PSO posts Rs. Rs 2.5 billion profit after tax; declares 60% dividend

Wednesday, November 02, 2005  :  KARACHI: The Board of Management of Pakistan State Oil Company Limited has announced a cash dividend of Rs 6/- per share to its shareholders

The announcement was made on October 29th, 2005, as acknowledgement of the impressive financial results, at the conclusion of the first quarter of FY06 ended 30 September 2005 Mr. Pervaiz Kausar, Chairman, BoM, presided over the meeting at company headquarters PSO House, Karachi.

The company’s sales revenue during July-September 2005 was Rs 71 billion showing a growth of 19% over prior year period. This translated into an earning before tax of Rs 4 billion, and profit after tax of Rs 2.5 billion, higher by 112 % and 109 % respectively as compared to corresponding period last year. Based on remarkable performance, the Board of Management announced a cash dividend of Rs 6/ per share to its shareholders.

The Board observed that the review period was marked by uncertainties, and high demand that led to substantial increase in international crude oil prices followed by a corresponding increase in local POL prices. As a consequence, Mogas and HSD industry consumption registered a decline of 5% and 7% respectively. An overall decline, by around 7% over prior year period, was witnessed in White Oil consumption. Similarly, Black Oil also recorded a decline of 24%, mainly due to reduced FO consumption in the wake of improved hydel and gas generation.

Despite these setbacks, coupled with ever-intensifying competition – with new entrants gaining market share and further segmenting the market – PSO maintained its overall market leadership in key products. This was primarily due to numerous sales promotion activities, commissioning of JP-8 facilities at Keamari Terminal ‘B’ and further expansion of New Vision retail outlets network.

On July 1, 2005, the company took a quantum technological leap with introduction of state-of-the-art ERP solution through deployment of SAP. Through this major strategic corporate initiative, the company has once again benchmarked its quest for ever-greater customer care through technology driven innovative systems, products and services.

The Board observed that PSO, being one of the largest corporate citizens in the country, responded promptly as a partner in the rescue and relief operations for the victims of the worst natural disaster that struck the nation soon after the end of review period. In this connection, the company donated Rs. 20 million to the President’s Relief Fund; is providing Jet Fuel to Edhi Air Ambulance free of cost for mercy flights; refueling international relief flights at reduced prices; the employees contributed two-days’ salary. Two convoys of trucks/containers of relief goods were dispatched to Abbottabad, and Dirkot. Ten truckloads of 10,000 litres each of Kerosene Oil are being dispatched to affected areas for domestic consumption. The company is further assessing the situation and has allocated Rs 100 Million for relief and rehabilitation.

PSO continued uninterrupted supply of fuel to the affected areas to meet the requirement.

The Board observed that PSO would be maintaining an optimal balance between earnings and market share and is well placed to continue its leadership in the downstream sector in the face of rapidly changing business dynamics. With successful implementation of strategic initiatives, measures in cost efficiencies and enhanced usage of technology, the company would replicate its performance, year-after-year.

The Board appreciated the teamwork demonstrated by the employees, which has generated strong vibes for rapid progress of the company and overall prosperity of all its stakeholders.