PSO continues to dominate the energy market and reports profits of PKR 5.7 Bn

The nation’s leading energy company, PSO has achieved remarkable progress and demonstrated resilience in a challenging energy market. During a meeting held at PSO House on August 23, 2023, the company’s Board of Management (BoM) reviewed the group’s performance for the June 30, 2023 financial year. Despite galloping inflation, sluggish market growth, a volatile currency, and a turbulent geo-political environment, PSO has achieved a gross revenue of PKR 3.6 trillion and a profit after tax of PKR 5.7 billion. These results reflect the company’s unwavering financial and operational performance in challenging times.

The Board of Management also announced a dividend of PKR 7.50 per share i.e., 75% for 2022-23. Additionally, PSO’s subsidiary, PRL, reported a profit after tax of PKR 1.8 billion, while gross revenue stood at PKR 326 billion. On a consolidated basis, the group achieved a profit after tax of PKR 9.3 billion, resulting in an EPS of PKR 19.85.

PSO continued to increase market share across key portfolios, especially in white oil, where the company increased its participation by 1.8% to reach at 51% of the industry volume. Notwithstanding the country’s modest motor gasoline sales, PSO increased its market share to 44.4%.

Against the industry decline of 29% in diesel consumption, PSO managed to sell 3.4 million tons during the year, an increase of 2.8% market share over the previous year. Building on its leadership position in the jet fuel segment, PSO posted the highest record market share of 98%.

Owing to a decrease in furnace oil demand from the power sector, the black oil industry witnessed a decline of 45%, while PSO managed to sell 1.1 million tons during the period. Amidst industry decline, the company continued to make strides in the lubricant segment, increasing its market share to 25.2%. Three new upgraded products were introduced at the forefront of innovation, including PSO CARIENT S-PRO with Opticore Technology, PSO DEO MAX with Oxidation Resistance Technology, and PSO Synthetic SMO Gold.

Making headway in gaseous fuels, PSO expanded its LPG business by launching the cylinder exchange facility at its retail outlets, registering an exceptional sales volume of 40.3 thousand tons and a growth of 9%.

Committed to creating value for stakeholders through vertical expansion into the Fintech space, PSO extended its horizon with CERISMA (Pvt.) Limited. The company also took significant steps towards reducing its carbon footprint and promoting environmental stewardship through PSO Renewable Energy (Pvt.) Limited to develop and execute renewable energy assets and commercial projects supporting the government’s renewable energy policy. Furthermore, PSO initiated transhipment of motor gasoline and diesel through the White Oil pipeline (WOP) and commissioned its first solar power plant at the Shikarpur terminal, demonstrating its commitment to green energy.

Future-focused, PSO leveraged its digital capabilities to drive growth and enhance operational efficiency by successfully integrating and automating 3 of its terminals at Keamari Terminal (Karachi), Machike (Lahore) and Sihala (Rawalpindi) and further integrating 500 additional retail outlets with the central command and control system bringing the total to 900.

PSO continued to invest in infrastructure development, ensuring a seamless, efficient and reliable supply of products to its valued customers. It maintained an operational availability of above 90% throughout the year through an increased storage capacity of 1.2 million tons across Pakistan.

With PSO’s commitment to growth and expansion, 49 new retail outlets and over 200 Shop Stops were successfully added to its nationwide network, reaching remote and far flung areas.

PSO believes in making a meaningful impact on society and the environment. By touching vast areas from healthcare, education, environment, welfare and flood relief, PSO contributed over PKR 550 million to various CSR initiatives.

While acknowledging the achievements, the Board of Management raised concerns over the company’s circular debt crisis. The matter is being actively pursued with the concerned authorities for settlement.

PSO extends its heartfelt gratitude to its stakeholders, including the Board of Management, Government of Pakistan, Ministry of Energy (Petroleum Division), shareholders, and employees, for their unwavering support.

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