February 23, 2007	Friday	Safar 5, 1428

KARACHI, Feb 22: The board of management of the Pakistan State Oil (PSO) on Thursday announced a first interim cash dividend of Rs6 per share, translating into a cash payout of Rs1,029 million to its shareholders.

The board, while reviewing the performance and accounts of the company for the first half of year 2006-07 on Feb 22, observed that during the review period of July 1 to Dec 31, 2006, the industry off-takes of black oil were 3,515,000 tons compared to 1,998,000 tons in the corresponding period last year.

The off-takes of white oil, however, were lower by two per cent i.e. 4,637,000 tons as compared to 4,725,000 tons last year.

The overall off-take of all fuel products was 20 per cent higher than last year.

PSO’s sale of black oil was 3,474,000 tons, which was 76.4 per cent higher than 1,969,000 tons in the previous year. In white oils, although the industry sales declined, PSO successfully marketed 2,743,000 tons as compared to 2,710,000 tons last year.

As such PSO improved its market share in motor gasoline from 45.2 per cent to 46.3 per cent, in high speed diesel from 57.5 per cent to 60.5 per cent, and in kerosene oil from 59 per cent to 71.5 per cent.

PSO’s market share in fuels increased from 65 per cent to 67.4 per cent.

According to a press release, the profitability of oil marketing companies in the first half of the year was adversely affected by a number of factors, i.e. inventory losses due to almost 20 per cent lower prices of oil in the international market; lower margins regime since March 2006 and very high financing cost due to huge outstanding receivables from the government. Concerted efforts are continuously being made for the recoveries from the government to lower the impact on profitability and cash flow.

As such, despite higher sales volumes and record sales revenue of Rs198 billion, higher by Rs44 billion from last year, the company’s profits dropped significantly as compared to last year when it had the benefit of inventory gains as oil prices were continuously increasing in that period.

PSO’s profit before and after tax this year were Rs1.8 billion and Rs1.1 billion, respectively, as compared to Rs5.3 billion and Rs3.4 billion last year.