|Date: September 29, 2010|
|PSO’s 34th AGM amidst strong financial performance|
|Pakistan State Oil, the largest public sector organization in the energy industry held its 34th Annual General Meeting. The newly instated Chairman, Haji Nazim, presided over the gathering and highlighted the salient features of the Company’s financial performance during the preceding fiscal year.|
At the occasion managing director PSO, Irfan Qureshi, highlighted the strong foundation of PSO which is proven by ever highest turnover of Rs. 877 billion in the financial year ending 2009-10. Additionally, the Company has also declared profit after tax of Rs. 9 billion, further cementing its position as the market leaders with overall market share of over 71 percent. Irfan highlighted the fact that the current EPS of Rs. 52.8/share offered to shareholders was a record in the history of the industry as the highest ever. The shareholder praised the stellar performance of PSO and based on the financial highlights expressed their satisfaction in the board and the management.
MD further shared his plans and vision to chart a progressive path for PSO which included storage enhancement, expansion of retail network and diversification projects like acquisition of refinery and initiating a power project. Qureshi also emphasized his plans for technology advancement across the board. Initiatives to promote and relaunch lubricants in the upcoming quarter and explore potential opportunities for LPG storage were also shared at the occasion which were well-received by the shareholders.
The newly appointed Chairman, Nazim Haji, also addressed the shareholders and informed them of Company’s plans to acquire a refinery to overcome product shortage and limited domestic refining capacity, which results in import of refined product. The plans for backward integration were appreciated by the shareholders who dubbed it as the need of the hour in the wake of rising energy needs. The Chairman lauded the efforts of PSO management who ensured uninterrupted supply to meet the energy requirements throughout the year despite financial challenges.
Focusing on future plans, Nazim Haji said: “PSO’s management has dedicatedly formulated various strategies to overcome liquidity problems and I am foreseeing an even better performance of the company in the current fiscal year as the company would be implementing aggressive marketing efforts. We also firmly believe that the future growth lies in innovation, highest level of customer service and diversification into new business areas.” He further emphasized the need for adopting transparency in all business affairs to ensure that ethical standards are met.
The shareholders expressed their satisfaction over performance of the Company amidst serious financial turmoil and showed grave concern over the lingering circular debt and the issue of turnover taxation which shall adversely impact the profitability of the organization and hence reduce dividend payout. Shareholders also welcomed the transparent disclosure of financial results and reiterated their confidence in the management, and provided them with valuable feedback on areas for improvement.