PSO earns Rs 4.6 billion PAT in nine months

The Board of Management (BoM) of Pakistan State Oil (PSO) reviewed the company''s performance for the nine months period from July to March of Financial Year 2016 (9MFY16) here Friday at PSO House. Musadik Malik presided over the meeting. The company reported a profit after tax (PAT) of Rs 4.6 billion for 9MFY16 as opposed to Rs 3.2 billion for 9MFY15. "The increase was mainly due to growth in sales volume and margins of white oil products revised in November 1, 2014 and reduction in operating and finance cost by 10 percent and 42 percent respectively," said a company statement.
However, it said, the increase was partially offset by decrease in black oil margins due to reduced price impact of black oil. "During the period under review, PSO continued to hold its market leadership position in the industry despite stiff market conditions with an overall market share of 55 percent," it said. Whereas market share of black oil products stood at 69 percent and market share of white oil products was 46 percent. A growth of 2.4 percent was witnessed in total liquid fuels sales volume over same period last year (SPLY), which was primarily driven by growth in sales volume of white oil and black oil by 3.9 percent and 0.9 percent respectively.
Major increase was witnessed in motor gasoline sales, which increased by 13.5 percent over SPLY amid lower local petroleum prices and increased motor vehicle population. PSO black oil sales volume increased by 0.9 percent despite 5.3 percent decrease in industry volumes, owing to increased availability of natural gas/R-LNG to power producers.
The period under review also marked major achievement for the company, when pursuant to long-term LNG Sale Purchase Agreement (SPA) signed in February 2016 with Qatar Liquefied Gas Company Limited2 (QG2), PSO received the first Q-Flex ship carrying approximately 3.4 million mmbtu of LNG from Qatar on March 1. LNG has proven to be a major game changer in the energy mix of Pakistan. PSO said that the outstanding receivables of Rs 224 billion (June 30, 2015: Rs 230 billion) from the power sector, PIA and SNGPL against supplies of FO, aviation fuels and LNG would be a challenge as international oil prices increase. "The management continues to work closely with Ministry of Water & Power and PIA for timely realisation of due payments against uninterrupted fuel supplies to support the power sector and airline operations," it said.