Oil & Gas Marketing Companies: PAKISTAN STATE OIL COMPANY LIMITED - Nine Months Ended March 31 2004

During July 2003 to March 2004, (9M 2003-04), the overall financial and operating results were lower as compared to the same period last year (SPLY). Net sales in terms of value was posted at Rs 111.604 billion as compared to Rs 130.919 billion booked in the SPLY.
The main cause for the decline in sales was due to decline in fuel oil sales.
The directors reported that during the review period the fuel oil consumption in the country was lower by 54% over last year's. Despite an impressive growth of 5.2% in white oil consumption, the POL industry consumption decline by 21%.
The govt would like to have more reliance on indigenous sources, which generates substantial saving's in import bill.
This strategy of the govt succeeded because of further improvement in the natural gas availability and hydel power generation.
During the review period the company recorded nearly 20% growth in the Motor Gasoline, against a growth of 15% in the industry consumption resultantly the company market share enhanced to 44% against 42% for the last corresponding period.
HSD (High Speed Diesel) sales also displayed an impressive picture and the company increased its market share to 60.3%.
Another 148 NocoVision outlets were added to the company's retail network bringing the total to 861. CNG facility was installed at 25 new outlets expanding the network to 97.
As a part of corporate social responsibility initiative, the company introduced Green XL diesel and has exclusively patented to "Greenburn Combustion Technology" fuel additive for Pakistan.
The Company's Gross profit at Rs to 6.343 billion and operating profit at Rs 4.360 billion shared decline by 9.8% and 13.7% respectively over the figures of SPLY.
The Earning Per Share (EPS) declined from Rs 19.01 to Rs 17.60 per share during the 9 months under review. The two interim dividends aggregate to Rs 10 as compared to Rs 9 per share.
In the field of information technology the company is well geared to make entry in the ERP regime. The website could not be accessed for reasons not known.
On the other hand the report under review does not give full name of the company, even only once. It simply gives Pakistan State Oil or PSO.

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Performance Statistics               (Million Ruppees)

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Balance Sheet --                               -As At-

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                                 March 31      June 30

                                     2004         2003

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Share Capital-Paid-up:           1,715.19     1,715.19

Reserves:                       12,574.21    11,348.21

Shareholders Equity:            14,289.40    13,063.40

L.T. Debts:                          2.38         4.75

Deferred Liabilities:              875.63       859.26

L.T. Deposits:                     591.32       494.32

Current Liabilities:            22,461.83    17,916.26

Fixed Assets:                    7,104.09     6,436.59

L.T. Investments-held as

 Available for Sale:             1,901.93     1,980.05

L.T Loans, Advances & Receivables  950.40     1,046.96

L.T Deposits & Prepayments:         77.74        54.05

Deferred Tax:                      291.50       373.50

Current Assets:                 27,894.90    22,446.84

Total Assets:                   38,220.56    32,337.99

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Profit & Loss A/c For the

 Nine Months Ended          March 31 2004         2003

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Net Sales:                     111,604.27   130,919.35

Gross Profit:                    6,342.68     7,036.31

Transportation (Expense):         (153.75)    (125.02)

Administrative &

 Marketing (Expense):           (1,251.69)  (1,353.61)

Depreciation:                     (577.10)    (504.88)

Operating Profit:                4,360.15     5,052.80

Financial (Charges):              (135.43)    (221.10)

Other Income (Charges)-Net:        180.58     (150.63)

Profit Before Taxation:          4,405.31     4,681.07

Profit After Taxation:           3,019.30     3,261.16

1st Interim (Dividend)

 @ Rs 7/- (2003: Rs 6/-):       (1,200.63)  (1,029.11)

2nd Interim (Dividend)

 @ Rs 3/- (2003: Rs 3/-):         (514.56)    (514.56)

Earnings Per Share (Rs):            17.60        19.01

Share Price (Rs) on            14.07.2004:      269.00

Financial Ratios

Price/Earning Ratio:                15.28            -

Book Value of Share (Rs):           83.31        76.16

Debt/Equity Ratio:                  0:100        0:100

Current Ratio:                       1.24         1.25

Gross Profit Margin (%):             5.68         5.37

Net Profit Margin (%):               2.70         2.49

R.O.A (%):                           7.90        10.08

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