Pakistan State Oil (PSO) continues to outperform the energy market, earning a net profit after tax of Rs. 18.2 billion during the nine-month period for the financial year 2020-21 (9MFY21), showing an increase of 508% or 5.8x compared to Rs. 3 billion in the same period last year despite the challenges posed by the pandemic, which demonstrates its resilience and dependability.
The significant increase in profit is primarily attributable to an increase in gross profit on account of the volumetric increase supplemented by a favorable price regime, the reduction in finance cost, and a lower discount rate prevalent during the period.
During 9MFY21, the company registered an astounding volumetric growth of 21.6 percent over the same period last year while increasing market share by 260 basis points (bps) closing at 46.3 percent.
With a volumetric gain of 19.9 percent in MOGAS and 28.2 percent in HSD, the market shares of both the products increased to 310 and 370 bps respectively.
Cumulatively, PSO’s white oil market share increased by 190 bps over the same period last year to close at 44.9 percent, and black oil closed at 52.8 percent, which is an increase of a staggering 480 bps.
Leading the sustainable energy revolution, PSO continued to boost innovation to drive growth while enhancing its digital capabilities.
The launch of Hi-Octane 97 Euro 5, Premier Euro 5, and Hi-Cetane Diesel Euro 5 proved to be game-changers in the industry, bolstering customer’s confidence in PSO’s products.
Building on its value creation model, the company prioritized high margin products, launched an electronic vehicle (EV) charging facility, and fast-tracked infrastructural projects to gain operational efficiency.
PSO’s subsidiary PRL also reported a profit after tax of Rs. 0.6 billion during the period under review versus a loss of Rs. 6.8 billion in 9MFY20. On a consolidated basis, the Group achieved a profit after tax of Rs. 18.3 billion in 9MFY21 vs. loss after tax of Rs. 4.4 billion in 9MFY20.
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.
The management expressed its sincere gratitude to all the stakeholders, including its BoM, the Government of Pakistan, the Ministry of Energy, and the company’s shareholders, for their continued support and guidance.
PSO also increased its focus on automation, digitization, and business process re-engineering to meet fast changing stakeholder and consumer needs.
It recently transformed its procurement process through SAP Ariba which will significantly enhance its s strategic and operational capabilities, increase efficiency and reduce turnaround time.