ISLAMABAD: Pakistan State Oil (PSO) has demonstrated its unwavering resolve and resilience by attaining remarkable milestones in the first quarter of the financial year 2023-2024.
During this period, PSO announced an unprecedented quarterly after-tax profit of PKR 21.89 billion, resulting in an impressive earnings per share of PKR 46.62. Additionally, PSO reached its highest-ever quarterly gross sales of PKR 976 billion.
In a meeting held on October 20, 2023, the company’s Board of Management (BoM) assessed the group’s performance for the first quarter ending on September 30, 2023. The group also posted its highest-ever Q1 net profit after tax of PKR 23.99 billion, translating to an earnings per share of PKR 51.10.
Despite the challenges posed by soaring inflation, reduced economic growth, geopolitical tensions, and a global surge in oil prices, the petroleum industry witnessed a decline in product consumption. Nevertheless, PSO adeptly navigated these challenges while upholding its commitment to ensuring a consistent nationwide fuel supply.
The company further solidified its position in the white oil segment by increasing its market share by 4.3%, concluding the quarter with a commendable 53.1% market share. Notably, PSO’s market share in diesel and gasoline grew by 4.5% and 4.2%, respectively, reaching 55.0% and 47.9%.
The black oil segment encountered a challenging quarter, with a 63% decrease in sales due to reduced furnace oil-based power generation. However, PSO maintained its leadership in the black oil segment, holding a market share of 29.6% at the quarter’s end.
In an effort to reinforce the company’s robust supply chain and infrastructure, PSO refurbished 24 thousand tons of existing storage facilities at Sihala and Zulfiqarabad during the period. Additionally, construction of new storage facilities totaling 91 thousand tons is currently underway at Faqirabad, Faisalabad, and Mehmoodkot. Taking a forward-looking approach, PSO harnessed its digital capabilities to drive growth and enhance operational efficiency by successfully automating an additional 2 terminals at Mehmoodkot and Shikarpur, bringing the total to 5.
PSO’s commitment to the nation is evident through its core value of caring and giving. During the period, the company contributed over PKR 30 million to various CSR initiatives focused on healthcare, education, the environment, community building, and disaster relief.
Recognizing the challenges posed by mounting trade receivables, high borrowing costs, and escalating finance costs, the Board is actively engaged in settlement discussions with the relevant authorities to address these concerns.
PSO remains unwavering in its commitment to enhance its financial and operational performance, pledging to keep the wheels of the economy turning. The company aims to achieve this through a multifaceted approach, including digitization and automation, process re-engineering, bolstering operational reliability and capacity, enhancing the customer experience with value-added services, and creating shareholder value through long-term strategic projects and plans.
The management extends heartfelt gratitude to all stakeholders, including the Board of Management, the Government of Pakistan, Ministry of Energy (Petroleum Division), shareholders, and employees for their continued support and trust.
