Pakistan State Oil announces Q1 (FY2018) financial results, reports 33.7% growth

Date: October 23, 2017
Pakistan State Oil announces Q1 (FY2018) financial results, reports 33.7% growth
Pakistan State Oil (PSO), the leading energy company of Pakistan, convened its Board of Management (BoM) at PSO Headquarters in Karachi to review performance of the company for the quarter ended September 30, 2017.

The Company delivered excellent results in the quarter with top line increased to Rs 258.6 billion, clocking 33.7% growth vs same period last year (SPLY). Highest ever quarterly sales were recorded in MOGAS and Jet Fuel; up by 30.1% and 22.6% respectively over SPLY. Considerable sales growth was also witnessed in HSD, LPG, Lubricants and LNG businesses with growth of 31.4%, 71.0%, 36.0% and 49.9% respectively over SPLY. Furnace Oil (FO) sales however, were down by 9.4% in line with reduction in industry volumes partly due to low consumption by GENCOS and partly due to higher LNG utilization. PSO continue to maintain its strong market leadership position with an overall liquid fuels market share of 55.8% as on September 30, 2017.

Higher sales and cost effective borrowing resulted in 14.9% growth in PSO’s Profit after tax which has increased from Rs 4.4 billion to Rs 5.0 billion vs SPLY and as a result the earnings per share grew to Rs 18.5 vs Rs 16.1 SPLY.

The outstanding receivables as of September 30, 2017 stood at Rs 282.0 billion (June 30, 2017: Rs 277.1 billion) from the Power sector, PIA and SNGPL against supplies of FO, Aviation Fuels and LNG. PSO continues to engage with relevant stakeholders for early realization of outstanding dues. Despite pending receivables and increasing international oil prices, PSO is committed to deliver value to customers by managing its imports and refinery purchases effectively.

Last month, PSO Team went beyond the call of duty to respond to the energy needs of the country by handling significantly higher volumes with its logistic partners to ensure there is no shortage of fuel in the country. It was when other oil marketing companies reduced importing fuels due to an increase in international oil prices that made the trade commercially unviable. PSO however remained firm in its resolve to exceed the expectations of its customers and fuel Pakistan’s journey of growth and prosperity despite incurring inventory losses.

PSO has welcomed the initiative of Ministry of Energy to deregulate HSD as it will create a competitive environment for 15 OMCs and 6 additional ones pending with OGRA.

Recently, PSO has been ranked at top position in the Institute of Chartered Accountants of Pakistan's (ICAP) List of top 100 corporations of the country. The ICAP Top 100 Companies of Pakistan list gives recognition to high performing companies where ranking is devised based on data received from the Pakistan Stock Exchange and financial reporting of the corporations. PSO's achievement was based on meeting ICAP's criteria set under the category of 'Revenue wise Top Performing Companies.

The management expressed sincere gratitude to all stakeholders including Government of Pakistan, especially Ministry of Energy and shareholders of the Company for their continued support. The Management also thanked PSO Team for their resolute and commitment as the company gears up to meet the upcoming challenges.