KARACHI: Pakistan State Oil (PSO) posted a profit after tax (PAT) of Rs5.03 billion and earnings per share (eps) of Rs18.50 for the first quarter (July-September) of this fiscal year.

The results were up 15 per cent from PAT at Rs4.35bn and eps at Rs16.10 for the corresponding quarter of last year. Sales recorded growth of 34pc to Rs259bn, from Rs194bn year-on-year.

Analysts attributed the improved earnings of 15pc to ‘sharp fall in finance costs and higher ‘other income’

A press release issued by PSO stated that the highest-ever quarterly sales were recorded in mogas and jet fuel; up by 30.1pc and 22.6pc, respectively, over the same period last year.

Considerable sales growth was also witnessed in high-speed diesel (HSD), liquefied petroleum gas (LPG), lubricants and liquefied natural gas (LNG) businesses with growth of 31.4pc, 71.0pc, 36.0pc and 49.9pc, respectively, over same period last year.

Furnace oil (FO) sales were down by 9.4pc in line with reduction in industry volumes partly due to low consumption by Gencos and partly due to higher LNG utilisation.

PSO continued to maintain its strong market leadership position with an overall liquid fuels market share of 55.8pc as of Sept 30.

“Higher sales and cost-effective borrowing resulted in 14.9pc growth in the company’s profit after tax,” the oil marketing company stated.

The company pointed out that the outstanding receivables as of Sept 30 stood at Rs282.0bn (June 30, 2017: Rs277.1bn) from the power sector, PIA and SNGPL against supplies of furnace oil, aviation fuels and LNG.

PSO was said to engage with relevant stakeholders for early realisation of outstanding dues. “Despite pending receivables and increasing international oil prices, PSO is committed to delivering value to its customers by managing its imports and refinery purchases effectively”.

Last month, PSO responded to the energy needs of the country by handling significantly higher volumes with its logistic partners to ensure there is no shortage of the fuel.

It was when other oil marketing companies reduced importing fuels due to an increase in international oil prices that made the trade commercially unviable. PSO, however, remained committed to supplying fuel despite incurring inventory losses.

The company stated that it welcomed the initiative of Ministry of Energy to deregulate high-speed diesel as it will create a competitive environment for 15 oil marketing companies and six additional ones pending with the Oil and Gas Regulatory Authority.

Published in Dawn, October 24th, 2017