Pakistan State Oil Company Limited (PSO) on Friday declared massive growth in net annual profit of 224 per cent to Rs95.72 billion for the year ended June 30, 2022.
The state oil company announced profit after tax at Rs95.72 billion for the year ended June 30, 2022 as compared with Rs29.55 billion in the preceding fiscal year.
PSO announced Earnings Per Share (EPS) of Rs194.35 for the fiscal year under review as compared with Rs62.63 in the preceding fiscal year.
According to consolidated financial results submitted to Pakistan Stock Exchange (PSX), the Board of Directors of PSO in their meeting on August 26, 2022 approved final cash dividend for the financial year ended June 30, 2022 at the rate of Rs10 per share i.e. 100 per cent.
According to the consolidated results, the net sales of the company surged to Rs2,541.73 billion for the year ended June 30, 2022 as compared with Rs1,223.68 billion in the preceding year.
The gross profit of the company jumped to Rs178.13 billion for the fiscal year 2021/2022 as compared with Rs57.25 billion in the preceding fiscal year.
Annual expenses of PSO also increased to Rs37.62 billion as compared with previous year’s Rs20.69 billion.
Profit from operations sharply increased to Rs165.83 billion during fiscal year 2021/2022 as compared with Rs55.98 billion.
ISLAMABAD: An amount of Rs30 billion has been approved for Pakistan State Oil (PSO) to avoid payment default.
The approval has been given at a meeting of Economic Coordination Committee (ECC), which was held in Islamabad on Sunday with Minister for Finance and Revenue Miftah Ismail in the chair.
For the smooth continuity of oil and gas national supply chain and avoid PSO from being default on international payments, the ECC decided to clear the outstanding payments accumulated during the period of pervious government and approved an amount of Rs30 billion rupees as supplementary grant for PSO receivables.
It was also decided in the meeting that Power Division will make immediate payments of the current outstanding amounts of Rs20 billion by tomorrow [August 01, 2022] and Rs12.8 billion by August 04, 2022.
The ECC also directed Finance Division and FBR to submit proposal for generation of Rs30 billion through taxes within a week.
On another summary of Petroleum Division on price mechanism of petroleum products, the ECC accepted the proposal to use the average of exchange rate for the relevant period rather than the exchange rate of the last day for the current as well as future price determinations.
The ECC directed Petroleum Division to work out options in consultation with OGRA for setting up petroleum product prices within a week.
The ECC directed the Petroleum Division to submit a proposal within a week to regulate the prices of Kerosene Oil and Light Diesel Oil after consultation with relevant stakeholders.
KARACHI: Pakistan State Oil Company Limited (PSX: PSO) has declared massive growth of 245 per cent in net profit for the six months ended December 31, 2021.
According to financial results submitted to the Pakistan Stock Exchange (PSX) on Friday, the company declared Rs31.92 as profit after tax for the six month period ended December 31, 2021 as compared with Rs9.26 billion in the same half of the last year.
The company declared Rs68.20 as earnings per share (EPS) for the period under review as compared with EPS of Rs19.93 in the same period of the last year.
The board of management of the company in the meeting held on Friday and recommended a ‘nil’ dividend.
Net sales of the company surged to Rs998.77 billion for the half year ended December 31, 2021 as compared with Rs580.98 billion in the corresponding half of the last year.
The gross profit of the company was at Rs50.16 billion as compared with Rs21.38 billion.
Administrative costs increased to Rs1.81 billion during the six month period ended December 31, 2021 as compared with Rs1.72 billion in the same period of the last year.
KARACHI: Pakistan’s domestic oil sales in October 2021 recorded 1.99 million tons, which is the highest since May 2018, analysts at Topline Research said on Tuesday.
Pakistan’s oil sales have increased by 17 per cent YoY to 1.99 million tons in October 2021 (and also up 3 per cent MoM), which is the highest monthly sales after May-2018.
In first four months of fiscal year 2021/2022, Pakistan oil sales have increased by 22 per cent YoY to 7.8 million tons driven by macro recovery.
High Speed Diesel (HSD) registered strong growth in October 2021 and was up by 25 per cent YoY to 0.8 million tons. The analysts attribute the growth to increased transportation activity and Large Scale Manufacturing (LSM) growth.
Petrol sales were up 12 per cent YoY to 0.8 million in October 2021 led by rising car sales. This is despite a 12 per cent increase in petrol prices during the month indicating strong demand.
Furnace Oil (FO) sales also grew by 12 per cent YoY to 0.3 million tons. FO growth may improve further in the winter season as Pakistan is likely to witness gas and RLNG shortages.
