PSO declares Rs18.2bn profit after tax for FY2017

KARACHI: The Board of Management (BoM) of Pakistan State Oil (PSO) convened on Monday, August 07, 2017 at company's head office, PSO House to review the company's performance for the financial year ended June 30, 2017. The meeting was chaired by Dr. Musadik Malik, says a Press release.

The Company reported PAT of Rs 18.2 billion in FY2017 as compared to Rs 10.3 billion last year. The earnings per share clocked at Rs 67.08 vs Rs 37.81 last year. 

The winning momentum came from 30% increase in top line to Rs 878.1 billion and gross margin improvement by 91 bps. During FY2017, the company depicted healthy volumetric growth across its products' portfolio. Furnace Oil, Jet Fuel and Motor Gasoline volumes were up by 11%, 19% and 9% respectively. Focused strategy resulted in 106% volume growth in LPG business and the Lubricants business repositioned itself in the market by gaining 28% volume over last year. PSO imported 67% of industry volume while also improving refinery uplift by 730 bps to 37.8%.

During the year, PSO imported 186,672,980 MMBTU of LNG through 58 vessels and supplied 400 MMCFD of RLNG from July 2016 to Jan 2017, which subsequently increased to 600 MMCFD from Feb 2017.

PSO continues to lead the liquid fuel market with an overall share of 54.8% despite external challenges resulting in non-resolution of IFEM mismanagement and delay in settlement of IFEM matters pending since 2008 by the Regulator, storage and port constraint solutions pending with GOP and last week sales capping monitored primarily on PSO by MPNR. 

Non-Fuel Retail segment was rejuvenated to launch model shop stop and branch-less banking alliance facilities at selected fuel stations. The company has initiated brand building activities and trade offers including Ramadan offering to its customers which set innovative approach for the industry. PSO has also entered into a 5 year term contract for Lubricants/HSD supply with Pakistan Railways in addition to the long term fuel transport agreement signed with Railways after 13 years for efficient and safer mode of transportation of fuel oil. PSO CSR Trust is now also actively focused on activities in the fields of Education, Health Care and Community Building. 

The outstanding receivables of Rs 277.1 billion (June 30, 2016: Rs 232.2 billion) from the power sector, PIA and SNGPL against supplies of Furnace Oil, Aviation Fuels and LNG respectively continues to place enormous liquidity pressure on the organization. Management has dealt with the situation through effective and efficient treasury management that has reduced finance cost despite heavy shot up in receivables and ensured throughout the year uninterrupted nation-wide furnace oil supply peaking at 23,000 tons/day. The management will continue to work closely with relevant Ministries and organizations for realization of dues including late payment surcharge.

Based on the performance of the company, the BoM has announced cash dividend of Rs. 15 per share (150%) and stock dividend 20% in addition to the already distributed interim cash dividend of Rs. 10 per share (100%). The total for the FY 2017 turns out to be Rs. 25 per share (250%) cash dividend and 20% stock dividend.

The management of the company thanks team PSO for their robust efforts and unblinking commitment for the delivery of outstanding business results that have grown by 163% over the last 2 years.