KARACHI (August 13 2003) : Pakistan State Oil Ltd (PSO) profit in the year ended June 30, 2003, recorded an increase of 26.4 percent and declared a final dividend of 70 percent.
The Board of Management (BoM), PSO, on Tuesday reviewed the financial performance of the country's largest oil marketing entity for the year ended June 30, 2003.
Pervaiz Kausar, BoM Chairman, presided over the meeting at company headquarters, PSO House.
The BoM noted that PSO sales revenue during the period under review soared to Rs 206.37 billion, up by 13.2 percent over previous year, primarily due to a spurt in international prices as a consequence of Iraq war.
The company earned highest-ever profit before tax of Rs 6.21 billion, up by 20.9 percent, while the profit after tax reached the staggering figure of Rs 4.03 billion, up by 26.4 percent.
Based on the phenomenal financial performance, the Board of Management announced a cash dividend of Rs 7 per share, or 70 percent, to its shareholders, resulting in total dividend of 160 percent for the whole year.
The total cash payout thus comes to an unprecedented amount of Rs 2.74 billion.
Period ending June 30, 2003 witnessed relative global political stability compared to the scenario prevailing during the last three years.
Despite international upheavals, the general economic conditions in Pakistan during FY03 depicted sound and encouraging trend.
During FY03, the overall POL consumption in Pakistan registered a negative growth of 4.5 percent, primarily owing to the reduced consumption of fuel oil, which declined by 15 percent over previous year.
The major determinant of economic growth, ie White Oils (Mogas, Diesel, Jet A-1 & Kerosene), recorded a growth of 2.6 percent against the prior year's decline of 1.6 percent.
Black Oils (Fuel Oil & Light Diesel Oil) declined by 14.6 percent owing to sharp decrease in fuel oil demand as a result of increased gas availability to power generation units coupled with improved hydel generation.
As compared to the While Oils, the Black Oils have no direct impact on economic activities.
PSO was the main beneficiary of volumetric growth as well as market share increase in all products except fuel oil due to its aggressive marketing coupled with the launch of innovative and novel products like fuel credit cards, hanging type dispensers recently installed at one of its outlets in Lahore, promotional campaigns, etc.
The company maintained increased focus on New Vision development and expanded its retail network to 713, with an average construction pace of 2 days per outlet.
Owing to sound and aggressive initiatives, the company gained 2 percent market share in Mogas bringing the total to 42 percent, while in HSD it increased its participation to over 60 percent (an increase The traditional inventory gains earned by OMCs vanished during FY03 owing to sharp price movements and profits are now primarily dependent on cost-effective imports / supplies, efficient operations and innovative and aggressive marketing coupled with highest levels of customer satisfaction.
The remarkable performance of the company was appreciated in terms of increased sales volume and market share of major products translating into unprecedented financial results.
It expressed confidence that the management's successful implementation of well-perceived strategic initiatives would help the company to set ever newer landmarks.