KARACHI : PSO has declared profit after tax of Rs10.3b for FY16 as compared to Rs6.9b reported in the corresponding period of last year. The earnings per share stood at Rs37.81 in comparison to last year’s Rs25.53. The increase is mainly due to growth in sales volume and margins of white oil products revised in November 1, 2014 and reduction in operating and finance cost by 10% and 35% respectively. However, the said increase was partially offset by decrease in black oil margins due to reduced price impact of black oil. The Board of Management (BoM) of PSO met at company’s head office PSO House to review the company’s performance for the fiscal year ended June 30, 2016 with Musadik Malik in the chair. During the period under review, PSO continued its market leadership position with an overall market share of 56.0% (FY15: 56.8%), despite stiff market conditions.

Market share of black oil products was 0.6% (FY15: 66.5%) and white oil products was 46.8% (FY15: 49.8%).

A growth of 3.4% was witnessed in overall sales volume of liquid fuels as compared to last fiscal year, which was primarily driven by growth in sales volume of white oil and black oil by 4.1% and 2.7% respectively. Major increase was witnessed in motor gasoline sales, which increased by 9.3% over the last fiscal year amid lower local petroleum prices and increased motor vehicle population. PSO’s black oil sales volume increased by 2.7%; whereas industry volumes declined by 3.1%, owing to increased availability of natural gas/R-LNG to power producers.

The outstanding receivables of Rs 233 billion (June 30, 2015: Rs 230 billion) from the power sector, PIA and SNGPL against supplies of furnace oil, aviation fuels and liquefied natural gas (LNG) continue to put pressure on already constrained liquidity position and will be a challenge as international oil price increases.

Based on the performance of the company, the BoM has announced final cash dividend of Rs7.5 per share, i.e. 75%.