ISLAMABAD: Pakistan State Oil (PSO)-the country's leading state- owned oil marketing company is giving tough time to competitors with dominating share of 63 percent in market.
According to six months performance report the company's black oil and white oil stand at 75% and 53% respectively during the six month period ended December 2013.
During this period, the company's sales of furnace oil and motor gasoline grew by 13% and 15% respectively and a decline of 6.4% in sale of high speed diesel during the first quarter was followed by a growth of 3.5% during second quarter resulting in 1% decline over the six months period.
The company realized substantial cost efficiencies. The distribution and marketing expenses increased by merely 4% against 15% increase in sales. There has been an increase of 2% in the administrative, distribution and marketing expenses in comparison with 13% increase on average during the corresponding periods of the last three years and an inflation of 9.2% during the half year.
The positive impact of the sales performance and cost efficiency on the bottom line of the Company was partially offset by the sharp devaluation of Pak Rupees against US Dollar of approximately 6.5% as compared to 2.3% during same period last year.
This resulted in an exchange loss of Rs 2.2 billion as compared to Rs 0.96 billion during same period last year.
Similarly the PSOs share price recorded an impressive growth, outperforming KSE 100 share index by 11% during the second quarter ended December 31, 2013. It is indeed an evidence of strong investor confidence in the management of the company.
Recovery of interest from private power producers contributed positively to the bottom line although it caused an increase in finance cost.
The sources also said posting all time high half yearly financial results by the Pakistan State Oil (PSO) is quite a feather in the entity's cap, prompting its management board to recommended name of its acting head as permanent managing director (MD).
Amjad Parvez Janjua who is currently leading as acting MD the public sector oil marketing company won laurels when the company announced its after tax earnings, rising by 150 percent to Rs 15.8 billion during the first half of financial year 2013-14 as compared to Rs 6.31 billion during the same period last year.
Given the impressive performance, the company's management board that had met at the PSO headquarters to review the financial results duly acknowledged his effective supervision and threw its weight behind Amjad Parvez Janjua by recommending him as permanent MD.
A board member said the board had acknowledged the hard work of the PSO's MD and its employees for impressive performance and strong half yearly results of the company.
“Board unanimously resolved and praised leadership of the current acting MD and recommended to the government Amjad Parvez Janjua as permanent MD of the PSO," the source said.