PSO posts Rs 18.2b profit in 9MFY21
PSO outpaces energy market despite facing challenges of circular debt and Pandemic
Aftab Ahmed
Islamabad: Pakistan State Oil (PSO) outpaces the energy market. It makes a net profit of Rs 18.2 billion after-tax during the nine months of the fiscal year 2020-21 (9MFY21) despite epidemics’ challenges.
The company has been facing challenges of circular debt and the Covid-19 pandemic.
Despite swelling circular debt of over Rs 300 billion, PSO has been supplying fuel oil to the customers. The power sector is a big defaulter of PSO that is to pay Rs 196 billion on account of fuel supply.
Pakistan State Oil (PSO) has also outperformed on the stock market as its share price went up despite uncertainty in the stock market.
The company is also facing a big challenge of circular debt in the LNG sector. SNGPL is to pay Rs 116 billion to PSO on account of LNG supply.
Board of Management (BOM) of PSO House, Karachi on April 29, 2021, during a meeting held at PSO House, Karachi Reviewed the company’s performance.
During 9MFY21, the company recorded a staggering 21.6% increase in volume compared to the same period last year, while the market share increased by 260 basis points (bps) to close at 46.3%.
With a 19.9% increase in volumes in Mogas and a 28.2% increase in HSD, the market share of both products increased to 310 and 370 bps, respectively.
Overall, PSO’s white oil market share increased by 190 bps over the same period last year, closing at 44.9% and black oil closed at 52.8%, a hike of staggering 480 bps.
Leading the sustainable energy revolution, PSO continued to drive innovation in the development by enhancing its digital capabilities.
The launch of High Octane 97 Euro 5, Premier Euro 5, and High Octane Diesel Euro 5 proved to be game-changers in the industry, boosting consumer confidence in PSO products.
Forming its value creation model, the company prioritized high-margin products, launched EV charging facility, and fast-track infrastructure projects to achieve operational efficiency.
PSO also focused on re-engineering automation, card digitization, and business processes to meet the needs of rapidly changing stakeholders and customers.
PSO has recently changed its procurement tender process through SAP Ariba, which will significantly enhance the company’s strategy and operational capabilities, efficiency, and reduce turnaround time.
The company exhibited strong operational performance and strategic thrust that translated into an exceptional profit after tax of Rs18.2 billion n 9MFY21 compared to Rs 3billion in 9MFY20.
The significant increase in profits is mainly due to the additional cost of pricing, reduction in costs in the financial years, and lower discount rates during the period which led to the increase in gross profit.
PRL, a subsidiary of PSO, also reported a profit after tax of PKR 0.6 billion during the review period compared to a loss of Rs 6.8 billion. On a stable basis, the group posted a profit of Rs 18.3 billion after-tax in 9MFY21 compared to a loss of Rs 4.4 billion during the same period last year.
These results demonstrate the dynamism and power of PSO in its diverse portfolio. As the business environment evolves, the company is committed to sustainable growth and profitability while creating value for its shareholders.
The management would like to thank all the stakeholders for its continued support and guidance, including its BM, GOP, Ministry of Energy, and shareholders of the company.
