KARACHI: Pakistan State Oil’s (PSO) after-tax profitability plunged to Rs6.9 billion during 2014-15 from Rs21.8bn a year earlier due to inventory losses on account of sharp fall in crude prices, increase in finance cost due to prevailing circular debt crisis and less receipt of interest from power sector.

The company announced a final cash dividend of Rs4 per share (equivalent to 40 per cent) in addition to an earlier interim cash dividend of Rs6 per share (60pc). The total cash dividend for 2014-15 stands at Rs10 per share.

According to a notification from the Ministry of Petroleum and Natural Resources (MPNR), Sheikh Imranul Haque took over the charge as managing director and CEO of PSO on Tuesday. He reviewed and approved the performance of the company for 2014-15.

In FY15, PSO continued to dominate the market with its share in the black oil and white oil segments standing at 66.6pc and 49.8pc, respectively, thereby contributing to an overall market share of 56.8pc.

The company’s sale volume of motor gasoline grew by 18.5pc in FY15 over the last year due to upsurge in its demand in view of falling petrol prices and shortage of CNG. Additionally, high-speed diesel (HSD) sales also witnessed an increase of 0.9pc.

During the year, the company’s profitability was adversely affected by the sharp decline of 46pc in the Opec basket price of crude oil, from $109 per barrel in July 2014 to $59 in June 2015.

This significant decline in crude oil prices together with drop in black oil volumes by 12pc resulted in a 21pc reduction in the sales turnover to Rs1.114 trillion compared to Rs1.410tr in FY14.

Published in Dawn, September 2nd, 2015

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