AVN 66.93 Decreased By ▼ -0.17 (-0.25%)
BAFL 29.54 Decreased By ▼ -0.21 (-0.71%)
BOP 4.06 Decreased By ▼ -0.01 (-0.25%)
CNERGY 3.62 Decreased By ▼ -0.11 (-2.95%)
DFML 11.94 Decreased By ▼ -0.31 (-2.53%)
DGKC 43.26 Decreased By ▼ -2.10 (-4.63%)
EPCL 45.97 Decreased By ▼ -1.03 (-2.19%)
FCCL 11.81 Decreased By ▼ -0.19 (-1.58%)
FFL 5.91 Decreased By ▼ -0.04 (-0.67%)
FLYNG 6.04 Decreased By ▼ -0.14 (-2.27%)
GGL 11.41 Decreased By ▼ -0.48 (-4.04%)
HUBC 68.11 Decreased By ▼ -0.39 (-0.57%)
HUMNL 5.64 Decreased By ▼ -0.08 (-1.4%)
KAPCO 24.91 Decreased By ▼ -0.34 (-1.35%)
KEL 2.13 Decreased By ▼ -0.01 (-0.47%)
LOTCHEM 24.95 Decreased By ▼ -0.41 (-1.62%)
MLCF 24.91 Decreased By ▼ -0.79 (-3.07%)
NETSOL 75.92 Decreased By ▼ -1.88 (-2.42%)
OGDC 85.99 Decreased By ▼ -2.13 (-2.42%)
PAEL 11.11 Decreased By ▼ -0.54 (-4.64%)
PIBTL 3.99 Decreased By ▼ -0.13 (-3.16%)
PPL 66.27 Decreased By ▼ -2.44 (-3.55%)
PRL 12.92 Decreased By ▼ -0.33 (-2.49%)
SILK 0.87 Decreased By ▼ -0.01 (-1.14%)
SNGP 40.72 Decreased By ▼ -0.98 (-2.35%)
TELE 7.57 Decreased By ▼ -0.40 (-5.02%)
TPLP 15.05 Decreased By ▼ -0.37 (-2.4%)
TRG 110.33 Decreased By ▼ -2.23 (-1.98%)
UNITY 13.52 Decreased By ▼ -0.58 (-4.11%)
WTL 1.21 Decreased By ▼ -0.02 (-1.63%)
BR100 4,081 Decreased By -61.9 (-1.49%)
BR30 14,631 Decreased By -307.2 (-2.06%)
KSE100 40,376 Decreased By -501.9 (-1.23%)
KSE30 14,916 Decreased By -172.3 (-1.14%)

PSO receivables hit Rs402.863bn mark

  • The company announced its highest-ever after-tax profit of Rs29 billion for financial year 2020-21
Published November 28, 2021
Follow us

ISLAMABAD: The Pakistan State Oil (PSO) continues to face the challenge of circular debt due to inability of clients to clear the dues timely, despite making heavy profits in the last financial year 2019-20.

The company announced its highest-ever after-tax profit of Rs29 billion for financial year 2020-21.

The PSO’s receivables from all the clients touched Rs402.863 billion.

The PSO has recovered Rs194.283 billion from the power sector along with late payment surcharge income.

At present, the PSO is to recover Rs402.863 billion from its clients.

The company management has reduced finance cost by Rs3.2 billion that had further complemented the profitability of the company.

However, it is still facing a critical time due to all-time high receivables.

The PSO supplies oil to various clients and now a new phenomenon in the shape of circular debt has emerged on account of liquefied natural gas (LNG).

Circular debt of PSO soars to all-time high

Of the total, the PSO has to receive Rs194.283 billion from the power sector on account of oil supply for power generation.

Generation companies are major defaulters that have to pay Rs140.714 billion.

Hubco owes Rs45.105 billion, whereas, Kapco has to pay Rs8.465 billion.

The PSO has also played a pivotal role in the LNG sector.

The company entered into another agreement with Qatar Petroleum under G2G arrangement to supply an additional three million tons of LNG for a period of 10 years.

This contract shall add additional volumes to an already executed 15-year long-term sales purchase agreement (SPA), making the PSO the largest supplier of LNG in the country with a supply base of 6.75 million tons per annum.

However, the company is facing circular debt issue in this sector.

It is supplying LNG to the Sui Northern Gas Pipelines Limited (SNGPL) to distribute to the consumers.

The SNGPL has to pay Rs164.759 billion to the PSO on account of LNG supply.

This is a new addition in the circular debt chain in the oil and gas sectors.

The Pakistan International Airlines (PIA) is another big defaulter of PSO.

The PSO supplies jet fuel to the airline to continue its operations.

However, it has not been able to pay dues to PSO on account of fuel supply.

The PIA has to pay Rs21.974 billion to the PSO.

The state-run oil company is due to receive Rs10.161 billion from the government on account of price differential claims. Despite multibillion rupees of the PSO being stuck due to non-payment of dues by its clients, it has been making major payments to oil refineries in Pakistan.

The PSO has to pay Rs32.101 billion to oil refineries.

It owes Rs16.836 billion to Pak-Arab Refinery Company (Parco), Rs4.931 billion to Pakistan Refinery Limited (PRL), Rs3.984 billion to National Refinery Limited (NRL), Rs3.848 billion to Attock Refinery Limited (ARL), Rs1.100 billion to Byco, and Rs1.403 billion Enar.

Inefficient power, RLNG sectors: PSO receivables hit Rs380.464bn mark

The PSO is also the largest importer of oil.

It has an agreement with Kuwait Petroleum.

It has to pay the company Rs129 billion on account of LC payments for oil and LNG.

The financial results have demonstrated the PSO’s agility and strength across its diverse portfolio despite, the challenging economic scenario and recurrent waves of the pandemic.

The PSO is leading the market by a large margin, delivering a phenomenal performance over and above the industry average.

Despite swelling outstanding, the company has exhibited an outstanding growth of 21.9 percent in liquid fuels over last year with volumes reaching 9.2 million tons, attaining a market share of 46.3 percent in financial year 2021 compared to 44.3 percent in financial year 2020-21.

The PSO also achieved its highest-ever volume of 7.6 million tons in the white oil segment despite, the shrinking jet fuel and kerosene oil industry, with a market share of 45.2 percent in financial year 2021 compared to 44 percent in financial year 2020.

Copyright Business Recorder, 2021


Comments are closed.

PSO receivables hit Rs402.863bn mark

‘Shady’ contract to Chinese firm: Senate panel accuses World Bank office of ‘conniving’ with NTDC

RLNG power plants owned by NPPMCL: BoI engaging ADQ and IHC to ascertain their interest

CJP says audio-video leaks bereft of authenticity

ECP postpones Punjab elections to Oct 8

Two IGs, ‘handlers’ plan to ‘kill me like Murtaza Bhutto’: IK

Financing fuel subsidy: Rich to pay Rs100 more per litre: govt

Money laundering, terrorism financing: Customs dept directed to refer cases to CTD

SC says 50pc of deemed IT to be paid till adjudication of pending appeal

Reconstitution of NEC approved

Parliament’s attention drawn to ‘existence’ of ‘armed groups’