Lahore (Muhammad Yasir) Pakistan State Oil (PSO), the leading oil marketing company of Pakistan, convened its Board of Management (BoM) meeting on October 27, 2020 to review the Company’s performance together with its subsidiary Pakistan Refinery Limited (collectively the ‘Group’) for the quarter ended September 30, 2020 (Q1FY21).
COVID-19 continues to impact people around the world. Despite the serious challenges faced by the economic and business world amid the outbreak, PSO has remained resilient in the rapidly changing environment, delivering solid organic growth and improved margins in the first quarter. The Board has confirmed PSO’s profitability and performance. The Company witnessed a volumetric growth of 11.8% in motor gasoline, 17.1% in high speed diesel (HSD), 7.7% in white oil, 37.8% in black oil and 13.9% in liquid fuels resulting in a market share of 42.1% in motor gasoline (increase of 1.2% vs. last year), 48.0% in high speed diesel (increase of 2.5% vs. last year), 45.5% in white oil (increase of 0.4% vs. last year), 56.8% in black oil (increase of 2.8% vs. last year) and 47.9% in liquid fuels (increase of 1.2% vs. last year).
The volumetric growth resulted in a net profit after tax of PKR 5.1billion which was PKR 3.5 billion during the same period last year. PSO attained new milestones on its journey of environmental stewardship with the launch of Euro 5 Hi-Octane 97 and Altron Premium Euro 5 (92 Ron) during the months of August and September 2020. Plans are underway for the launch of Euro 5 compliant HSD. The Company successfully reduced its finance cost through effective planning and cash flow management which was further supported by reduction in average policy rates.
During the period under review, the Company’s product sourcing comprised of 40% upliftment of refinery production (44%: Q1FY20) and 58% of industry imports (54%: Q1FY20). A strong focus was maintained on infrastructural projects including the 203 KMTs of new storages, 176 KMTs of rehabilitated storages and 47.3 Km of pipeline projects.
Receivables from the power sector reduced by PKR 2.3 billion during the period under review whereas receivables from SNGPL remained an area of concern. As of September 30, 2020, the Company’s receivables from SNGPL stood at PKR 68.1 billion. The management is rigorously following-up with concerned authorities for the early settlement of outstanding receivables.
These results demonstrate PSO’s agility and strength across its diverse portfolio. As the environment continues to evolve, the Company remains committed to sustainable growth and profitability.