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KARACHI: Board of Management of Pakistan State Oil (PSO) meeting Thursday at Karachi reviewed performance for year ended June 30, 2012, in which it achieved a major milestone by becoming Pakistan's first company with revenues exceeding a trillion rupees.

For the year ended June 30, 2012, PSO’s revenue exceeded Rs1,199 billion as compared to Rs 975 billion in FY11, representing 23 per cent growth.

It announced after tax earnings of Rs9.06 billion in FY12 as compared to Rs14.78 billion in last year.

Profitability was severely impacted by rapid devaluation of Pak rupee along with reduction in inventory gains. These losses absorbed improvement in margins of Furnace Oil and HSD along with recovery of financial income from power sector.

Earnings in FY12 are lower as compared to FY11 due to a deferred tax adjustment made in previous year amounting to Rs2.29 billion which had resulted from reinstatement of rate of turnover tax by tax authorities.

Further, financial cost resulting from accumulation of highest ever receivables continue to constrain both profitability and liquidity of PSO.

In period under review, industry's volumes for Black Oil reduced by 8 per cent, whereas, White Oil grew by 4 per cent reflecting increase in PMG consumption of 22 per cent while a decline of 1 per cent was recorded in HSD demand.

In spite of reduction in market size of HSD, PSO has been able to increase its market share from 54.9 per cent to 56 per cent. It also continued its overall domination of market with its share in Black Oil and White Oil segments standing at 78.1 per cent and 55.1 per cent respectively, thereby contributing to an overall market share of 65.4 per cent.

Based on this performance, the company’s Board declared a final cash dividend of Rs2.5 per share in addition to already paid interim dividend of Rs3 per share.

It was also decided that the company will issue 20 per cent bonus share for year ended June 30, 2012.

Over the past year, PSO introduced latest, technologically advanced and state-of-art anti-counterfeit solution with each retail size pack of lubricants called Secure Code.

An awareness campaign was also launched to raise mass understanding of this unique feature.

Board Members, while expressing confidence in PSO management showed increasing concern over rising balance of receivables which stand at Rs237 billion as on August 9, 2012.

This creates acute financial crunch on company as it struggles to meet its international and local obligations. It was noted this situation is not sustainable and presents a significant risk to PSO's ability to ensure availability of product.

PSO management continues to constantly pursue IPPs and government of Pakistan for recovery of its outstanding receivables, says press release of company.