The Board of Management (BoM) of Pakistan State Oil (PSO) met last Saturday at PSO House to review the company's performance for Fiscal Year 2015-16. The meeting was chaired by Musadik Malik. During the period under review, PSO continued its market leadership position with an overall market share of 56.0 percent (FY15: 56.8 percent), despite stiff market conditions. Market share of Black Oil products was 0.6 percent (FY15: 66.5 percent) and White Oil products was 46.8 percent (FY15: 49.8 percent).
A growth of 3.4 percent was witnessed in overall sales volume of liquid fuels as compared to last fiscal year, which was primarily driven by growth in sales volume of White Oil and Black Oil by 4.1 percent and 2.7 percent, respectively.
Major increase was witnessed in Motor Gasoline sales, which increased by 9.3 percent over the last fiscal year amid lower local petroleum prices and increased motor vehicle population. PSO's Black Oil sales volume increased by 2.7 percent; whereas industry volumes declined by 3.1 percent, owing to increased availability of natural gas / R-LNG to power producers.
During the year, the Company has reported a Profit after Tax of Rs 10.3 billion as compared to Rs 6.9billion registered last year. The earnings per share stood at Rs 37.81 in comparison to Rs 25.53 last year. The increase is 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 35 percent, respectively. However, the said increase was partially offset by decrease in Black Oil margins due to reduced price impact of black oil.
The outstanding receivables of Rs 233 billion (June 30, 2015: Rs 230 billion) from the power sector, PIA and SNGPL against supplies of Furnace Oil, Aviation Fuels and Liquefied Natural Gas (LNG) continues to put pressure on already constrained liquidity position and will be a challenge as international oil price increases. 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.
Based on the performance of the company, the BoM has announced final cash dividend of Rs 7.5 per share ie 75 percent. The management of the company expressed gratitude to its shareholders, customers, business partners and other stakeholders for their trust in the company and to the Government of Pakistan, especially the Ministry of Petroleum and Natural Resources for their continuous guidance and support. The Managing Director thanked team PSO for their ceaseless efforts to ensure uninterrupted supplies of fuel despite facing challenges. -PR