Pakistan State Oil’s outstanding receivable amounts from various commercial clients stand at Rs. 304 billion, which is hurting its businesses, operations and profitability.
The company 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 as compared to Rs. 313 billion as of December 31, 2017.
The management is continuously pursuing the Ministry of Finance to intervene and inject funds in order to settle the said outstanding receivables as well as clear the payment for Furnace Oil and LNG supplies of Rs. 130 billion planned for April-June 2018.
In the quarter of January to March, PSO made a profit of Rs. 4.7 billion with a growth of 13 percent on a year-over-year basis. However, its nine-month profit dropped by 7.5 percent to Rs. 13.2 billion as compared with 14.2 billion in the last financial year.
During the nine-month period, PSO imported 66% of total industry imports and refinery upliftment was 37% of the total refinery production (10% volumetric increase over SPLY).
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%.
The influx of smuggled products, volatile fuel demand from the power sector and hurdles in the induction and smooth movement of NHA/OGRA compliant tank lorries by the transport union will be key challenges for the company in the comings months.