Amongst the listed companies, Pakistan State Oil (PSO) and Shell Pakistan (SHEL) remained outperformers as sales were up 35 per cent YoY and 22 per cent YoY, respectively.
On other hand, Hascol Petroleum (HASCOL) and Attock Petroleum (APL) reported sales decline of 73 per cent YoY and 3 per cent YoY, respectively.
PSO achieved a market share of 52 per cent in October 2021 compared to 45 per cent in October 2020. MS and HSD sales of PSO have grown by 32 per cent and 46 per cent YoY, respectively.
SHEL sales were mainly led by higher HSD and MS sales (up 38 per cent YoY and 11 per cent YoY, respectively). APL lower sales were mainly owing to 42 per cent YoY lower FO sales.
HASCOL continued to face sales decline across all the segments driven by its liquidity crunch.
KARACHI: Pakistan State Oil (PSO) on Thursday announced a massive jump in its quarterly net profit by over 120 per cent for the period ended September 30, 2021.
According to consolidated results, the profit of the company surged to Rs11.53 billion for the quarter ended September 30, 2021, as compared with Rs5.22 billion in the same quarter of the last year.
PSO announced Rs24.93 as earning per share for the quarter ended September 30, 2021 as compared with Rs11.07 in the same quarter of the last year.
The company in its board of management meeting held on October 28, 2021 approved the results and recommended no dividend for the period.
The company posted a gross profit of Rs 22.1 billion with gross margins set at 4.80 per cent in the first quarter of 2021/2022 compared to gross profit of Rs 11.5 billion (4.09 per cent gross margins) in the prior year.
Analysts view noteworthy changes in ex-refinery prices that resulted in inventory gains of around Rs 7 billion in 1QFY22 compared to inventory gains of Rs 1.5 billion in same period last year.
Other operating income decreased by 87 per cent QoQ to Rs 1,786 million in 1QFY22. We believe, absence of Late Payment Surcharge (LPS) resulted in decline in other income.
Meanwhile, finance costs nosedived by 92 per cent QoQ and 27 per cent YoY to Rs 626mn which is owing to lower reliance on short term borrowings and lower interest rates, we view.
The company recorded effective taxation at 32.6 per cent in 1QFY22 compared to 33.0 per cent in 1QFY21.
KARACHI: Pakistan oil sales have increased by 26 percent Year on Year (YoY) to 1.93 million tons in September 2021 as compared with 1.52 tons in the same month of the last year, a report suggested on Friday.
The same is likely to remain largely similar on a Month on Month (MoM) basis due to rising pump prices, lower transportation activity, and lower furnace oil demand, according to analysts at Topline Securities.
In the first quarter of the current fiscal year, Pakistan oil sales are likely to clock in at 5.8 million tons, which will be the highest quarterly sales since the fourth quarter of fiscal year 2017/2018.
Growth in oil sales in September 2021 has mainly been driven by higher petrol and High Speed Diesel (HSD) sales that were up by 23 percent YoY and 46 percent YoY, respectively. This has been on account of increased economic activity and rising car and bike sales. Furnace Oil sales also increased by 8 percent YoY to 0.4 million tons.
Company wise data shows that Pakistan State Oil (PSO), Shell Pakistan (SHEL) and Attock Petroleum (APL) remained major gainers whereas Hascol Petroleum (HASCOL) lost market share.
PSO sales improved by 39 percent YoY to 1.0 million tons as the company continued to witness higher sales in all fuel segments with its market share increasing to 50 percent in September 2021 as against 46 percent in September 2020.
SHEL also reported a 32 percent YoY increase in sales, while APL sales were also up by 22 percent YoY to 0.2 million tons. On the other hand, HASCOL’s sales declined by 57 percent YoY.
The analysts expect Pakistan oil sales to remain strong and anticipate sales growth of around 15-20 percent in fiscal year 2021/2022.
KARACHI: Prudent planning and strategic thinking. Pakistan State Oil (PSO) has enabled considerable savings and created value for end users by taking the following steps:
As of today, PSO has scrapped the spot tender for October 22-23, 2021, and replaced it with cargo under the long-term contract from Qatar Gas using contractual provisions and prudent rescheduling, said a statement issued on Wednesday.
PSO strategically planned for winters (Jan-Feb 2021 & Nov-Dec 2021) in advance, when spot prices are usually at their highest, and arranged 28 cargoes instead of 20 under long-term contracts (6 cargos each in Jan and February 2021 & 7 cargoes each in November and December 2021). This has been planned to meet the ever-increasing gas demand in winters at the lowest possible rates. Compared with current spot market rates, this translates into approximate savings of $295 million.
