Karachi: The Board of Management (BoM) of Pakistan State Oil Company Limited (PSOCL) convened on Tuesday at the Pakistan State Oil (PSO) headquarters, to review the Company’s performance for the nine months period ended March 31, 2014
In the period under review, PSO’s sales revenue crossed the trillion turnover mark and stood at Rs 1.02 trillion as compared to Rs 930 billion during Same Period Last Year (SPLY), representing a growth of 10%.
The Company’s after tax earnings increased to Rs 19.4 billion as compared to Rs 9.4 billion during SPLY. These all time high nine monthly after tax earnings surpassed the after tax earnings of Rs 12.6 billion during the entire financial year 2013 by 54%. While maintaining the overall market leadership position with 73% share in black oil market and 53% in white oil market, the Company registered a growth of 4% in sales of liquid fuels as compared to SPLY.
Devaluation of Pak Rupee against US dollar by 6.5% in the first half of financial year 2014 was followed by an appreciation of 7% in the third quarter, resulting in a net exchange loss of Rs 1.2 billion in the nine months under review. Recovery of interest from power sector producers and interest earned on PIBs contributed positively to the bottom line although it caused an increase in finance cost by 23%.
Due to liquidity issues faced by the Company caused by outstanding receivables, mainly from power sector customers, the Board has decided to defer the dividends at this stage.
The PSO Board appreciated the contributions of the management team and workforce towards the impressive performance of the Company.
In view of the increasing receivables from the power sector customers, the BoM directed the management to continue working closely with the concerned government departments and customers for timely realization of due payments.
The management thanked the members of the Board for their direction and support and assured continued efforts to maximize value for the stakeholders.