Pakistan State Oil announces After-Tax Profit of Rs 4.6 billion for 9MFY16

Karachi, April 29, 2016 (PPI-OT):The Board of Management (BoM) of Pakistan State Oil Company Limited (PSOCL) reviewed the performance of the Company for the nine months period from July to March of Financial Year 2016 (9MFY16) in its headquarter (PSO House) today at Karachi. Mr. Musadik Malik presided over the meeting.

The Company reported a Profit after Tax of Rs 4.6 billion for 9MFY15 as opposed to Rs 3.2 billion for 9MFY15. The increase was mainly due to growth in sales volume and margins of White Oil products revised in November 1, 2014 and reduction in Operating and Finance cost by 10% and 42% respectively. However, the said increase was partially offset by decrease in Black Oil margins due to reduced price impact of black oil.

During the period under review, PSO continued to hold its market leadership position in the industry despite stiff market conditions with an overall Market share of 55%. .whereas Market share of Black Oil products stood at 69% and Market share of White Oil products was 46%.

A growth of 2.4% was witnessed in total liquid fuels sales volume over Same Period Last Year (SPLY), which was primarily driven by growth in sales volume of White Oil and Black Oil by 3.9% and 0.9% respectively. Major increase was witnessed in Motor Gasoline sales, which increased by 13.5% over SPLY amid lower local petroleum prices and increased motor vehicle population. PSO Black Oil sales volume increased by 0.9% despite 5.3% decrease in industry volumes, owing to increased availability of natural gas / R-LNG to power producers.

The period under review also marked major achievement for the Company, when pursuant to long-term LNG Sale Purchase Agreement (SPA) signed in February 2016 with Qatar Liquefied Gas Company Limited2 (QG2), PSO received the first Q-Flex ship carrying approximately 3.4 million MMBTU of LNG from Qatar on March 1, 2016. LNG has proven to be a major game changer in the energy mix of Pakistan.

The outstanding receivables of Rs 224 billion (June 30, 2015: Rs 230 billion) from the power sector, PIA and SNGPL against supplies of FO, Aviation Fuels and Liquefied Natural Gas (LNG) will be a challenge as international oil price increases. The Management continues to work closely with Ministry of Water and Power and PIA for timely realization of due payments against uninterrupted fuel supplies to support the power sector and airline operations.

Social responsibility and community engagement are at the core of PSO’s vision and mission. Company is supporting various NGOs’ projects in the fields of education, healthcare and community building The Citizen Foundation, Karawan e Hayat, APWA, Indus Hospital, Patient’s Aids Society and many more. PSO will continue its contribution in welfare of the society by operating its program transparently and ethically.

The Company takes this opportunity to express gratitude to its shareholders, customers, business partners and other stakeholders for their trust and confidence in the Company and to the Government of Pakistan, especially the Ministry of Petroleum and Natural Resources for their continuous guidance and support. The Managing Director records the Company’s thank you to team PSO for their ceaseless efforts to ensure uninterrupted supplies of fuel oils despite all the challenges.

For more information, contact:
Hasan Saeed
Executive-Corporate Communications
Pakistan State Oil (PSO)
PSO House,
Khayaban-e-Iqbal, Clifton,
P. O. Box 3983,
Karachi 75600, Pakistan
UAN: +92-21-111-111-PSO (776)
Ta’aluq Care Line: 0800-03000
Tel: +92-21-99203866-85
Fax: +92-21-99203835