PSO Losses Swelled to Rs 10.4 Billion

By Newztodays Team

PSO losses have swelled to Rs 10.4 billion in consolidated losses as expenses surge due to failure in managing finances amidst economic fluctuations.

Pakistan State Oil (PSO), the country’s largest company faces massive increases in consolidated losses following massive hikes in operating and financial expenses.

The company faces consolidated losses worth Rs 10.43 billion in the second quarter of the fiscal year 2023-24.

The company faced a loss of Rs 2.08 billion after tax during the same period last year.

This shows how the company management has failed to control the operating and financial expenses which had contributed massive increase in losses. Govt Decides to Transfer Shares in NandiPur and Guddu Plants to PSO

PSO also witnessed a massive per share loss of Rs25.09 in 2QFY24 which stood at Rs6.24 in the same period last year.

According to the statement, the company reported a net profit of PKR 7.7 billion, with earnings per share at PKR 16.51 and gross sales reaching PKR 1.9 trillion for the period.

In the meeting held on February 15, 2024, the company’s Board of Management (BoM) reviewed the group’s performance for the half-year ended December 31, 2023. During this period, the group posted a net profit of PKR 12.2 billion, translating into earnings per share of PKR 26.01.

Despite challenges such as inflation, stagnant growth, and geopolitical tensions affecting the petroleum sector’s demand, PSO effectively managed to ensure uninterrupted nationwide fuel supply.

PSO managed to increase its market share in white oil by 1.9%, reaching 52.6% by the end of the period.

Additionally, PSO maintained its leading position in the diesel market with a share of 55.3%. Despite a 57.4% decline in sales of the black oil segment on a YoY basis due to reduced furnace oil-based power generation, PSO continued to dominate this market, selling 153 KMT during the period.

Furthermore, PSO enhanced its infrastructure by completing 91 KMT of new storage at Faqirabad, Faisalabad, and Mehmoodkot, thereby solidifying its position as the OMC with the largest storage capacity in the country, totaling 1232 KMT.

Additionally, the company successfully rehabilitated 24 KMT of storage facilities at Sihala and Zulfiqarabad, with ongoing efforts to enhance capacity by 23 KMT across terminals including ZOT, Habibabad, Sihala, and Mehmoodkot.

PSO increased its retail presence by adding 21 new outlets, bringing the total to 3,547. The company also implemented a precise meter billing and invoicing system for retail customers at Keamari Terminal A (Karachi), enhancing operational precision through digitalization.

In the aviation sector, PSO demonstrated its presence by adding Quetta airport to its portfolio and taking charge of Operations & Management responsibilities for Sukkur and Nawabshah Airports, increasing its jet fuel operations to encompass a total of 14 airports nationwide.

Aligned with its core values of caring and giving, PSO continued its impactful contributions through its CSR Trust, with ongoing support in 1HFY24 exceeding PKR 127 million to various charitable organizations focusing on healthcare, education, youth development, social enterprise advancement, and poverty alleviation.

Despite challenges such as escalating trade receivables and heightened borrowing expenses, PSO’s Board is actively engaged in constructive dialogue with relevant authorities to address these concerns.

PSO remains committed to driving the nation’s economy forward by actively pursuing digitization, process optimization, operational reliability, capacity enhancement, enriching customer experience, and generating shareholder value through strategic long-term projects and plans.

The management extends sincere gratitude to all stakeholders, including the Board of Management, the Government of Pakistan, the Ministry of Energy (Petroleum Division), shareholders, and employees, for their continued support and trust.