Profit after tax of PSO increases to Rs 14.779 billion

The profit after tax of Pakistan State Oil (PSO) increased to rupees 14.779 billion in the fiscal year ended June 30, 2011 (FY11) as compared to Rs 9.049 billion earned in FY10. The earning per share (EPS) of the country''s largest state owned oil marketing company surged to Rs 86.17 in the period under review against Rs 52.76 in the same period last year.
The board of management of the company in its meeting held, here on Tuesday, recommended a final cash dividend for the financial year ended June 30, 2011 at the rate of Rs 2.00 percent share, equivalent to 20 percent. This is in addition to the already paid interim dividends at Rs 8.00 per share ie 80 percent.
According to the financial results sent to Karachi Stock Exchange (KSE), the company''s net sales increased to Rs 820.530 billion in this period against Rs 742.757 billion in the same period last year. The cost of product sold increased to Rs 786.250 billion against Rs 713.591 billion. The company''s profit before taxation increased to Rs 17.974 billion in FY11 against Rs 17.963 billion earned in FY10.
A statement issued here said that PSO posted record results for the financial year 2011. "Despite financial challenges posed by the ever increasing circular debt and the economic slow down, PSO maintained its position as the market leader with a market share of 78.2 percent and 54.4 percent in the Black Oil and White Oil segments respectively, thereby contributing to an overall market share of 65.6 percent", it said. PSO sold 12.6 million tons of POL products in FY 11 with net sales revenue growing to Rs 975 billion in comparison with Rs 877 billion in the previous year.
Tough the board expressed confidence in the strategic vision and managerial skills of PSO management, it nevertheless expressed serious concern on the spiralling receivables, which stood at Rs 138.2 billion as of August 9, 2011. They observed that the financial costs associated with servicing this debt coupled with consistent delays in payment from the power sector continues to hurt the overall profitability of the company. The BoM directed that efforts be made to reduce the impact of the burgeoning financial costs through constant pursuit for recovery of receivables from the power sector entities as well as Government of Pakistan.