The Pakistan State Oil (PSO) has reported a profit after tax of Rs 10.3 billion as compared to Rs 6.9 billion reported during the same period of last year.
The earnings per share stood at Rs 37.81 compared with Rs 25.53 of last year. The increase is mainly due to growth in sales volume and margins of white oil products revised on November 1, 2014 and reduction in operating and finance cost by 10 per cent and 35 per cent respectively. However, the increase was partially offset by decrease in black oil margins due to reduced price impact of black oil.
A meeting of the PSO Board of Management was convened on Saturday August 13, 2016 at the company’s head office at the PSO House to review the company’s performance for the fiscal year ended June 30, 2016. The meeting was chaired by Musadik Malik.
PSO continued its market leadership position with an overall market share of 56.0 per cent (2014-15: 56.8 per cent), despite stiff market conditions. Market share of black oil products was 0.6 per cent (FY15: 66.5%) and of white oil products was 46.8 per cent (FY15: 49.8%).
A growth of 3.4 per cent was witnessed in overall sales volume of liquid fuels compared with the last fiscal year, which was primarily driven by growth in sales volume of white oil and black oil by 4.1 per cent and 2.7 per cent respectively.
Major increase was witnessed in motor gasoline sales, which increased by 9.3 per cent over the last fiscal year amid lower local petroleum prices and increased motor vehicle population. The PSO’s black oil sales volume increased by 2.7 per cent; whereas industry volumes declined by 3.1 per cent, owing to increased availability of natural gas and R-LNG for power producers.
The outstanding receivables of Rs 233 billion (June 30, 2015: Rs 230 billion) from the power sector, PIA and SNGPL against supplies of furnace oil, aviation fuels and liquefied natural gas (LNG) continue to put pressure on the already constrained liquidity position and will be a challenge as international oil prices increase.
The management continues to work closely with the Ministry of Water and Power and PIA for timely realisation of due payments against uninterrupted fuel supplies to support the power sector and the Airline’s operations.
Based on the performance of the company, the BoM has announced final cash dividend of Rs 7.5 per shares i.e. 75 per cent.
The management of the company expressed gratitude to its shareholders, customers, business partners and other stakeholders for their trust in the company and the government of Pakistan, especially the Ministry of Petroleum and Natural Resources.