|Date: September 3, 2014|
PSO announces record breaking profit in FY14
Board Commends MD PSO-Amjad Parvez Janjua for achieving outstanding results
In the period under review, PSO recorded all time high sales revenue, profit after tax and earnings per share. Sales revenue stood at Rs 1.4 trillion compared to Rs 1.29 trillion during the Same Period Last Year (SPLY), registering a growth of 9%. After tax earnings rose by 73% to Rs 21.8 billion as compared to Rs 12.6 billion during SPLY. Earnings per share increased to Rs 80.31 from Rs 46.52 during SPLY.
PSO maintained its market leadership position during the year under review with 73% share in Black Oil market and 53% in White Oil market, while registering a growth of 5% in sales over liquid fuels last year. The Company realized substantial cost efficiencies, whereby the distribution and marketing expenses increased merely by 3% as compared to 14% average increase in expenses over the last three years and against an inflation of 8.5% during FY 2014.
Recovery of interest from power sector consumers and interest on Pakistan Investment Bonds also contributed towards increase in the bottom line, which was nevertheless, mitigated by increase in finance cost by 26% due to power sector receivables viz-a-viz circular debt and net exchange loss of Rs 1 billion due to devaluation of PKR. The BoM expressed concern over increasing receivables from the power sector and advised the management to pursue the recovery thereof through continued follow-up with the customers and the concerned government offices.
Based on this performance, the PSO BoM announced a final cash dividend of Rs 4 per share in addition to the earlier interim cash dividends of Rs. 4 per share (equivalent to 80%) and issuance of bonus stock at the rate of 10%. Combined with the earlier interim cash dividends the total cash dividend for the year stands at Rs 8 per share.
The Board unanimously resolved to place on record its commendation for the management of PSO, particularly Mr. Amjad Parvez Janjua MD-PSO, for achieving outstanding yearly's results for the Company, which are all time high in the history of PSO. The Board also resolved to appreciate the PSO team on maintaining continuity of supply of petroleum products across the country, especially, during Eid, Ramazan and periods of civil disturbance. The Board also extended gratitude to the Government of Pakistan, particularly ministries of Petroleum and Natural Resources, and Finance for the support and contribution they extended to PSO which enabled the Company to achieve its business and performance objectives.
The management expressed gratitude for the valuable guidance and support provided by the BoM and assured the Board of the continued commitment and contributions of PSO team towards development and growth of the Company.