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Tag: PSO

  • Oil sales show continuous decline for 8th consecutive quarter

    Oil sales show continuous decline for 8th consecutive quarter

    KARACHI: The oil sales witnessed continued downward trend in first quarter of fiscal year 2019/2020 for 8th consecutive quarter and posted fall of 13 percent Year on Year (YoY).

    Major decline was witnessed in Furnace Oil (FO) and Hi Speed Diesel (HSD) to the extent of 29 percent and 16 percent YoY, respectively, analysts at Topline Securities.

    Quarterly sales in absolute terms clocked in at 4.4 million tons during 1QFY20, lowest in last 26 quarters. Excluding FO, sales are lowest in last 14 quarter low.
    Diesel sales continues to fall (down 16 percent YoY) for 6th consecutive quarter on the pretext of slowdown in economy, slower transportation activities and smuggling from Iranian border.

    FO sales fell by 29 percent YoY due to its lower requirement in power generation after availability of relatively cheaper fuels like RLNG/coal.

    During Sep 2019, oil sales went down by 19 percent YoY. On MoM basis, volumes were up 16 percent due to Eid holidays in August 2019.

    Among companies, PSO outperformed industry and peers by increasing its volumetric sales by 11 percent during 1QFY20 vs. fall of 13 percent YoY in industry sales.

    The company has increased its market share from 37 percent in 1QFY19 to 47 percent in 1QFY20 (flat QoQ).

    Hascol underperformed industry by posting decline of 68 percent YoY in oil sales during 1QFY20. Resultantly, market share of the company fell to 5% in outgoing quarter vs. 12 percent in 1QFY19.

    In Key risks to the sector include 1) further slowdown in the economy, 2) increase in turnover tax, and 3) currency depreciation.

    Key risks to the sector include 1) further slowdown in the economy, 2) increase in turnover tax, and 3) currency depreciation.

  • OMCs sales sharply decline by 25pc in 10 months

    OMCs sales sharply decline by 25pc in 10 months

    KARACHI: The sales of Oil Marketing Companies (OMCs) massively declined by 25 percent during first ten months (July – April) of current fiscal year owing to slowdown in economic activities.

    The sales of OMCs fell to around 15.28 million tons during July – April 2018/2019 as compared with 20.4 million tons in the same period of the last fiscal year.

    Analysts at Topline Securities attributed the massive fall in sales to slowdown in economic activities and sharp decline in furnace oil.

    They said that Pakistan OMCs sales continued to suffer, where volumetric sales for April 2019 nosedived 16 percent YoY on back of 33 percent YoY lower furnace oil volumes and decline in high speed diesel volumes by 18 percent YoY.

    FO sales continued to feel pinch amid availability of RLNG/Coal for power generation. While, HSD volumes are down on YoY basis due to slowdown in economic activities.

    Petrol sales touched 20-Month high (in absolute terms), +2 percent YoY vs. +17 percent YoY in April 2018.

    Lower growth in MS could be attributed to increase in its prices by around 15 percent YoY coupled with overall slowdown in economy.

    In MS oil segment, PSO witnessed increase in market share by 4.3ppts YoY to 39.6 percent, while Hascol share has declined by 8.3ppts YoY to 7 percent as the company has changed its focus from higher volumes to higher margins.

    Similarly, unlisted player GNO gained 3.4ppts YoY in its market share.

    On HSD front, Hascol has lost 7.5ppts YoY in its market share to 7.1 percent, while GNO has gained 7.5ppts YoY and now commands 12 percent of the market.

  • PSO declares 55 percent decline in net profit for nine-month period

    PSO declares 55 percent decline in net profit for nine-month period

    KARACHI: The net profit of Pakistan State Oil (PSO) has declined substantially by 55 percent to Rs5.92 billion for the period July – March 2018/2019 as compared with Rs13.22 billion in the corresponding period of the last fiscal year.

    According to financial results submitted to Pakistan Stock Exchange (PSX) on Monday for nine-month period ended March 31, the earning per share of the company also fell to Rs15.15 as compared Rs33.80 in the same period of the last year.

    The gross sales of the company was flat at Rs950.93 billion during July – March 2018/2019 as compared with Rs930.38 billion in the same period of the last fiscal year.

    The gross profit of PSO reduced to Rs23.88 billion for the nine-month period ended March 31, 2019 as compared with Rs28.87 billion in the same period of the last fiscal year.

    The profit of the company for the quarter January – March 2019 also fell to Rs1.67 billion as against Rs4.70 billion, posting 64 percent decline.

    Analysts at Topline Securities said that the company recorded loss of around Rs2.3 billion on petrol, while, gain of around Rs2 billion and Rs95 million on Furnace Oil (FO) and HSD respectively.

    Further, volumetric decline of 6 percent YoY in HSD/Petrol and 31 percent YoY decline FO sales also weighed on overall gross profits of the company.

  • ECC may approve sovereign guarantee for Utility Stores Corporation

    ECC may approve sovereign guarantee for Utility Stores Corporation

    ISLAMABAD: The Economic Coordination Committee of the Cabinet (ECC) may grant formal approval for sovereign guarantee for Utility Stores Corporation (USC) in its meeting scheduled for April 17, 2019.

    According to agenda of the ECC meeting scheduled for Wednesday, the ministry of industries and production had proposed for the sovereign guarantee for the public sector store chain in order to overcome its financial crisis.

    The USC is providing consumer items at low priced and subsidized rates to masses. The government has also approved an amount of Rs2 billion for Ramazan package to be provided to masses through the USC.

    In other agenda items, the ECC may approve an amount of Rs700 million in favour of National Commission for Human Development under the ministry of federal education and professional training.

    A supplementary grant of Rs337.02 million likely to be approved in respect of Gilgit-Baltistan Council for Financial Year 2018/2019.

    Provision of supplementary grant of Rs1.33 billion to department of immigration and passport likely to be approved.

    Further, on the recommendation of petroleum ministry, the ECC likely to approve utilization of Railways services by PSO for transportation of petroleum products.

  • PSO receives Rs60 billion from power companies

    PSO receives Rs60 billion from power companies

    KARACHI: Pakistan State Oil (PSO) has said it received Rs60 billion as partial settlement of receivable from power sector companies.

    In a notice to Pakistan Stock Exchange (PSX) on Monday, the state run oil marketing company said that it had received an aggregate amount of Rs60 billion as partial settlement of receivables related to certain power sector companies on March 01, 2019 after close of normal business hours.

    Consequently, PSO’s principal receivables balance from these power sector companies has reduced accordingly. The amount received by the company has been used for partial repayment of its bank borrowing, the company said.

  • PSO declares 50% decline in net profit for first half

    PSO declares 50% decline in net profit for first half

    KARACHI: Pakistan State Oil (PSO), the state-run oil company, has announced a 50 percent decline in net profit for the half-year period ending on December 31, 2018, as revealed in the financial results submitted to the Pakistan Stock Exchange (PSX) on Monday.

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