Daily Times

Pakistan State Oil (PSO) has announced July to September 2018-19 (Q1FY19) financial results. Report translated a Profit after Tax (PAT) of Rs 4.2 billion. Board of Management (BoM) meeting at Karachi convened to review Company’s performance for quarter ended September 30, 2018.

Despite numerous challenges, PSO’s gross profit grew by 19 percent while it maintained its leadership position in liquid fuels market with an overall share of 40 percent during period under review. During Q1FY19, PSO imported 48 percent of total industry imports and uplifted 34 percent of total country refinery production in country.

The Company has shown a healthy bottom line in spite of a mix of external and internal factors that have negatively affected local industry growth. These factors include influx of smuggled products, increasing international price trends, adulteration, heavy discounts offered by new entrants, and exploitation of the IFEM mechanism.

The BoM also discussed key challenges company has been facing in recent months including the reduction in other income consequential to lower interest income, higher exchange loss on account of rupee devaluation and increase in finance cost due to higher markup rates and borrowing levels. These have resulted in a decline in Company’s PAT.

As of September 30, 2018, PSO’s total outstanding receivables (inclusive of LPS) from power sector, Pakistan International Airline and Sui Northern Gas pipelines Limited stood at Rs 310 billion versus Rs 316 billion as of June 30, 2018.

This is in addition of Rs 21 billion recoverable from Ministry of Finance on account of exchange rate differential on foreign currency loans and price differential claims.

The management has been continuously pursuing ministries of Energy and Finance for re-payment of PSO’s receivables.

The management expressed gratitude to all stakeholders including government, especially Ministry of Energy and shareholders of Company for their continued support.

Published in Daily Times, October 30^th 2018.