Feb. 9 (Bloomberg) -- Pakistan State Oil Co., the nation’s biggest fuel retailer, posted a 67 percent decline in second-quarter profit because of exchange losses after the rupee declined against the U.S. dollar.
Net income fell to 2.1 billion rupees ($23 million), or 12.22 rupees a share in the three months ended Dec. 31 from 6.3 billion rupees or 36.86 rupees a share, a year earlier, the Karachi-based company said in a stock exchange filing today. Sales rose to 297.2 billion rupees from 225.1 billion.
The Pakistani rupee fell 2.8 percent against the U.S. dollar in the three months ended Dec. 31, the steepest quarterly decline in over three years, according to Bloomberg data. The company’s operating expenses more than doubled to 4.5 billion rupees because of the exchange loss, said Atif Zafar, research analyst at JS Global Capital Ltd. who has a “buy” recommendation on the stock.
Net income also fell because the company received a one-time tax refund in the second quarter last year, inflating profit. The government refunded 2.8 billion rupees to Pakistan State Oil last year after a levy on fuel distributors was lowered.
Pakistan State Oil shares fell 4 percent to 252.79 rupees at the 3:30 p.m. local time close at Karachi Stock Exchange, the steepest decline in over three months. The share has gained 11 percent this year.
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