing by central bank of Pakistan (SBP) and lower working capital requirement amid falling oil prices, market analysts observed.