KARACHI: The country’s largest energy company, Pakistan State Oil (PSO) continues to gain momentum and outperform the industry reporting the highest ever half year gross revenue of Rs 1.12 trillion and profit after tax of Rs 32.2 billion (first half year of 21: Rs 9.5 billion). The net profit translated into a healthy earning per share of Rs 68.56 against Rs 20.28 in the first half of 2021.
The PSO’s Board of Management reviewed the performance of the company together with its subsidiary Pakistan Refinery Limited (PRL) for the first half of the financial year 2021-22 (first half of FY22) during the meeting held in Islamabad on February 11, 2022. On a consolidated basis, the group collectively posted a net profit after tax of Rs 32 billion (first half FY21: Rs 9.3 billion).
Chairman, Board of Management, PSO, Zafar I Usmani said “This is a momentous occasion, we have once again made history, delivering strong financial performance in the first half of fiscal year 2021-22. Our operational excellence, financial strength and discipline underpin the transformation of the company. While mounting receivables continue to pose a serious threat to PSO’s financial health, we are actively pursuing the matter with the concerned authorities. Going forward, we have a robust strategy in place keeping our customers at its core and are well-positioned to expand our portfolio in-line with our future growth and diversification strategy.”
PSO has been on a steady growth trajectory as the company’s profits increased by 238 percent over the same period last year. The company’s strong operational performance and strategic thrust is reflected in its market share which rose by 340 basis points over the same period last year.
The PSO continued to outperform the market, leading the downstream sector with volumetric growth of 20.8 percent in liquid fuels against the industry’s growth of 12.3 percent, capturing around 48 percent share of white oil and 60 percent of black oil markets of the country.
Major contributions came from motor gasoline, high speed diesel and furnace oil, in which the company achieved volumetric growth of 15.5 percent, 18.3 percent and 30.4 percent against industry’s growth of 7.9 percent, 15.2 percent and 14.1 percent, translating into market shares of 44.0 percent, 48.9 percent and 60.1 percent against 41.1 percent, 47.6 percent and 52.6 percent as of the same period last year respectively.
Managing Director and CEO, PSO, Syed Taha said “Our half-year results further reinforce the company’s growth story and our strong standing as the nation’s energy lifeline. I am extremely proud of our teams, who have adapted quickly to the evolving operating environment, while delivering on our long-term strategy. We have ambitious plans to provide innovative and environmentally friendly products and services to our customers, keeping sustainability at the heart of our operations and a steadfast focus on maintaining high levels of safety, quality and customer experience.”
The PSO continued to boost innovation and increase its digital capabilities by embracing technology to drive growth and enhance efficiency. The company made significant strides on its journey of digital transformation and established a centralized command and control system as part of its robust digitalization strategy. This initiative will streamline the supply chain by connecting operational locations, retail outlets and logistics to the system for data gathering, monitoring, analyzing and controlling the company’s value chain nation-wide.
PSO increased the reliability, availability, efficiency and capacity of its infrastructure to meet the country’s growing energy needs by adding a capacity of 55 thousand tons to its storages. During the first half of FY2022, PSO continued to deliver on its promise of bringing modern, digitally-enabled fuel retail convenience to customers and communities with the opening of 20 new stations nationwide.
The company further strengthened its business with the signing of MoUs of strategic importance to fortify sustainability and secure the energy value chain including those with Frontier Works Organization and Pakistan Railways.
As a responsible corporate citizen, PSO, through its PSO CSR Trust extended support of approximately Rs 90 million in the fields of healthcare, education and community-building. The company also continued its nationwide campaign of inoculating citizens against Covid-19, administering more than 200,000 doses nationwide.
The Board expressed concern over mounting trade receivables, noting an increase of Rs 77.7 billion in receivables from Sui Northern Gas Pipelines Limited compared to June 30, 2021. The matter is being actively pursued with the concerned authorities for settlement.
Copyright Business Recorder, 2022
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