PSO BOM reviews financial performance in the first quarter of FY 13

Date: October 25, 2012

PSO BOM reviews financial performance in the first quarter of FY 13
KARACHI - October 25, 2012: The Board of Management (BoM) of Pakistan State Oil (PSO) convened on Thursday at PSO House to review the company's performance for the first quarter of Fiscal Year 2013 (1QFY13).

During the period under review, the Company's revenues touched Rs 325 billion as compared to Rs 279 billion in the corresponding period last year, representing a growth of 16%. The Company has registered profit after tax of Rs. 4.2 billion as compared to Rs.2.5 billion during the same period last year.

Industry's volumes for Black Oil increased by 1%, whereas, White Oil grew by 3% reflecting an increase in PMG and HSD consumption of 9% and 1% respectively. In the period under review, PSO enhanced its domination of the market with its share in both the Black Oil and White Oil segments improving to 80% and 57.4% respectively. This resulted in PSO achieving an overall market share of 68.1% as compared to 64.3% during corresponding period last year.

In the period under review, PSO strove to secure the country's energy supply chain by signing an MoU with Pakistan National Shipping Corporation (PNSC) for the transport of Furnace Oil (FO) from foreign ports to Pakistan's shores. Additionally, the company enhanced its focus on customer interaction through the inauguration of "Biker's Lane", a priority service lane for motorcycle users at Karachi. PSO also improved product delivery satisfaction amongst its customers through the inauguration of new and smaller Mobile Quality Testing Unit (MQTU) vans which will provide quality control measures at retail outlets across the region. Furthermore, during 1QFY13, the nation's largest public sector company continued living up to its role as a responsible public sector organization by supporting multiple NGO's in the field of education, health and community development under its Corporate Social Responsibility program.

The Board, while appreciating the efforts of the Company's management on behalf of the shareholders, expressed continuing concern on the ever rising balance of receivables, including price differential claims, which stood at Rs 176 billion as at September 30, 2012. They observed that the financial costs associated with servicing this debt coupled with consistent non-payment from the power sector continued to hurt the overall profitability of the company and directed efforts to be made to reduce the impact of the burdening financial costs through constant pursuit for recovery of receivables from the power sector entities as well as from the Government of Pakistan.