February 11, 2022
The country's largest energy company, Pakistan State Oil (PSO) continues to gain momentum and outperform the industry reporting the highest ever half year gross revenue of PKR 1.12 trillion and profit after tax of PKR 32.2 billion (1HY21: PKR 9.5 billion). The net profit translated into a healthy earning per share of PKR 68.56 vs. PKR 20.28 in 1HFY21.
PSO's Board of Management reviewed the performance of the company together with its subsidiary Pakistan Refinery Limited (PRL) for the first half of the financial year 2021-22 (1HFY22) during the meeting held in Islamabad on February 11, 2022. On a consolidated basis, the group collectively posted a net profit after tax of PKR 32 billion (1HFY21: PKR 9.3 billion).
Chairman, Board of Management, PSO, Mr. Zafar I. Usmani said "This is a momentous occasion, we have once again made history, delivering strong financial performance in the first half of fiscal year 2021-22. Our operational excellence, financial strength and discipline underpin the transformation of the company. While mounting receivables continue to pose a serious threat to PSO's financial health, we are actively pursuing the matter with the concerned authorities. Going forward, we have a robust strategy in place keeping our customers at its core and are well-positioned to expand our portfolio in-line with our future growth and diversification strategy".
PSO has been on a steady growth trajectory as the company's profits increased by 238% over the same period last year. The company's strong operational performance and strategic thrust is reflected in its market share which rose by 340 basis points over the same period last year.
PSO continued to outperform the market, leading the downstream sector with volumetric growth of 20.8% in liquid fuels against the industry's growth of 12.3%, capturing around 48% share of white oil and 60% of black oil markets of the country. Major contributions came from motor gasoline, high speed diesel and furnace oil, in which the company achieved volumetric growth of 15.5%, 18.3% and 30.4% against industry's growth of 7.9%, 15.2% and 14.1%, translating into market shares of 44.0%, 48.9% and 60.1% against 41.1%, 47.6% and 52.6% as of the same period last year respectively.
Managing Director & CEO, PSO, Syed Taha said "Our half-year results further reinforce the company's growth story and our strong standing as the nation's energy lifeline. I am extremely proud of our teams, who have adapted quickly to the evolving operating environment, while delivering on our long-term strategy. We have ambitious plans to provide innovative and environmentally friendly products and services to our customers, keeping sustainability at the heart of our operations and a steadfast focus on maintaining high levels of safety, quality and customer experience."
PSO continued to boost innovation and increase its digital capabilities by embracing technology to drive growth and enhance efficiency. The company made significant strides on its journey of digital transformation and established a centralized command and control system as part of its robust digitalization strategy. This initiative will streamline the supply chain by connecting operational locations, retail outlets and logistics to the system for data gathering, monitoring, analyzing and controlling the company's value chain nation-wide.
PSO increased the reliability, availability, efficiency and capacity of its infrastructure to meet the country's growing energy needs by adding a capacity of 55 thousand tons to its storages. During the first half of FY2022, PSO continued to deliver on its promise of bringing modern, digitally-enabled fuel retail convenience to customers and communities with the opening of 20 new stations nationwide.
The company further strengthened its business with the signing of MoUs of strategic importance to fortify sustainability and secure the energy value chain including those with Frontier Works Organization and Pakistan Railways. As a responsible corporate citizen, PSO, through its PSO CSR Trust extended support of approx. PKR 90 million in the fields of healthcare, education and community-building. The company also continued its nationwide campaign of inoculating citizens against COVID-19, administering more than 200,000 doses nationwide.
The Board expressed concern over mounting trade receivables, noting an increase of PKR 77.7 billion in receivables from Sui Northern Gas Pipelines Limited compared to June 30, 2021. The matter is being actively pursued with the concerned authorities for settlement.
The management extended its gratitude towards its stakeholders including the Board of Management, Government of Pakistan, Ministry of Energy (Petroleum Division), shareholders and employees for their continued support.
