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PSO’s after tax profit climbs to Rs3.3bn in FY 2016

PSO’s after tax profit climbs to Rs3.3bn in FY 2016

[dropcap]P[/dropcap]akistan State Oil (PSO), is the largest oil marketing company and is continuing to supply greater than its market share to ensure an uninterrupted availability of petroleum products in the entire country. Despite all the issues on liquidity front, the Company is providing its customers with fuel for transportation, energy for heat and light, retail services and petrochemicals products for industrial and individual needs. PSO’s after tax profitability has risen by Rs3.3 billion in FY 2016 as against to FY 2015. This rise was mostly because of: fall in finance cost by Rs3.9 billion on account of reduction in borrowing rates due to falling KIBOR and reliance on cheaper FE-25 borrowings, fall in other expense by Rs1.5 billion chiefly because of fall in provision against doubtful trade debts by Rs1.5 billion. However, the rise in company’s profitability was partly offset by various factors such as:fall in other income by Rs0.9 billion chiefly because of less receipt of interest from IPPs, rise in marketing and administrative expenses by Rs0.2 billion in line with the inflationary trend, rise in taxation by Rs0.9 billion because of rise in profit.

The finance managers of the company have calculated the performance of PSO for the nine months period from July to March of financial year 2016-17 (9MFY17). During 9MFY2017, they also calculated that the volumetric growth in Mogas of 11 percent in HSD of 12 percent in JP-1 of 22 percent and in FO of 15 percent over the same period previous year. Whereas LPG business identified a growth of 132 percent, CNG business grew by 15 percent, lubricants sales volume rose by 25 percent, whereas LNG business rose by 107 percent over the corresponding period last year.



Moreover, Pakistan State Oil continued to lead the liquid fuel market with an overall market share of 55.1 percent. The market share of black oil increased to 72.7 percent from 69.5 percent over the same period last year, whereas the market share in white oil reached at 44.6 percent as against 54.9 percent over the same period last year. Additionally, the company imported 69 percent of industry imports to ensure uninterrupted product supply in the whole country, furthermore refinery upliftment enhanced to 37 percent and new cards business solution went live in March 2017.

Because of commitment of staff/employees/employers, the management of PSO had profit after tax of 14.2 billion during the period under review. This was because of favorable growth of sales volume and net margin and reduction in finance cost during the period due to effective treasury management. The outstanding receivables as of March 31, 2017 reached at Rs285.5 billion against supplies of black oil, white oil and LNG. The receivables position imported when Rs20 billion was injected in February 2017 because of the intervention of MPNR/MoF/MoM&P.

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