PSO reports Rs11.2bn profit despite circular debt challenges

KARACHI: Pakistan State Oil (PSO) posted a net profit of Rs11.2 billion in the first half of the current fiscal year, with gross sales totalling Rs1.74 trillion, the company reported on Thursday.

Despite this profitability, the circular debt crisis continues to weigh on PSO’s financials, with receivables reaching Rs467 billion as of December 31, 2024. Of this amount, Rs340 billion is owed by Sui Northern Gas Pipelines Limited (SNGPL). “The company is working closely with the government to find solutions and resolve this longstanding issue,” PSO stated in a press release.

The Board of Management reviewed the company’s performance for the half-year ended December 31, 2024. PSO maintained its market leadership, holding a 47.1 per cent share of the white oil segment, driven by 3,610 KMT in sales. It continued to dominate the diesel market, securing a 48.1 per cent share with sales of 1,660 KMT, while its MoGas portfolio held a 41.5 per cent market share with 1,601 KMT in sales.

The company also reinforced its leadership in the jet fuel segment, capturing a 99.1 per cent market share with total sales of 326.8 KMT. PSO achieved its highest-ever LPG sales in FY25, recording 22 per cent monthly growth in December 2024, reaching 5.2 KMT. Total LPG sales for 1HFY25 stood at 27.56 KMT, reflecting a 10 per cent increase from 1HFY24.

The company expanded its retail network, reaching 3,610 outlets nationwide. It also modernised 111 convenience stores and deployed Dispensing Unit Controllers (DUCs) at 50 additional retail sites, bringing total coverage to 1,200 locations to enhance data management and network monitoring.