PSO''s first quarter profit up by 20 percent

The net profit of Pakistan State Oil Ltd (PSO) for the first quarter ended September 30, 2004, recorded an increase of 20 percent as compared to same period last year because of higher sales of furnace oil and diesel. The Pakistan State Oil (PSO) Board of Management met at company headquarters, PSO House, on Monday, to review the first-quarter FY-O5 accounts of the country''s largest oil marketing entity. Pervaiz Kausar, Chairman, BoM, presided over the proceedings.
The board observed that the company recorded increased product sales of both white oil and black oil, coupled with austerity measures, enhanced operating efficiency and further expansion of new product lines and services.
All these resulted in the company earning profit before tax of Rs 1.9 billion and profit after tax of Rs 1.2 billion, higher by 27 percent and 21 percent respectively as compared to the corresponding period of last year.
During the period under review, the domestic POL industry recorded a growth of 22 percent owing to improvement in fuel oil consumption by 48 percent.
The white oil products increased by 13 percent, whereas black oil consumption improved by 45 percent, mainly due to improvement in fuel oil sales. Mogas, HSD and Jet A-1 displayed the growth of 14 percent, 14 percent and 17 percent respectively.
The company continued to offer value to its customers by expanding its cards network through retail outlets across the country. To supplement this, the company also aggressively undertook the automation of its retail outlets so that the dispensing units are connected to the PSO Terminals and all transactions are recorded on-line.
To fulfil one of its Corporate Social Responsibilities, PSO also launched ''Premier XL'' (special additised petrol) which increases fuel efficiency and is environment-friendly.
The board noted that despite the prevailing intense competition, PSO progressively maintained its market leadership during the review period recording an impressive growth of 19 percent in Mogas and 14 percent in HSD. The domestic sales of Jet A-1 increased by 16 percent.
In black oil, there was a revival in sales due to dearth of hydel resources and the company sold 374,432 tons more than the corresponding period of last year (an increase of 58 percent).
The board appreciated that the company had managed sustainable financial performance despite increasing competition in oil marketing sector, and expressed confidence that with the successful implementation of strategic initiatives undertaken by the management, along with measures in cost efficiencies, PSO would continue to maintain its leadership.