PSO has also enabled considerable savings by reducing the number of spot cargoes from 12 to 4 in the year 2021 using contractual provisions available while maximizing long-term cargoes through contracts from 60 to 70.
Furthermore, the company has reduced the suspension period of LNG supply in Sep 2021 owing to scheduled FSRU dry dock activity from approximate 90 hours to 60, by bringing the FSRU laden with cargo under the long-term contract with Qatar, thereby curtailing the downtime for the industry and saving considerable cost to the economy.
PSO is committed to safeguarding Pakistan’s national interest through effective planning and making the best possible decisions.
KARACHI: Pakistan State Oil (PSO) has announced a record breaking gross revenue of Rs1.4 trillion and highest ever profit after tax of Rs29.1 billion for the financial year 2020-2021 (FY21) after a loss after tax of Rs6.5 billion in the preceding year.
The net profit translated into a healthy earning per share of Rs62.07 vs. loss per share of Rs13.77 in the preceding fiscal year.
The announcement came after PSO’s Board of Management (BoM) reviewed the performance of the company together with its subsidiary Pakistan Refinery Limited (PRL) for the financial year 2020-21, ended on June 30, 2021, during the meeting held on August 23, 2021 in Islamabad.
Based on the outstanding financial and operational performance of the company, the Board of Management has announced a final dividend of Rs 10/- per share (100 per cent) which is in addition to the interim cash dividend of Rs 5/- per share (50 per cent) for financial year 2020-21.
The dividend for the financial year stands at Rs 15/- per share (150 per cent).
PRL, a subsidiary of PSO, also reported a profit after tax of Rs 0.94 billion during the year compared to a loss of Rs 7.6 billion in the previous year. On a consolidated basis, the group achieved a profit after tax of Rs 29.6 billion in FY21 compared to loss after tax of Rs 14.8 billion in FY20.
The board noted that these results have demonstrated PSO’s agility and strength across its diverse portfolio despite the challenging economic scenario and recurrent waves of the pandemic. PSO is leading the market by a large margin, delivering a phenomenal performance over and above the industry average.
The company exhibited an outstanding growth of 21.9 per cent in liquid fuels over last year with volumes reaching 9.2 million tons, attaining a market share of 46.3 per cent in FY21 compared to 44.3 per cent in FY20. PSO also achieved its highest ever volume of 7.6 million tons in the white oil segment despite the shrinking jet fuel and kerosene oil industry, with a market share of 45.2 per cent in FY21 vs. 44 per cent in FY20 i.e. a growth of 120 basis points (bps).
PSO set an all-time high record in Motor Gasoline (MoGas) achieving volumes of 3.5 million tons, an increase of 21.2 per cent from FY20, translating into market share of 41.3 per cent vs. 38.7 per cent last year – an increase of 260 bps.
The company made a strong closing in Hi-Cetane Diesel as well, achieving a volumetric growth of 21.1 per cent vs. industry growth of 17.5 per cent, translating into volumes of 3.7 million tons in FY21. The volumes contributed in regaining market share, bringing it to 47.2 per cent vs. 45.8 per cent in the preceding year i.e. an increase of 140 bps. PSO attained a volumetric growth of 53.2 per cent in black oil with volumes of 1.7 million tons and a market share of 51.7 per cent vs. 46 per cent in FY20.
In line with GOP’s clean and green initiative, PSO was the first OMC to upgrade the country’s fuel standard from Euro 2 to Euro 5. The launch of Hi-Octane 97 Euro 5, Premier Euro 5 and Hi-Cetane Diesel Euro 5 proved to be game changers in the industry, bolstering customer’s confidence in PSO’s products.
Building on its value creation model, the company prioritized high margin products i.e. High-Octane 97 Euro 5 and lubricants adding significant revenues with a volumetric growth of 177.6 per cent and 11.3 per cent respectively compared to last year. PSO’s first EV charging facility – Electro was also launched in Islamabad.
This performance is also a strong indicator of the change and transformation going on within PSO. With a focus on innovation and technology, PSO continued to enhance its digital capabilities to drive growth and enhance efficiency.
The company made significant strides on its journey of digital transformation with the launch of Pakistan’s first digitally integrated oil storage & dispatch terminal in Karachi. PSO also became the first public sector entity to launch e-procurement through SAP Ariba. Other automation initiatives included the launch of PSO Sahulat – an online order management system for dealers, Automated Queue Management System for tank-lorries and internal applications for fund management and employees leave management.
