KARACHI: Pakistan State Oil Co Limited (PSO) continues to dominate the energy market, reporting highest ever nine-month profit after tax of Rs 64.8 billion as compared to Rs 18.2 billion in the corresponding period in FY21, demonstrating the company’s agility and strength across its diverse portfolio. PSO outperformed the industry in all petroleum products, leading to an astounding increase in its market share by 3.4 percent compared to June 30, 2021.
PSO’s Board of Management reviewed the performance of the company together with its subsidiary Pakistan Refinery Limited (PRL) during the meeting held at PSO’s head office in Karachi on April 28, 2022. PRL reported a profit after tax of Rs 5.4 billion for the period (9MFY21: profit after tax of Rs 0.6 billion). On a consolidated basis, the group achieved a net profit after tax of Rs 69.3 billion (9MFY21: Rs 18.3 billion).
PSO continued to lead the downstream sector with volumetric sales growth of 22.0 percent in liquid fuels against industry growth of 13.6 percent, capturing 48.3 percent and 56.5 percent share of the country’s white and black oil markets.
This growth was driven primarily by motor gasoline, high speed diesel and furnace oil, in which the company achieved volumetric sales growth of 15.5 percent, 26.0 percent and 22.0 percent against industry growth of 8.8 percent, 17.8 percent and 13.9 percent respectively as compared to the same period last year. It led to an increase in PSO’s market share in these products by a 2.5 percent, 3.3 percent and 3.7 percent respectively.
Despite the major energy supply crisis globally, PSO remained steadfast in its commitment to the nation and bridged the supply gap by importing4 additional HSD cargoes from the international spot market to avoid a potential dry out situation. The company added 112.5 thousand tons of new storages and rehabilitated 32.5 thousand tons of existing storages in the period to meet the growing demand of petroleum products in the country.
The company further expanded its largest retail footprint by adding 39 new outlets, while enhancing customer experience on its forecourt through non-fuel-retail services including quick-service restaurants, convenience stores and banking services. PSO re-launched Carient Fully Synthetic Motor Oil, introducing a bold new look with an improved double handle pack to meet fast changing consumer needs.
PSO renewed its partnership with Total Energies Aviation, France by signing Fuel Supply & Technical Services Agreements. The company also joined hands with Frontier Works Organization (FWO) to develop two state-of-the-art retail stations on the Lahore-Sialkot Motorway (North & South) equipped with Electro (EV charging) and rest rooms for the convenience of motorists. PSO signed the white oil pipeline multi-grade project throughput agreement with Pak Arab Pipeline Company (PAPCO) and became the first oil marketing company to provide oil-in for the commencement of the project.
PSO received the Largest Taxpayer Award (Import Sector-Nationwide) from the President of Pakistan to acknowledge its role in national tax collection and promote voluntary compliance along with increase in revenue collection. The company also won the Management Association of Pakistan (MAP)’s 36th Corporate Excellence Award in the Oil Marketing Companies (OMC) segment.
As a responsible corporate citizen, PSO, through its CSR Trust gave back to society by contributing Rs 108 million through its Corporate Social Responsibility Trust for various healthcare, education and social development projects.
To support NCOC’s drive of a corona free Pakistan, PSO successfully vaccinated over 200,000 individuals by providing vaccination facilities at 17 different locations including far-flung areas through mobile vaccination vans.
The Board expressed concern over mounting trade receivables, especially the increase in receivables from Sui Northern Gas Pipelines Limited of around Rs 149.3 billion as compared to June 30, 2021. The management is actively pursuing the matter with concerned authorities for the recovery of dues.
The management expressed sincere gratitude to all stakeholders including its Board of Management, Government of Pakistan, especially Ministry of Energy (Petroleum Division) for their guidance and support.
Copyright Business Recorder, 2022
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