PSO leads the market with resilience and growth – posts a profit of 13.4 billion in 9MFY24

Pakistan State Oil (PSO), the leading energy company, maintained its industry dominance and demonstrated steady performance in 9MFY24.The company announced a net profit of PKR 13.4 billion, translating into earnings per share of PKR 28.5 and gross sales of PKR 2.8 trillion for the period.

The company’s Board of Management (BoM) reviewed the group’s performance for the nine months ended March 31, 2024 in the meeting held on April 26, 2024. The group posted a net profit of PKR 16.6 billion for the period, translating into earnings per share of PKR 35.5.

Amidst significant challenges in the petroleum sector, PSO strengthened its market presence, achieving a noteworthy 1.3% increase in white oil market share, reaching 52.4% by the end of the period in review. This growth was predominantly driven by a 2.1% expansion in gasoline market share, soaring to 46.4% in 9MFY24.  Moreover, PSO maintained a robust position in the diesel market, commanding a market share of 54.5%.

The company also retained its leading position in the black oil market, selling 247 KMT during the period, despite a 74.6% decline in sales YoY due to reduced furnace oil-based power generation. Demonstrating remarkable resilience and prowess, PSO continued to lead the Jet fuel industry, securing an unprecedented market share of 99.4%.

Underscoring PSO’s commitment to bolstering its infrastructure for enhanced operations, 7 new storage tanks with a combined capacity of 91 KMT were constructed at Faisalabad, Faqirabad, and Mehmoodkot. The company also carried out successful rehabilitation efforts on storage tanks totaling 26.6 KMT in capacity at Sihala, Pipri Marshalling Yard (PMY), Buffer Oil Terminal (BOT), Habibabad and Sahiwal, complemented by ongoing efforts to enhance capacity by an additional 21.4 KMT across Zulfiqarabad, Sihala, and Mehmoodkot terminals.

On the retail front, PSO expanded its presence by incorporating 37 new retail outlets, taking the total nationwide footprint to 3,555, further solidifying the company’s focus to providing accessible and reliable energy solutions to its customers.

Marking a significant milestone, CERISMA (Private) Limited, PSO’s Fintech arm, was granted with the in-principle approval for Electronic Money Institution (EMI) by the State Bank of Pakistan (SBP). This achievement is poised to revolutionize financial inclusion and empowerment, harnessing a digital framework to elevate nationwide financial accessibility to new heights.

As part of the company’s state-of-the-art Fuel Management System solution, the national flag bearers – PSO and Pakistan Railways (PR) inaugurated the recently upgraded Railways Filling and Storage Facilities at Karachi and Lahore, representing a significant step in bringing in operational efficiencies while further strengthening over 4 decades of relationship between the two entities.

In a strategic bid to fortify Pakistan’s fuel supply chain, PSO joined forces with Frontier Oil Company 1 (FWO) and             Inter State Gas Systems (Pvt) Limited (ISGS) to launch a transformative White Oil Pipeline (WOP) initiative in northern Pakistan. The visionary project aims to expand the pipeline network from Machike (Lahore) to Tarujabba (Peshawar), promising enhanced efficiency, cost reduction, heightened safety, and minimized road congestion, while contributing to a significant reduction in the nation’s carbon footprint.

As part of its ongoing efforts to reduce plastic waste and promote eco-friendly infrastructure, the company launched the ECO street initiative which repurposed 5,000 kg of recycled plastic waste from its Lubricant Manufacturing Terminal (LMT) in Karachi. The effort transformed approximately 49,428 square feet of traditional road into a symbol of green living, not only reducing waste but also enhancing the durability of the road, setting a new standard for environmentally responsible construction.

Rooted in its core values of caring and giving, PSO, through its CSR trust, continued to make significant contributions to the community. The trust spearheaded a nationwide ration distribution drive, investing a monumental Rs.100 million to uplift underprivileged communities across Pakistan, symbolizing hope, unity, and collective generosity. In addition, the PSO CSR Trust allocated ongoing support of PKR 201 million to various charitable organizations, prioritizing initiatives in healthcare, education, youth development, social enterprise advancement, and community building.

Amidst challenges such as escalating trade receivables and rising borrowing expenses, PSO’s Board is actively engaged in productive discussions with relevant authorities to address these issues and find effective solutions.

Looking ahead, PSO reiterates its strategic focus on embracing innovative technologies, expanding its product lines, and exploring renewable energy ventures. The company remains devoted to driving Pakistan’s energy sector forward, with an eye on both the nation’s needs and the global trend towards greener energy solutions.

The management expresses sincere gratitude to all stakeholders including the Board of Management, the Government of Pakistan, Ministry of Energy (Petroleum Division), shareholders and employees for their continued support and trust.