Pakistan State Oil (PSO) reported an 11% increase in Gross Profit and a Profit-After-Tax (PAT) of Rs 15.5 billion in FY2018. The overall financial performance of the Company remained strong with an increase of 20% in Sales Revenue over last year to Rs 1.1 Trillion (FY2017: 0.9 Trillion).
Company convened its Board of Management (BoM) meeting at PSO Headquarters in Karachi to review performance of the Company for the financial year ended June 30, 2018.
PSO increased its gross profit despite a steep decline in Black Oil demand by 29.6%. Reduction in markup received from PIBs due to their maturity in July 2017 by Rs 4.3 billion, and reversal of deferred tax asset due to decline in future corporate tax rates by Rs 1.3 billion are the main contributors in reduction of profit after tax by Rs 2.7 billion in FY2018.
PSO closed the year with a cumulative market share of 50%. The growth in MOGAS at 10.1% and HSD at 2.4% is the highest recorded in the last three years. The Company also increased its dominance in Aviation Fuels by commissioning a state-of-the-art refueling facility at the New Islamabad International Airport (NIIAP).
The Company is the market leader with 79.2% market share in aviation fuels and currently operates at all 10 airports in Pakistan.
In the non-fuel retail (NFR) segment, PSO has moved to strengthen its operations by revamping and diversifying its Shop Stop (13 in total in FY2018) and increasing the number of ATMs (50 in FY2018) at its retail outlets nationwide. The revenue of this segment has increased by 69%.
During FY2018, PSO also introduced higher-grade RON 97 HOBC gasoline in line with the Company’s objective of following Government’s directives of improving the quality of fuels for the consumers.
The Company received ISO-9001; 2015 certification as part of its goal for setting up a Quality Management System.
The excellence in financial reporting was again acknowledged as PSO secured 3rd position in Best Corporate Report Awards in the Oil and Gas Sector, by ICAP and ICMAP. The Company also secured joint second runner up position in SAFA best presented Annual Reports Awards held by the South Asian Federation of Accountants.
PSO has taken initiatives in ensuring safe fuel transportation and has been making progress despite strikes and continued attacks on the compliant fleet of the Company.
During the fiscal in review, the power sector also continued to make short payments against the supply of FO provided on their demand, thereby putting additional pressure on the Company’s cash flows. The outstanding receivables have increased by Rs 24 billion.
Based on the performance of the Company, the Board of Management has declared a final cash dividend of Rs 5 per share (50%) and a stock dividend of 20% (i.e. 1 share for every 5 shares held) which is in addition to the interim cash dividend of Rs 10 per share. The dividend (including stock dividend) for the financial year 2018 stands at Rs 17 (170%) per share.
PSO expresses sincere gratitude to all employees, stakeholders and partners for their contributions and unflinching support. The Company also takes this opportunity to thank the Government of Pakistan, especially the Ministry of Energy, Petroleum Division, for their continuous support and guidance.