Pakistan State Oil Company Limited (PSO) has posted Rs 4,689.798 million as profit after tax, translating an earning per share of Rs 27.34 for the year ended on June 30 as compared to Rs 7,524.701 million PAT and Rs 43.87 EPS in the corresponding period last year.
The board of management of the company, in its meeting held here on Tuesday, recommended a final cash dividend for the year at the rate of Rs 11 per share, ie 110 percent. This is in addition to the interim dividend of Rs 10, ie 100 percent already paid making a total cash dividend of Rs 21 per share, ie 210 percent.
In an information to Karachi Stock Exchange (KSE), it was said that the company's net sales increased to Rs 349.706 billion in the period under review against Rs 298.250 billion in the same period last year. The other operating income of the company surged to Rs 1,278.932 million in 2007 financial year as compared to Rs 950.850 million in 2006 financial year.
The profit before tax stood at Rs 7,121.980 million in the outgoing financial year against Rs 11,418.311 million earned in 2006 financial year. In a statement issued here on Tuesday, it was stated that the board of management of PSO reviewed the performance of the company for the financial year ended on June 30 and approved the audited financial statements for the year. BoM Chairman Pervaiz Kausar presided over the meeting.
The board observed that during the 2007 financial year, the company achieved good performance with a turnover, touching Rs 411 billion (6.8 billion dollars) compared with its Rs 353 billion a year ago, an increase of 17 percent.
Based on these results, the board announced a dividend of Rs 11 per share. Combined with the earlier interim dividends, aggregating Rs 10 per share, the total dividend for the year rose to Rs 21 per share, translating into a total payout of Rs 3.6 billion to the shareholders.
The first half of the review period saw a declining trend of international oil prices, resulting in heavy inventory losses to the industry in general and the company in particular. However, in the last two quarters, the trend reversed nullifying the negative impact to some extent. The earnings were also adversely affected by a substantial increase in financing cost on mounting dues from the government on account of subsidy on retail price of diesel as well as the full-year impact of 20 percent margin reduction.
Black oil industry consumption increased by 46 percent mainly due to higher off-takes of furnace oil by the power producers. White oil industry consumption remained subdued with a decline of two percent due to availability of alternate fuels and higher gasoline prices. Overall, PSO led the industry with a market share improvement from 65 percent last year to 69 percent, despite increasing competition.
PS0's presence with around 3,700 sites across the country, including over 1,600 new vision retail outlets and PS0 cards, continued to provide impetus to retail sales.
The company completed refurbishment of its lubricant-manufacturing terminal at Korangi, Karachi, which will further improve its performance in the lubricant business during the 2008 financial year.
PS0 continued using technology to provide conveniences to its customers. Under technological thrust, new initiatives and marketing alliances, the company introduced ATM and utility bill payment facilities, new fleet management solution for PSO card customers, new denomination of prepaid cards and GPRS and, V-SAT connectivity with retail sites. It also enhanced its point-of-sale terminal network to facilitate and automate business transactions to more than 1,300 retail sites.
As part of its corporate social responsibility, the company continued to support social, educational, health, sports and community causes. The company and its employees took active part in the relief efforts for the flood victims in Balochistan and sent consignments of relief goods and ensured smooth fuel supplies to the affected areas. Employees also contributed one-day salary to the President's Disaster Relief Fund.
During the year, the company participated in the oil and gas conference (OGCON), Ideas 2006, Expo 2007 and oil, gas and energy conference (POGEE) 2007. It continued its active role at national/international levels and Pakistan chapter of World Business Council for Sustainable Development was expanded with more members joining in.
The board acknowledged and appreciated the efforts and contributions by the dedicated PSO employees, dealers, contractors, vendors and other business partners, and hoped that the company would continue to take up business challenges in the future through its highly motivated team, superior services, innovations and growing customers' loyalty.
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