PSO shines in Third Quarter of FY10

The Board of Management of Pakistan State Oil (PSO) convened on Thursday at the PSO House to review the company’s performance over the nine month period from July ’09 to Mar ’10. The leading energy provider announced very strong results heralding a prosperous last quarter and sound financials backing its many initiatives.

During the period under review, PSO’s sales revenue touched Rs. 627 billion as compared to Rs. 540 billion during the corresponding period last year. Earnings after tax for the third quarter were Rs. 2.5 billion, accumulating to Rs. 7.5 billion for the nine-month period versus a loss of Rs 9.3 billion during the corresponding period last year.

Between July and Dec, PSO’s Furnace Oil volumes grew by 15.2%, well over the industry average of 12.5%. Moreover, in the White Oil segment, PSO’s Mogas and JP1 volumes grew by 27.5% and 8.9%, respectively. In addition, the company posted record Mogas sales of approximately 193,000 MTs in March 2010. The Black Oil and White Oil segments stood at 88.3% and 55.6%, respectively, thereby contributing to an overall market share of 70.8% at the end of the period under review.

The Board was visibly pleased with PSO’s healthy financial results and lauded the efforts management was making. The Managing Director, Irfan Qureshi, thanked the Board for their appreciation and recognized the significance of the role they had played in this regard. He added that the third quarter had certainly raised the bar for the organization as a whole, which will hopefully prove to be the harbinger of a more stable financial future for the company.

The third quarter also witnessed the resumption of sales of E-10 in Sindh after completion of certain procedural formalities. E-10, the environment-friendly and cost-efficient fuel, has been accepted very well amongst the masses since its re-launch. PSO is continuing its concerted efforts to promote E-10 despite many challenges by making responsible decisions that will have positive spillover effect for the whole country.

PSO succeeded in delivering robust financial results despite the circular debt crisis, which is still a looming concern. As on March 31, 2010, PSO’s receivables stood at an alarming Rs. 108 billion and it had to resort to heavy borrowings, resulting in its incurring high financial charges. PSO is working closely with the Government of Pakistan and IPPs for recovery of its receivables.