PSO profits up 42pc in July-March

KARACHI: The Pakistan State Oil (PSO), the largest oil marketer in the country, on Friday announced a 42 percent increase in its net profit to Rs4.59 billion for the first nine months of the current fiscal year as the state-run company witnessed a decline in cost of sales.

The company’s net profit amounted to Rs3.24 billion in the same period a year earlier, said a filing to the Pakistan Stock Exchange. It posted earnings per share of Rs16.91 for July-March 2015/16 as compared to Rs11.93 in the same period last year.

During the first nine months of the current fiscal year, the company’s gross revenue fell 21 percent to Rs650.74 billion.  The company reported that its cost of sales fell 29 percent to Rs475.08 billion. Operating cost and financial cost also remained low that helped increase the profit margins.

During the quarter ending March 31, the company reported a loss of Rs520 million as falling oil prices bit its inventory. Other income of the company also declined 37 percent to Rs1.6 billion during the period.

During the period under review, the PSO continued to hold its market position in the industry despite stiff market conditions with an overall market share of 55 percent, a statement said.

“A growth of 2.4 percent was witnessed in total liquid fuels sales volume over the same period last year, which was primarily driven by growth in sales volume of white oil and black oil by 3.9 percent and 0.9 percent respectively,” the company’s added.

Major increase was witnessed in motor gasoline sales, which increased 13.5 percent amid lower local petroleum prices and increased motor vehicle population. 

PSO black oil sales volume increased 0.9 percent despite 5.3 percent decrease in industry volumes, owing to increased availability of natural gas /re-gasified liquefied natural gas to power producers.