PAKISTAN STATE OIL’S 42nd ANNUAL GENERAL MEETING HIGHLIGHTS CONSISTENT PROGRESS DESPITE CHALLENGES
Pakistan State Oil Company Limited, the country’s largest oil marketing company, held its 42nd Annual General Meeting (AGM) in Karachi where it shed on light on recent achievements and consistent growth trends in spite of some grave industry challenges. The meeting was chaired by Mr. Jahangir Ali Shah, Managing Director & CEO of Pakistan State Oil, along with senior officials including Mr. Yacoob Suttar, Deputy Managing Director - Finance, and Mr. Rashid Umar, the Company Secretary.
PSO closed the year with a cumulative market share of 50%. The growth in MOGAS at 10.1% and HSD at 2.4% was the highest recorded in the last three years. The Company – which already rules the aviation fuels sector with 79.2% market share and operations at all 10 airports in Pakistan – further increased its dominance in the segment by commissioning a state-of-the-art refueling facility at the New Islamabad International Airport (NIIAP).
PSO increased its gross profit despite a steep decline in Black Oil demand by 29.6%. Reduction in markup received from PIBs due to their maturity in July 2017 by Rs 4.3 billion, and reversal of deferred tax asset due to decline in future corporate tax rates by Rs 1.3 billion are the main contributors in reduction of profit after tax by Rs 2.7 billion in FY2018.
Speaking at the meeting, Mr. Jahangir Ali Shah, Acting Managing Director of Pakistan State Oil, said:
“PSO remains the nation’s favorite and most trusted fuel provider, a coveted status that we owe to our customers nationwide and use the best of our resources to serve them better. It is because of our customers’ trust that in spite of challenges, PSO reported a decent 6.7 % increase in Gross Profit and a Profit-After-Tax (PAT) of Rs 15.5 billion in FY2018. The overall financial performance of the Company remained strong with an increase of 20% in Net Sales Revenue over last year to Rs 1.1 Trillion as compared to 0.9 Trillion in FY2017.”
On the occasion, Mr. Shah also highlighted PSO’s achievements in the non-fuel retail (NFR) segment:
“In the non-fuel retail (NFR) segment too, PSO has moved to strengthen its operations by revamping and diversifying 13 of its Shop Stops and installing 50 new ATMs at its retail outlets nationwide in FY18 with the NFR revenue increasing by an impressive 69%. We plan on expanding our NFR operations further so our customers get the most out of their visit to PSO fuel stations and are provided with as many facilities as possible under one roof.”
Talking about PSO’s achievements with regard to improving and maintaining fuel quality, Mr. Shah stated:
“We have been a strong proponent and torchbearer of better quality fuels in Pakistan and in pursuit of the same PSO introduced higher-grade RON 97 HOBC gasoline in FY 2018. Furthermore, we have taken initiatives of upgrading the company’s fleet to ensure safe transportation of fuel”.
The past year saw some other achievements for PSO too. The Company’s excellence in financial reporting was again acknowledged as PSO secured 3rd position in Best Corporate Report Awards in the Oil and Gas Sector, by ICAP and ICMAP. The Company also secured joint second runner up position in SAFA best presented Annual Reports Awards held by the South Asian Federation of Accountants.
Appreciating PSO employees and management, Mr. Shah said the Company owed its success to their hard work. He also extended his gratitude to the Ministry of Energy (Petroleum Division), shareholders and customers of the company whose trust has helped PSO maintain its status as the country’s largest and most trusted fuel provider.