KARACHI – The country’s fastest growing energy company, Pakistan State Oil (PSO), convened its 45th annual general meeting on October 26, 2021 at its head office in Karachi. In light of COVID-19 precautions, the meeting was held virtually to protect the health of employees and shareholders.
The Chairman of the Board of Directors (BOM), PSO – Zafar I. Usmani chaired the meeting with the Chairman and CEO and CEO of PSO – Syed Taha and other members of the BOM. Senior company officials and the finance team were also present at the meeting. As economies continued to be impacted by the pandemic on a global scale, PSO beat all odds and announced record gross revenue of PKR 1.4 trillion and highest after-tax profit of PKR 29.1 billion for fiscal year 2020-21 (FY21) after an after-tax loss of PKR 6.5 billion the previous year. The net profit translated into a healthy earnings per share of PKR 62.07 compared to 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% during FY21 versus 44.3% during FY20. The company also hit its highest ever volume of 7.6 million tonnes in the white petroleum segment despite the contraction of the jet fuel and kerosene industry, with a market share of 45.2% in FY21 vs. 44% in FY20 representing growth of 120 basis points (bps). A historic record was also set in motor gasoline reaching volumes of 3.5 million tonnes, an increase of 21.2% over FY20, resulting in a market share of 41, 3% compared to 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%, resulting in volumes of 3.7 million tonnes at course of FY21. Volumes helped regain market share, bringing it to 47.2% against 45.8% the previous year, an increase of 140 bps. PSO achieved volumetric growth of 53.2% in black oil with volumes of 1.7 million tonnes and a market share of 51.7% versus 46% in FY20.
With a focus on innovation and technology, PSO continued to enhance its digital capabilities, undertaking many pioneering initiatives such as launching 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 MOC to raise the country’s fuel standard from Euro 2 to Euro 5. PSO’s first electric vehicle charging facility – Electro has also been launched in Islamabad.
The company has 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, a record since the company was founded and also played a central role in the LNG sector, reaching another deal with Qatar Petroleum as part of a G2G deal. 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 about the receivables, the CEO and CEO of PSO informed shareholders that BOM and company management are working with the GOP on collections and that PKR 25.8 billion has been recovered from the industry. electricity as well as late payment surcharge income the previous year while reducing financial costs by Rs. 3.2 billion (24%).
On a question regarding corporate sustainability, BOM PSO President informed that sustainability is the cornerstone of PSO’s long-term business strategy as the company transforms into an integrated energy company focused on providing solutions to clients by harnessing technology, exploring low carbon energy alternatives, diversifying, starting new businesses and redesigning its internal architecture.
Responding to a question about the lubricants industry, the CEO and Managing Director of PSO informed that the company has prioritized high margin products in FY 21, adding significant revenue with volumetric growth of 11, 3% in lubricants. He added that a strong strategy is in place to further improve the lubricants business during FY22. On a question asked regarding the LPG business, he informed that the company is working with local producers to increase the allocation and stimulate 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 the resolutions submitted for the approval of the shareholders 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.