PSO ascends to new heights, asserting market dominance with record-breaking profits

KARACHI: Pakistan State Oil (PSO), the national energy icon, has showcased its unwavering determination and resilience by achieving remarkable milestones in the first quarter of the financial year 2023-2024.

In this period, PSO reported an unprecedented quarterly profit after tax of Rs 21.89 billion, resulting in impressive earnings per share of Rs 46.62. Additionally, PSO achieved its highest ever quarterly gross sales of Rs 976 billion.

During a meeting held on October 20, 2023, the company’s Board of Management (BoM) reviewed the group’s performance for the first quarter ended September 30, 2023. The group also posted its highest ever first quarter net profit after tax of Rs 23.99 billion translating in earnings per share of Rs 51.10.

Against the backdrop of galloping inflation, regressed growth, geopolitical tensions and a global increase in oil prices, the petroleum industry experienced a decline in product consumption. However, PSO navigated these challenges seamlessly, while upholding its commitment to nationwide fuel supply.

The company further consolidated its dominance in the white oil segment by increasing its market share by 4.3 percent, closing the quarter with a commendable 53.1 percent market share. Notably, PSO’s market shares in diesel and gasoline increased by 4.5 percent and 4.2 percent respectively, reaching 55.0 percent and 47.9 percent.

The black oil segment faced a challenging quarter with a 63 percent decline in sales due to low furnace oil-based power generation, however, PSO maintained its leadership in black oil segment with a market share of 29.6 percent at the end of the quarter.

In an effort to further strengthen the company’s robust supply chain and infrastructure, PSO rehabilitated 24 thousand tons of existing storages at Sihala and Zulfiqarabad during the period. Additionally, the construction of 91 thousand tons of new storages is currently underway at Faqirabad, Faisalabad and Mehmoodkot. Embracing a forward-looking approach, PSO utilised its digital capabilities to propel growth and enhance operational efficiency by successfully automating an additional 2 terminals at Mehmoodkot and Shikarpur, taking the total to 5.

PSO’s unwavering support for the nation is evident through its core value of caring and giving. During the period, the company contributed over Rs 30 million to various CSR initiatives focused on healthcare, education, environment, community building and disaster relief.

Acknowledging the challenges posed by mounting trade receivables, high borrowing costs, and escalating finance costs, the Board is actively engaged in settlement discussions with the pertinent authorities to address these concerns.

PSO remains steadfast in its commitment to enhance its financial and operational performance, promising to keep the wheels of the economy in motion.

The company aims to achieve this through a multifaceted approach, including digitization and automation, process re-engineering, bolstering operational reliability and capacity, enriching customer experience with value-added services, and generating shareholder value through long-term strategic projects and plans.

The management expresses sincere gratitude to all stakeholders including the Board of Management, the Government of Pakistan, Ministry of Energy (Petroleum Division), shareholders and employees for their continued support and trust.

Copyright Business Recorder, 2023