After-tax earnings of Pakistan State Oil (PSO) rose 150% to Rs15.8 billion in the first half of current financial year compared to Rs6.31 billion in the corresponding period of previous year.
This record six-month profit eclipsed earnings of Rs12.6 billion in the entire financial year 2012-13, said PSO in a statement on Friday.
PSO’s board of management, which met at the company’s headquarters to review its performance, declared a dividend of Rs4 per share and 10% bonus shares.
Net sales rose 14% to Rs612 billion in July-December 2013-14 against Rs535 billion in the same period last year. “We believe higher sales of furnace oil and motor spirit are the key drivers of topline growth,” said Topline Securities in a report.
The main factor behind the earnings was huge other income, which grew to Rs14.7 billion compared to Rs3.3 billion in the first half of 2012-13.
According to the statement, PSO led the market with a share of 63% while its share in black oil and white oil stood at 75% and 53% respectively during the six-month period.
Sales of furnace oil and motor gasoline grew 13% and 15% respectively. A decline of 6.4% in sales of high-speed diesel in the first quarter was followed by a growth of 3.5% in the second quarter, resulting in 1% decline over the six-month period.
PSO said it achieved substantial cost efficiencies as distribution and marketing expenses rose only 4%.
The positive impact of sales and cost efficiency was partially offset by depreciation of the rupee against the dollar by about 6.5%. This resulted in an exchange loss of Rs2.2 billion compared to Rs0.96 billion in the same period last year.
Published in The Express Tribune, March 1st, 2014.