PSO quarterly profit plunges 70pc on higher costs

KARACHI: Pakistan State Oil Company Limited (PSO) on Friday reported a 70 percent decline in quarterly earnings on Thursday, hurt by a surge in product costs.

The company posted a net profit of Rs3.744 billion for the quarter ended March 31, down from Rs12.539 billion in the same period last year. PSO skipped any dividend payout for the quarter, and earnings per share fell to Rs9.45 from Rs27.57 a year earlier.

Net sales rose 5.6 percent to Rs873.633 billion, but the cost of products sold jumped 9.2 percent to Rs850.277 billion, squeezing profit margins. For the nine months ended March 31, PSO reported a net profit of Rs18.512 billion, up from Rs12.603 billion in the same period last year. Earnings per share for the nine months were Rs35.46, compared with Rs25.05.

A company statement said the state-owned PSO has strengthened its market presence, achieving a 1.3 percent increase in white oil market share, reaching 52.4 percent by the end of March.

"This growth was predominantly driven by a 2.1 percent expansion in gasoline market share, soaring to 46.4 percent in 9MFY24. Moreover, PSO maintained a robust position in the diesel market, commanding a market share of 54.5 percent."

The company also retained its leading position in the black oil market, selling 247 KMT during the period, despite a 74.6 percent decline in sales year-on-year due to reduced furnace oil-based power generation. "Demonstrating remarkable resilience and prowess, PSO continued to lead the Jet fuel industry, securing an unprecedented market share of 99.4 percent.

Underscoring PSO's commitment to bolstering its infrastructure for enhanced operations, seven new storage tanks with a combined capacity of 91 KMT were constructed at Faisalabad, Faqirabad, and Mehmoodkot.

The company also carried out successful rehabilitation efforts on storage tanks totaling 26.6 KMT in capacity at Sihala, Pipri Marshalling Yard (PMY), Buffer Oil Terminal (BOT), Habibabad and Sahiwal, complemented by ongoing efforts to enhance capacity by an additional 21.4 KMT across Zulfiqarabad, Sihala, and Mehmoodkot terminals.

On the retail front, PSO expanded its presence by incorporating 37 new retail outlets, taking the total nationwide footprint to 3,555, further solidifying the company’s focus to providing accessible and reliable energy solutions to its customers.

Marking a significant milestone, CERISMA (Private) Limited, PSO's Fintech arm, was granted with the in-principle approval for Electronic Money Institution (EMI) by the State Bank of Pakistan (SBP)."This achievement is poised to revolutionize financial inclusion and empowerment, harnessing a digital framework to elevate nationwide financial accessibility to new heights."