Pakistan State Oil (PSO), the leading energy company of Pakistan, convened its Board of Management (BoM) meeting at the PSO Headquarters in Karachi to review the performance of the Company for nine months’ period from July to March for financial year 2017-18.
Key highlights from the financial results show that the company earned Profit after Tax (PAT) of Rs 13.2 billion. Gross profit also showed a growth of 6.9% despite decline in furnace oil volumes. The company had product wise volumetric growth of 5.4% in HSD, 12.3% in MOGAS, 10.3% in Jet Fuel (JP-1), 21% in LPG, 5% in Lubricants and 34% in LNG. The FO volumes however declined by 29%.
PSO has managed to get additional funds of Rs. 23 billion in the month of March, bringing down the outstanding receivables (inclusive of LPS) from the Power Sector, PIA and SNGPL as of March 31st, 2018 to Rs. 304 billion vs. Rs. 313 billion as of December 31, 2017. The management is continuously pursuing with the Ministry of Energy and the Ministry of Finance for their due intervention for injection of funds in order to settle the said outstanding receivables as well as payment for FO and LNG supplies of Rs. 130 billion planned to be made in the quarter April-June 2018.
As a result of the financial performance, PSO has announced 100% cash dividend of Rs. 10 per share.
Influx of smuggled product, volatile fuel demand by the power sector and hurdles in induction and smooth movement of NHA/OGRA compliant tank lorries by the transport union will be key challenges for the business in comings months, further added the company’s report to its shareholders.