The company fast tracked infrastructural projects to gain operational efficiency. 174,000 tons of new and rehabilitated storages were added which significantly increase the number of day’s cover of petroleum products. Pipeline links have been completed to connect operational locations with White Oil Pipeline to make product movement safer and more efficient. 71 new vision retail outlets were also added to the company’s footprint.
Living up to its promise of keeping the wheels of the nation’s economy in motion and ensuring a seamless supply of fuel, the company imported 4.9 million tons of white oil products, an all-time high since the inception of the company. PSO has also played a pivotal role in the LNG sector. The company entered into another agreement with Qatar Petroleum under G2G arrangement to supply an additional 3 million tons of LNG for a period of 10 years. This contract shall add additional volumes to an already executed 15-year long term sales purchase agreement (SPA), making PSO the largest supplier of LNG in the country with a supply base of 6.75 million tons per annum.
With the burden of circular debt still large, to improve its balance sheet further, PSO recovered Rs 25.8 billion from the Power Sector along with late payment surcharge income. Reduction in finance cost by Rs. 3.2 billion. (24 per cent) further complemented the profitability of the company.
In a statement on Sunday the company clarified that:
No cargo from long-term supply contract in September has been dropped or canceled by PSO as reported by certain media outlets. As per the Annual Delivery Plan (ADP) agreed with all stakeholders, 04 cargoes were to be supplied under the long-term contract in the month of September and 02 spot deliveries were planned.
PSO’s long-term contract for 60 cargoes a year is not equally divided over 12 months. PSO prudently planned winter (Jan-Feb & Nov-Dec) in advance, when spot prices are usually higher, and arranged 28 cargoes instead of 20 under the long-term contracts -24 cargoes from the existing long-term contract and 4 additional cargoes from the recently executed long-term contract commencing in January 2022 by exercising contractual rights. This has been planned to meet the ever-increasing gas demand in winters at the lowest possible rates.
PSO has enabled considerable savings through effective planning and contract management by reducing the number of spot cargoes from 12 to 6 this year using contractual flexibilities available while maximizing long-term cargoes through contracts from 60 to 70.
As far as the timing of the tenders is concerned, awarding cargoes ahead of the required delivery windows or awarding a strip of cargoes in one go does not suit PSO since the company has certain contractual flexibilities available under long-term contracts and spot purchases are very few in a year as mentioned above. For e.g. due to the unplanned Dry Dock activity of FSRU in Jun-Jul and uncertain situation in September considering scheduled FSRU replacement, had PSO awarded July and September spot cargoes in advance, the company would have had to either drop much cheaper contractual cargo or face Take or Pay penalty. Therefore, spot purchases are finalized after carefully seeing the demand-supply dynamics and market conditions.
The bids received against the required deliveries in September 2021 are yet to be awarded by PSO. As per procedure, the received bids will be presented to the company’s Board of Management along with the supply/demand situation & global price trends and a decision will be arrived at accordingly.
Considering that 2021 has seen exceptionally high LNG prices in international market, the planning and management of contract done by PSO will not only absorb the impact of higher spot prices but also result in potential savings. As the national flag bearer, PSO is committed to safeguarding national interest and leaves no stone unturned to fuel the country’s progress.
KARACHI: Pakistan State Oil (PSO) has declared five-time increase in net profit for nine-month period ended March 31, 2021. The unprecedented growth may be attributed to reduction in cost of products sold during the period.
According to financial results for nine-month period ended March 31, 2021 submitted to Pakistan Stock Exchange (PSX), the company announced an amount of Rs18.24 billion during first nine months (July – March) 2020/2021 as compared with profit of Rs3.01 billion in the corresponding period of the last fiscal year.
The gross sales of the company fell to Rs1,008.7 billion during first nine months of the current fiscal year as compared with Rs1,038.01 billion in the corresponding period of the last fiscal year.
The cost of products sold significant fell to Rs815.22 billion during July – March of 2020/2021 as compared with Rs867.18 billion in the same period of the last fiscal year.
PSO declared gross profit of Rs37.7 billion during first nine months of the current fiscal year as compared with Rs20.14 billion in the same period of the last fiscal year.
Operating cost of the company was remained flat at Rs8.06 billion during first nine months of the current fiscal year as compared with Rs8.07 billion in the same period of the last fiscal year.
PSO declared earnings per share at Rs38.86 for the nine months period ended March 31, 2021 as compared with Rs6.41 EPS in the same period of the last fiscal year.
