PSO Reports profit of PKR 15.9 billion in FY24

PSO has demonstrated impressive financial performance and strategic prudence in a challenging market, reporting a profit of Rs 15.9 billion in fiscal year 2024, a press release issued on Tuesday said.

ISLAMABAD, (UrduPoint / Pakistan Point News – 27th Aug, 2024 ) PSO has demonstrated impressive financial performance and strategic prudence in a challenging market, reporting a profit of Rs 15.9 billion in fiscal year 2024, it said a press release issued Tuesday.

In a meeting held here on Tuesday, 2024, the Management Board reviewed the group’s performance for the financial year ending June 30, 2024.

Defying economic headwinds, including slow market growth, currency fluctuations and geopolitical uncertainty, PSO achieved a profit after tax of PKR 15.9 billion, reinforcing its status as a trusted energy partner of the country The Board of Management also announced a dividend of PKR 10/- per share, representing a 100% payout for the financial year 2023-24.

In addition, PSO’s subsidiary PRL delivered a robust performance with a profit after tax of PKR 4.1 billion and gross income of PKR 403.6 billion. On a consolidated basis, the group achieved a profit after tax of PKR 18.3 billion, translating into an Earnings Per Share (EPS) of PKR 39.

In the intensely competitive white oil market, the company expanded its market share to 51.6% share, surpassing its previous record and solidifying its position as the market leader.

PSO’s success is mainly driven by its exceptional performance of the engine gasoline, which saw a notable increase of 1.6% in market share, strengthening its hold to 45.8%.

Despite the adverse challenges, PSO proactively captured a market share of 53.2%. The company continued to dominate the aviation fuel industry, achieving a market share of 99.1%. Similarly, in fuel oil, PSO sold 285,000 tons against the industry volume of 1.2 million tons.

In the face of a complex landscape marked by inflation, import restrictions and declining car sales, the lubricants industry achieved a growth of 3%. However, PSO outperformed the market with sales growth of 9.7%, capturing 26.9% market share – an increase of 1.6% from the previous year.

The LPG industry grew by 5.7% this year, driven by domestic and commercial demand amid gas supply disruptions. PSO achieved a record 49,100 tons of sales, an increase of 22% from last year, due to strategic sourcing and an expanded distribution network.

PSO expanded its national footprint by adding 101 new outlets and more than 200 Shop Stop outlets, bringing the total to 3,580 outlets.

The company’s collaborative effort with Frontier Works Organization (FWO) on the White Oil Pipeline (WOP) project has made significant progress, with a Memorandum of Understanding (MOU) in place and the FEED study already completed.

As part of its advanced Fuel Management System (FMS) solution, PSO, in partnership with Pakistan Railways, is upgrading the Filling and Storage Railways in Karachi and Lahore, followed by six other locations across the country. PSO’s future-focused strategy leverages digital capabilities, driving growth and increasing operational efficiency. By integrating and automating two additional terminals at Mehmoodkot and Shikarpur, PSO has expanded its terminal network to five, while also completing the integration of 1,000 outlets with its central command and control system.

The company has strengthened its fuel storage capabilities with the successful addition of three new tanks at the Faqirabad, Mehmoodkot and Faisalabad terminals, resulting in a substantial increase in capacity of 91,000 metric tonnes. This expansion brought the total storage capacity to 1.24 million tonnes across Pakistan, supporting an operational availability of over 90% throughout the year.

In line with its aim to reduce plastic waste and promote green infrastructure, PSO has launched the ECO Street initiative, repurposing 5,000 kg of recycled plastic waste from its Lubricant Manufacturing Terminal (LMT) in Karachi into a road surface sustainable covering 49,428 square feet. The project redefines the future of infrastructure development, prioritizing eco-friendliness, sustainability and waste reduction.

PSO’s strategic diversification efforts have reached important milestones in its subsidiaries. CERISMA (Pvt.) Limited has obtained lead approval for an Electronic Money Institution (EMI) license, laying the foundation for a complete digital ecosystem. Simultaneously, PSO Renewable Energy (Pvt.) Limited has successfully developed solar projects at facilities and retail stations, accelerating PSO’s transition to a more sustainable energy mix.

Pakistan Refinery Limited (PRL) has effectively leveraged the brownfield refining policy, with the front-end engineering design (FEED) expected by the end of December 2024.