Pakistan State Oil Profit Falls 32% as Clients Delay Payments

Pakistan State Oil Ltd., the nation’s biggest fuel retailer, posted a 32 percent decline in third-quarter profit as some customers delayed payment of dues.

Net income fell to 3 billion rupees ($30.5 million), or 12.32 rupees a share, in the three months ended March 31 from 4.4 billion rupees, or 17.78 rupees a share, a year earlier, the Karachi-based company said in a stock exchange filing today. Gross sales climbed 5 percent to 300.9 billion rupees.

Pakistan State Oil, or PSO as it’s known, is owed 140 billion rupees by power companies, according to Global Securities Pakistan Ltd. Kot Addu Power Co., Pakistan’s biggest non-state power distributor, owes PSO 10 billion rupees, Hub Power Co., the second-largest private utility, 57 billion rupees, Karachi Electric Supply Co. 10.8 billion rupees and state-run Water & Power Development Authority 47.8 billion rupees as of March 23, Arif Shaikh, an analyst with Global Securities, said.

“Occasionally, clients do make interest payments on dues that crossed 6 billion rupees in the quarter to March 2012,” Shaikh said. “Even those interest payments on the dues have declined this time round.”

Pakistan State Oil shares fell 0.2 percent to 197.73 rupees, the most six days, at the close of trading in Karachi. They have gained 2.2 percent so far this year, compared with a 10.4 percent increase in KSE 100 Index.

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