KARACHI: Pakistan State Oil Co. (PSO), the country's largest oil marketer, reported a bigger-than-expected quarterly loss on Thursday, as operating and financial costs soared amid a downturn in the petroleum sector.
The state-owned company posted a net loss of Rs10.4 billion for the three months to Dec. 31, compared with a loss of Rs2.1 billion a year earlier, according to a filing to the Pakistan Stock Exchange.
The company's board recommended no dividend for the quarter. PSO reported a net profit of Rs7.7 billion for the first half of the current fiscal year, translating into earnings per share of Rs16.51 and gross sales of Rs1.9 trillion for the period. The group posted a net profit of Rs12.2 billion for the period, translating into earnings per share of RS26.01.
"Amidst soaring inflation, stagnant growth and geopolitical tension, the petroleum sector witnessed a downturn in product demand," PSO in a statement said. "PSO adeptly maneuvered through the obstacles and ensured uninterrupted nationwide fuel supply."
PSO said it bolstered its market share in white oil with a notable 1.9 percent increase, reaching 52.6 percent by the end of the period. "This growth was primarily attributed to increase in gasoline sales, where the company augmented its market share by 3 percent, reaching 46.1 percent for 1HFY24."
The company maintained the lions share in the diesel market with a share of 55.3 percent. "Continuing to dominate the black oil market, PSO sold 153 KMT during the period despite a 57.4 percent decline in sales of the segment on YoY basis owing to low furnace oil-based power generation," the statement said.
"In light of the challenges posed by escalating trade receivables, heightened borrowing expenses, and mounting finance costs, PSO’s Board is diligently engaged in constructive dialogue with the relevant authorities to mitigate these concerns."
The PSO said it is unwavering in its dedication to keep the wheels of the nation's economy in motion by actively undertaking digitization and automation, process optimization, bolstering operational reliability and capacity, enriching customer experience through value-added services, and generating shareholder value through its strategic long-term projects and plans.
The statement said the company further strengthened its infrastructure for enhanced capacity and reliability with the completion of 91 KMT of new storages at Faqirabad, Faisalabad, and Mehmoodkot, hence solidifying its position as the OMC with the largest storage capacity in the country, totaling 1,232 KMT. The company also successfully rehabilitated 24 KMT of storage facilities at Sihala and Zulfiqarabad, complemented by ongoing efforts to enhance capacity by 23 KMT across terminals including ZOT, Habibabad, Sihala, and Mehmoodkot.