PSO Announces Record Gross Revenue, Highest PAT Ever at AGM – Latest News – The Nation

KARACHI – The country’s fastest growing energy company, Pakistan State Oil (PSO) has convened its 45th Annual General Meeting on October 26, 2021 at its headquarters in Karachi. Given the precautions related to COVID-19, the meeting was held virtually to protect the health of employees and shareholders.
Chairman, Board of Directors (BOM), PSO – Zafar I. Usmani chaired the meeting with Managing Director and Managing Director PSO – Syed Taha and other BOM members. Senior executives from the company and the finance team were also present at the meeting. As economies continued to feel the impact of the pandemic globally, PSO beat all odds and announced record gross revenue of PKR 1.4 trillion and highest after-tax profit record loss of PKR 29.1 billion for the financial year 2020-21 (FY21) after an after-tax loss of PKR 6.5 billion in the previous year. Net income was a strong earnings per share of PKR 62.07 versus a loss per share of PKR 13.77 in FY20. PSO continued to dominate the energy landscape, posting an exceptional growth of 21.9% in liquid fuels compared to last year with volumes reaching 9.2 million tonnes, reaching a market share of 46.3% in FY21 versus 44.3% in FY20. The company also achieved its highest ever volume of 7.6 million tonnes in the white oil segment despite the contraction in the jet fuel and kerosene industry, with a market share of 45.2% in FY21 compared to 44% in FY20, representing a growth of 120 basis points (bps). An all-time high was also set for motor gasoline with volumes of 3.5 million tonnes, an increase of 21.2% over FY20, translating into a market share of 41.3 % versus 38.7% last year, an increase of 260 basis points. PSO also achieved a strong close in Hi-Cetane Diesel, achieving volumetric growth of 21.1% versus industry growth of 17.5%, translating to volumes of 3.7 million tonnes during FY21. Volumes contributed to regaining market share, bringing it to 47.2% against 45.8% the previous year, an increase of 140 bps. PSO achieved 53.2% volumetric growth in black oil with volumes of 1.7 million tonnes and market share of 51.7% versus 46% in FY20.
With a focus on innovation and technology, PSO has continued to enhance its digital capabilities, undertaking many pioneering initiatives such as the launch of Pakistan’s first digitally integrated oil storage and shipping terminal in Karachi and becoming the first public sector entity to launch e-procurement through SAP. Ariba. In line with the GOP’s clean and green initiative, PSO was the first OMC to upgrade the country’s fuel standard from Euro 2 to Euro 5. PSO’s first charging facility for EV – Electro was also launched at Islamabad.
The company accelerated infrastructure projects to gain operational efficiency by adding 174,000 tonnes of new and rehabilitated storage. PSO imported 4.9 million tonnes of white petroleum products, an all-time high since the company was founded, and also played a central role in the LNG sector, concluding another agreement with Qatar Petroleum as part of the G2G arrangement to supply an additional 3 million tonnes of LNG for a period of 10 years.
As a responsible corporate citizen, PSO, through its PSO CSR Trust, has provided support of PKR 102 million in the areas of health, education, community development, environment and nationwide disaster relief.
Responding to a question on receivables, the CEO and MD PSO informed shareholders that BOM and company management are working with the GOP on recoveries and that PKR 25.8 billion has been recovered from the industry. electricity as well as late payment mark-up revenue in the previous year while reducing finance costs by Rs. 3.2 billion (24%).
On a question regarding corporate sustainability, the President of BOM PSO informed that sustainability is the cornerstone of PSO’s long-term corporate strategy as the company transforms into an integrated energy company focused on providing solutions to customers by leveraging technology, exploring low-carbon energy alternatives, diversifying, starting new businesses and rethinking its internal architecture.
Responding to a question about the lubricants business, CEO and Managing Director PSO informed that the company had prioritized high margin products in FY21, adding significant revenue with volumetric growth of 11.3 % in lubricants. He added that a solid strategy is in place to further improve the lubricants business in FY22. On a question regarding the LPG business, he informed that the company is working with local producers to increase allocation and drive volumetric growth.
Based on the outstanding financial and operational performance, the company declared a final cash dividend of PKR 10/- per share (100%) which is in addition to the interim cash dividend of PKR 5/- per share ( 50%) already paid for fiscal year 2020-21. The dividend for the year amounts to PKR 15/- per share (150%).
All resolutions submitted for shareholder approval were adopted. The meeting ended with a vote of thanks to employees, stakeholders, business partners, board members and the Government of Pakistan, especially the Ministry of Energy (Petroleum Division), for their support and advice.