KARACHI: During the first half of fiscal year 2020-21 Pakistan State Oil (PSO) earned a net profit after tax of Rs 9.5 billion, an increase of 48 percent compared to the same period last year despite the challenges posed by the pandemic.
PSO’s Board of Management (BoM) reviewed the performance of the company together with its subsidiary Pakistan Refinery Limited (PRL) for the first six months of the financial year 2020-21 (1HFY21) during the meeting held at PSO House, Karachi on February 17, 2021.
During the period under review, PSO further consolidated its position as the market leader and outperformed the industry. The company registered a staggering volumetric growth of 13.3 percent in the liquid fuels with market share of 46.4 percent. Mogas sales witnessed a volumetric growth of 14.2 percent, with market share soaring by 2 percent which stood at 41.1 percent. Similarly Hi-Cetane Diesel also recorded an astounding volumetric growth of 19.5 percent with market share of 47.6 percent, a market share increase of 2.7 percent. White oil volumes grew by 10.1 with a market share of 45.1 percent. While, Black oil volumes also grew by of 27.8 percent.
Leading the sustainable energy revolution in the country, PSO became the first OMC to upgrade Pakistan’s fuel standard from Euro 2 to Euro 5 and launched Hi-Octane 97, Mogas and Hi-Cetane Diesel accordingly. The company also commissioned its first electrical vehicle charging unit in Islamabad under the brand name ‘Electro’ in July 2020. PSO further enhanced its infrastructure with development and rehabilitation of 44,000 metric tons of POL storage as well as addition of 16 new vision retail outlets and 15 new convenience stores to its retail network.
During the period under review, Pakistan Refinery Ltd improved its bottom line and reported a profit of Rs 85 million vs. a loss of Rs 1.7 billion. PRL also managed to resume refinery operations swiftly after the disruption caused by damaged intra-city pipelines owing to heavy rainfall and flooding in August 2020.
On a consolidated basis, the group achieved a net profit of Rs 9.3 billion vs. Rs 4.3 billion in 1HFY 20. Multiple factors, including savings in sulphur price differential, reduced finance costs, and exchange gain also contributed significantly to the positive results.
Based on the exceptional performance of the company during the period the Board approved a cash dividend of Rs 5 per share translating into a cash payout of Rs 2.35 billion. These results demonstrate PSO’s agility and strength across its diverse portfolio. As the business environment continues to evolve, the company remains committed to sustainable growth and profitability while creating value for the shareholders.
The management expressed sincere gratitude to all stakeholders including its BoM, GOP, Ministry of Energy, and the company’s shareholders for their continued support and guidance.—PR
Copyright Business Recorder, 2021