KARACHI (April 26 2003) : Pakistan State Oil Limited (PSO) declared the second interim dividend of 30 percent for the third quarter ended March 31, 2003, whereas its profit recorded an increase of 91 percent in nine months.
Tariq Kirmani, Managing Director, PSO, briefed the Board of Management (BoM) members on performance during the quarter ended March 31, 2003.
During the third quarter of FY-03, the PSO sales revenue increased to Rs 55.09 billion, up by 30 percent over prior year period, thus achieving an all-time record since the inception of the company. On year-to-date basis, the sales revenue stood at Rs 156.39 billion (an increase of 21.6 percent).
The Board of Management, Pakistan State Oil met at Company's head office in PSO House on Friday to review the third quarter FY-03 accounts of the country's largest and premier oil marketing entity. M Salim, Chairman, BoM, was in the chair.
For the period January-March, 2003, the company earned profit before tax of Rs 1.78 billion, which has remained consistent over corresponding period last year, while it posted the profit after tax of Rs 1.195 billion.
<br> The YTD increase was very vivid and pronounced as the company posted unprecedented profit before tax of Rs 4.68 billion, registering an impressive growth of 82 percent over the same period of last year.
The profit after tax also rose to Rs 3.26 billion (up by 90.5 percent).
Based on the phenomenal financial performance, the Board of Management announced a cash dividend of Rs 3 per share (30 percent) to its shareholders, Rs 1 (10 percent) more than that declared for the corresponding period last year. Combined with the earlier declared interim half-yearly dividend of 60 percent (Rs 6 per share), the total pay-out comes to 90 percent for the first nine months of the FY03.
This will result in cash pay-out of Rs 1.54 billion as dividend.
The Board observed that the January-March 2003 period witnessed continued global upheavals owing to the changed geo-political scenario, specifically in the Middle East, resulting in consumption drop.
The company had to maintain high inventory level due to regional political environment which also resulted in higher financial charges.
However, despite all these adverse factors and the overall industry decline of 7.2 percent, coupled with stiff competition from the existing as well as new entrants, PSO further consolidated its position – specifically in white oil products – and increased its market share of Mogas (42 percent), Diesel (60 percent), Jet A-1 (69 percent), and Kerosene (72 percent) on year-to-date basis.
The board also observed that not only remarkable increase in profits but also the consolidation process of the company in terms of market shares were primarily due to well-comprehended initiatives taken by the management leading the company in the right direction.
The Board appreciated the launch of some novel and futuristic products like Fleet and Corporate cards, introduction of self-lock seals for tank-lorries, along with inauguration of state-of-the-art Into-plane & Fuel Farm Facilities at new Allama Iqbal Terminal at Lahore.
The Board appreciated the commendable performance of the company and expressed that with the successful implementation of ambitious projects and strategic initiatives of the management, PSO would set newer landmarks, which can be emulated by all its contemporaries.