The profit after tax of Pakistan State Oil Company (PSO), the largest oil marketing company in Pakistan, has increased to Rs 9.258 billion in the nine-month period ended on March 31, 2011 as compared to Rs 7.534 billion earned in the corresponding period in 2010. The company's earning per share has increased to Rs 53.98 in the period under review against Rs 43.93 in the same period last year.
The board of management of the company in its meeting held on Thursday recommended second interim cash dividend for the financial year ending June 30, 2011 at the rate of Rs 3 per share, equivalent to 30 percent. According to the financial results sent to Karachi Stock Exchange, the company's profit after tax slightly declined to Rs 2.127 billion translating into earning per share of Rs 12.40 in the quarter ended March 31, 2011 as compared to a profit of Rs 2.450 billion with per share earning of Rs 14.29 in the same quarter last year.
The company also issued its statement after announcement of its financial results that says, the Board of Management of Pakistan State Oil (PSO) convened on Thursday at the PSO House to review the company's performance over the nine months period ended March 31, 2011.
The sales revenue at PSO continued to register growth with an increase of 5.6 percent in the period under review, sales volume increased to Rs 663 billion in comparison to Rs 627 billion in the corresponding period last year. Despite constraints PSO posted improved after tax earnings of Rs 9.25 billion as compared to Rs 7.53 billion. The company said that the country's overall fuel consumption during the period under review has declined by 1.7 percent as compared to the corresponding period last year. In Black Oil, the industry declined by 1.6 percent, whereas the White Oil industry declined by 1.9 percent. However, PSO maintained its position as the market leader with the share in the Black Oil and White Oil segments standing at 77.9 percent and 54.3 percent, respectively, thereby contributing to an overall market share of 65.4 percent.
In the period under review PSO was ranked 20th amongst the "Top 100 Companies of the Muslim World". PSO was the only Pakistani company that was featured amongst these corporate giants in the annual Dinar Standard survey. This quarter PSO has also endeavored to create awareness on climate change behaviour, by joining the Earth Hour campaign on March 26, 2011, the world's largest global climate change initiative.
The Board extended a warm welcome to the new MD PSO, Jehangir Ali Shah and expressed confidence in his abilities. However, the Board also showed serious concern on the spiraling circular debt situation, which had receivables standing at Rs 157 billion as of March 31st, 2011. They observed that the financial costs associated with servicing this debt coupled with consistent non-payment from the power sector continued to hurt the overall profitability of the company and directed efforts to be made to reduce the impact of the burdening financial costs through constant pursuit for recovery of receivables from the power sector entities as well as from the Government of Pakistan.
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