Pakistan State Oil (PSO) announced its financial results for the first half-year ended December 31, 2020.
During the first half of the fiscal year 2020-21, Pakistan State Oil (PSO) earned a net profit after tax of Rs. 9.5 billion, an increase of 48 percent compared to Rs. 6.43 billion in the same period last year despite the challenges posed by the pandemic.
PSO’s Board of Management (BoM) reviewed the performance of the company together with its subsidiary Pakistan Refinery Limited (PRL) for the first six months of the financial year 2020-21 (1HFY21) during the meeting held at PSO House, Karachi on February 17, 2021.
During the period under review, PSO further consolidated its position as the market leader and outperformed the industry. The company registered a staggering volumetric growth of 13.3 percent in liquid fuels with a market share of 46.4 percent. Mogas sales witnessed a volumetric growth of 14.2 percent, with market share soaring by 2 percent, which stood at 41.1 percent.
Similarly, Hi-Cetane Diesel recorded an astounding volumetric growth of 19.5 percent, with a market share of 47.6 percent, a market share increase of 2.7 percent. White Oil volumes grew by 10.1 percent, with a market share of 45.1 percent. While Black Oil volumes also grew by 27.8 percent.
According to a statement issued by the company, PSO became the first OMC to upgrade Pakistan’s fuel standard from Euro 2 to Euro 5 and launched Hi-Octane 97, Mogas, and Hi-Cetane Diesel accordingly. The company also commissioned its first Electrical Vehicle charging unit in Islamabad under the brand name ‘Electro’ in July 2020. PSO further enhanced its infrastructure with the development and rehabilitation of 44,000 metric tons of POL storage and the addition of 16 new vision retail outlets and 15 new convenience stores to its retail network.
During the period under review, Pakistan Refinery Ltd. improved its bottom line and reported a profit of Rs. 85 million vs. a loss of Rs. 1.7 billion. PRL also managed to resume refinery operations swiftly after the disruption caused by damaged intra-city pipelines owing to heavy rainfall and flooding in August 2020.
On a consolidated basis, the Group achieved a net profit of Rs. 9.3 billion as compared to Rs. 4.3 billion in 1HFY 20. Multiple factors, including savings in sulfur price differential, reduced finance costs, and exchange gain contributed significantly to the positive results.
Based on the exceptional performance of the company during the period, the Board approved a cash dividend of Rs. 5 per share translating into a cash payout of Rs. 2.35 billion. These results demonstrate PSO’s agility and strength across its diverse portfolio. As the business environment continues to evolve, the company remains committed to sustainable growth and profitability while creating value for the shareholders.
PSO’s scrip at the bourse was closed at Rs. 246.75, down by Rs. 10.65 or 4.4%, with a turnover of 2.5 million shares on Thursday.