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PSO profit jumps to Rs10.3bn

Updated August 16, 2016

KARACHI: The board of management (BoM) of Pakistan State Oil (PSO) on Monday announced a final cash dividend of Rs7.5 per share for the year ended June 30, 2016. The company reported a profit-after-tax of Rs10.3 billion during the year as compared to Rs6.9bn the previous year.

The earnings per share stood at Rs37.81 in comparison to Rs25.53 last year due to growth in sales volume and margins of white oil products revised in Nov 1, 2014 and reduction in operating and finance cost by 10pc and 35pc respectively.

However, the said increase was partially offset by decrease in black oil margins due to reduced price impact of black oil.

A growth of 3.4pc was witnessed in overall sales volume of liquid fuels as compared to last fiscal year due to a growth in sales volume white oil and black oil by 4.1pc and 2.7pc respectively. Major increase was witnessed in petrol with rise of 9.3pc over the last fiscal year amid lower local petroleum prices and increased motor vehicle population. PSO’s black oil sales volume increased by 2.7pc; whereas industry volumes declined by 3.1pc owing to increased availability of natural gas/RLNG to power producers.

The outstanding receivables of Rs233bn (June 30, 2015: Rs230bn) from the power sector, PIA and SNGPL against supplies of furnace oil, aviation fuels and liquefied natural gas (LNG) continues to put pressure on already constrained liquidity position and would be a challenge as international oil price increases.

The company maintained its market leadership position with an overall market share of 56pc (FY15: 56.8pc, despite stiff market conditions. Market share of black oil products was 0.6pc (FY15: 66.5pc) and white oil products was 46.8pc (FY15: 49.8pc).

Published in Dawn, August 16th, 2016