Pakistan State Oil announces financial results for 1QFY14

Date: October 28th, 2013
Pakistan State Oil announces financial results for 1QFY14

Karachi - 28th October, 2013: The Board of Management (BoM) of Pakistan State Oil (PSO) convened at the PSO House, Karachi, to review the Company's performance for the first quarter of financial year 2013-14 (1QFY14).

In the period under review, PSO recorded a turnover of Rs 364 billion as compared to Rs 325 billion during the same period last year (SPLY), representing a growth of 12%. The Company reported highest ever quarterly after tax earnings of Rs 7.8 billion in comparison to Rs 4.3 billion during SPLY, representing a growth of 81%.

PSO maintained its market leadership during the period under review with overall market share of 63.8% whereas its share in Black Oil and White Oil stood at 75.9% and 52.5% respectively. The Company's liquid fuel sales grew by 4.3%. The sales volumes of Furnace Oil and Motor Gasoline grew by 6.7% and 17.4% respectively whereas the sales volume of High Speed Diesel dropped by 6.4%.

The positive impact of the improved sales on the bottom line of the Company was partially offset by the sharp devaluation of Pak Rupees against US Dollar approximately 6.7% against 0.5% SPLY and consequent exchange loss of Rs 3.7 billion against Rs 0.4 billion during SPLY. However, interest received from the private power producers and interest accrued on PIB's had significant positive impact on the bottom line despite the fact that finance cost increased by 10%.

Due to liquidity issues faced by the company caused by the outstanding receivables, mainly from the power sector consumers, the Board has decided to defer the dividends at this stage.

The Board commended the PSO management and workforce for their efforts to boost the Company's performance in the interests of all stakeholders including the shareholders and the country. The Board directed the management to work closely with the concerned government offices and business partners for timely realization of due payments against the fuel supplies. The management thanked the Board for their guidance and support.