|Date: April 29, 2021|
|Pakistan State Oil (PSO) continues to outperform the energy market earning a net profit after tax of PKR 18.2 billion during the nine month period for the financial year 2020-21 (9MFY21) despite the challenges posed by the pandemic which demonstrates the company's resilience and dependability. PSO's Board of Management (BoM) reviewed the performance of the company together with its subsidiary Pakistan Refinery Limited (PRL) during the meeting held at PSO House, Karachi on April 29, 2021. |
During 9MFY21, the company registered an astounding volumetric growth of 21.6% over the same period last year while increasing market share by 260 basis points (bps) closing at 46.3%. With a volumetric gain of 19.9% in MOGAS and 28.2% in HSD, market shares of both products increased to 310 and 370 bps respectively. Cumulatively, PSO's white oil market share increased by 190 bps over the same period last year to close at 44.9% and black oil closed at 52.8% i.e. an increase of a staggering 480 bps.
Leading the sustainable energy revolution, PSO continued to boost innovation to drive growth while enhancing its digital capabilities. The launch of Hi-Octane 97 Euro 5, Premier Euro 5 and Hi-Cetane Diesel Euro 5 proved to be game changers in the industry, bolstering customer's confidence in PSO's products. Building on its value creation model, the company prioritized high margin products, launched EV charging facility and fast tracked infrastructural projects to gain operational efficiency.
Focus was increased on automation, digitization and business process re-engineering to meet fast changing stakeholder and consumer needs. PSO has recently transformed its procurement process through SAP Ariba which will significantly enhance the company's strategic and operational capabilities, increase efficiency and reduce turnaround time.
The company's strong operational performance and strategic thrust translated into an exceptional profit after tax of PKR 18.2 bn in 9MFY21 vs. PKR 3b in 9MFY20. The significant increase in profit is primarily attributable to increase in gross profit on account of volumetric increase supplemented by favorable price regime, reduction in finance cost and lower discount rate prevalent during the period. PRL, a subsidiary of PSO, also reported a profit after tax of PKR 0.6 bn during the period under review vs. a loss of PKR 6.8 bn in 9MFY20. On a consolidated basis, the group achieved a profit after tax of PKR 18.3 bn in 9MFY21 vs. loss after tax of PKR 4.4 bn in 9MFY20.
These results demonstrate PSO's agility and strength across its diverse portfolio. As the business environment continues to evolve, the company remains committed to sustainable growth and profitability while creating value for the shareholders.
The management expressed sincere gratitude to all stakeholders including its BoM, GOP, Ministry of Energy, and the company's shareholders for their continued support and guidance.