Pakistan State Oil posts Rs 14.7 billion revenue in FY11

KARACHI: Pakistan State Oil (PSO) has posted record results for the financial year 2011 and announced an after tax earnings of Rs 14.7 billion as compared to earnings after tax of Rs 9.05 billion during the previous financial year.

These results were declared after PSO’s Board of Management (BoM) convened on Tuesday at PSO House to review the company’s performance over the fiscal year 2010-11. Despite financial challenges posed by the ever increasing circular debt and the economic slowdown, PSO maintained its position as the market leader with a market share of 78.2% and 54.4% in the black oil and white oil segments respectively, thereby contributing to an overall market share of 65.6%. PSO sold 12.6 million tonnes of POL products in FY 11 with net sales revenue growing to Rs 975 billion compared with Rs 877 billion in the previous year.

The BoM declared a final cash dividend of Rs 2 per share in addition to the already paid interim dividends at Rs 8 per share. Earnings per share also registered an improvement to Rs 86.17 per share from Rs 52.76 per share last year. While expressing their confidence in the strategic vision and managerial skills of the PSO management, the Board nevertheless expressed serious concern over the spiralling receivables which stood at Rs 138.2 billion as of August 9, 2011. They observed that the financial costs associated with servicing this debt coupled with consistent delays in payment from the power sector continued to hurt the overall profitability of the company.

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