PSO profit after tax increases

The profit after tax of Pakistan State Oil Company (PSO has significantly increased to Rs 2,487.309 million in the quarter ended September 30, 2011 as compared to Rs 809.864 million in the same quarter in 2010. The Board of Management of the company held here on Monday declared that the company''s earning per share has increased to Rs 14.50 in the period under review against Rs 4.72 in the same period last year.
According to the financial results sent to Karachi Stock Exchange, the company''s gross sales increased to Rs 278.509 billion in this quarter against Rs 201.962 billion in the same quarter last year. The company paid Rs 39.773 billion as sales tax and IFEM in this period against Rs 31.600 paid in the same account in the same period last year.
The company''s cost of products sold increased to Rs 231.057 billion in this quarter against Rs 163.649 billion in the same quarter last year. The company''s other operating income increased to Rs 487.421 million against Rs 365.031 million while operating expenses increased to Rs 3.288 billion against Rs 1.951 billion.
The company in its statement issued here on Monday said that the increase in earnings was mainly due to a reduction in finance cost and improvements in margins as compared to last year. During the period under review PSO''s White Oil sales grew to 1.3 million MTs in comparison to 1.2 million MTs during the same period last year. This was due to the increase in motor gasoline demand caused by an increase in motor vehicles sales, CNG loadshedding, increased usage of generators due to frequent power outages and a significant price gap between motor gasoline and HSD.
On the other hand, Black Oil sales remained steady at 1.8 million MTs. Overall PSO''s market share in the Black Oil and White Oil segments stood at 77.1 percent and 52.5 percent respectively, thereby contributing to an overall market share of 64.4 percent. During the period under review PSO successfully launched the first ever Generator Oil designed for the Pakistani market.
The board members showed concern over the ever rising circular debt remains which stood at Rs 153.5 billion as of 30th September, 2011. PSO''s management is making all possible efforts to reduce the impact of the financial costs through efficient management of funds. Furthermore, PSO continues the constant pursuit for recovery of outstanding receivables from the IPPs as well as the Government of Pakistan.