Pakistan State Oil (PSO), the leading oil marketing company of Pakistan, convened its Board of Management (BoM) meeting to review the company's performance during the nine months of fiscal year 2019-20 which concluded on March 31, 2020.
According to the details released by the company here on Thursday, despite serious challenges faced by the economic and business world amid Covid-19 outbreak, PSO's bottom line remained positive. The profitable performance was achieved by it through re-gaining its market share over same period last year (SPLY) and by maintaining growth over and above the industry.
PSO's market share increased by 2.4 percent in MOGAS and 5.8 percent in HSD. The overall market share of White Oil increased by 3.8 percent during 9MFY20 as compared to the same period last year.
PSO CSR Trust stood firm in the face of the calamity. To initiate several projects such as food drive and health care programmes, Rs71 million was contributed by the Trust to various organisations including Rs50 million to the Prime Minister's Covid-19 Relief Fund.
Data revealed that the PSO's Profit After Tax (PAT) during the period ended March 31, 2020 amounted to Rs3 billion (9MFY19: Rs5.9bn). A significant drop in International Oil prices in March 2020 (Dated Brent from $52/bbl to $18/bbl from March 2 to March 31, 2020) and its related impact on net realisable value of inventory in hand by PSO.
In addition, reduced consumption of petroleum products due to the country-wide lockdown, increase in Finance Cost due to higher receivables owing to defaults in payments by SNGPL and higher interest rates and continued economic slowdown impacted the company's profitability.
During the period PSO increased its shareholding in Pakistan Refinery Limited (PRL) from 52.68 percent to 60 percent by acquiring 34.1 million additional shares. During 9MFY20 PRL incurred a loss after tax of Rs6.8 billion (9MFY19: Rs3.5 billion) as a result of inventory losses due to international crude oil dynamics, depressed refining margins and higher finance cost. On a consolidated basis, the group incurred a net loss of Rs4.4 billion for the period ended July to March 20.
PSO with a purpose to manage the sensitive supply chain of country procured around 40 percent of local refinery production while 49 percent of industry imports were also managed by the company.
PSO being a dynamic company is focusing on automation of its operations at depots/installations and retail outlets. Furthermore, 26 New Vision Retail Outlets were added in company's retail network and 700 OGRA standard compliant Tank Lorries were inducted in the company's fleet during the period. The company also added 17 new Shop Stops to its network.
Liquidity remained a key concern for the company and will pose formidable challenge in the future as well, especially in wake of Covid-19 and related economic challenges impeding growth. PSO's receivables from power sector declined by Rs15.6 billion while on the other hand receivables from SNGPL increased by Rs32.4 billion.
Regardless of the challenging socio-economic landscape, PSO is determined to continue its untiring efforts to further increase its market share with sustainable profitability, company added.
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