Pakistan State Oil (PSO) total dividend in the year ended June 30, 2004 exceed previous year's pay out following a significant increase in the sales and profits for the period.
The Board of Management, PSO, on Thursday reviewed the financial performance of the country's largest oil marketing entity for the year ended 30 June 2004. Pervaiz Kausar, BoM Chairman, presided over the meeting at company headquarters PSO House.
The board noted that PSO sales revenue during the period stood at Rs 195 billion. Despite the major decline in FO (furnace oil) sales volume to the tune of 2.3 million tons, the company earned a remarkable all-time high profit after tax of Rs 4.2 billion, up by 4.5 percent from the preceding year.
Had the company sold the same FO volume as sold in the preceding year, the company would have recorded much higher revenue as well as profits.
Based on the phenomenal financial performance, the Board of Management announced a cash dividend of Rs 7.50 per share (75pc) to its shareholders, resulting in total dividend of 175pc for the whole year, as against 160pc cash dividend declared during the preceding year.
ENCOURAGING TREND: The board observed that in FY04, the business environment in Pakistan gathered greater momentum mainly due to a sharp pick-up in industrial production and a strong upsurge in investment. This depicts an encouraging trend for the future also.
During FY04, white oil products registered a growth of 5.7 percent over last year, which was contributed primarily by an increase in consumption of Mogas and HSD to the tune of 14.7 percent and 4.8 percent respectively. Kerosene, however, as expected showed a decline of 12.7 percent due to availability of cheaper fuel alternatives such as natural gas and LPG.
However, overall POL consumption of Pakistan was 14.2 million tons, thus registering a drop of 14 percent over last year. Sharp decline was primarily caused by an unprecedented drop in black oil consumption, which was mainly due to 42 percent decline in FO consumption.
In FY04, PSO successfully enhanced its share in white oil owing to sound and aggressive initiatives. The company gained 1.5 percent market share in Mogas bringing the total to 44 percent, and thus regaining its market leadership position after several years. In HSD, the company increased its participation to around 61 percent (an increase of 0.5pc). Similarly, JP-1 share stood at 63 percent, while SKO participation went up to 74 percent. Despite stiff competition in fuel oil, the company's market share stood at over 73 percent.
PRUDENT STRATEGIES: The Board noted the unprecedented performance of the company, which was mainly due to prudent strategies pursued by the management, specifically in the area of marketing where innovative and novel products such as Green XL Plus Diesel, PSO Prepaid Cards and Retail Automation Assurance programmes were launched.
The Board appreciated the remarkable performance of the company and anticipated that with the same momentum, steady progress in overall operations and further prudent investment in strategic projects would be achieved.
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