KARACHI: Pakistan State Oil (PSO) has declared a final cash dividend of Rs10/share for the year ended June 30, 2021, which is in addition to interim dividend of Rs5/share already paid to shareholders.
PSO announced a net profit of Rs29.5 billion translating into earnings per share (EPS) of Rs62.63 for FY21 compared with net loss of Rs14.7 billion and loss per share (LPS) of Rs23.47 in FY20.
The announcement came after PSO’s Board of Management (BoM) reviewed the performance of the company together with its subsidiary Pakistan Refinery Limited (PRL) for the financial year 2020-21, ended on June 30, 2021, during the meeting held on August 23, 2021 in Islamabad.
Based on the outstanding financial and operational performance of the company, the Board of Management has announced a final dividend of RS10/- per share (100 per cent) which is in addition to the interim cash dividend of Rs5/ share (50 per cent) for financial year 2020-21. The dividend for the financial year stands at Rs15/ share (150 per cent).
PRL, a subsidiary of PSO, also reported a profit after tax of RS0.94 billion during the year compared to a loss of RS7.6 billion in the previous year. On a consolidated basis, the group achieved a profit after tax of RS29.6 billion in FY21 compared to loss after tax of RS14.8 billion in FY20.
PSO Board noted that these results have demonstrated PSO’s agility and strength across its diveRse portfolio despite the challenging economic scenario and recurrent waves of the pandemic. PSO is leading the market by a large margin, delivering a phenomenal performance over and above the industry average.
The company exhibited an outstanding growth of 21.9 per cent in liquid fuels over last year with volumes reaching 9.2 million tons, attaining a market share of 46.3 per cent in FY21 compared to 44.3 per cent in FY20. PSO also achieved its highest ever volume of 7.6 million tons in the white oil segment despite the shrinking jet fuel and kerosene oil industry, with a market share of 45.2 per cent in FY21 vs. 44 per cent in FY20 i.e. a growth of 120 basis points (bps).
PSO set an all-time high record in Motor Gasoline (MoGas) achieving volumes of 3.5 million tons, an increase of 21.2 per cent from FY20, translating into market share of 41.3 per cent vs. 38.7 per cent last year – an increase of 260 bps.
The company made a strong closing in Hi-Cetane Diesel as well, achieving a volumetric growth of 21.1 per cent vs. industry growth of 17.5 per cent, translating into volumes of 3.7 million tons in FY21. The volumes contributed in regaining market share, bringing it to 47.2 per cent vs. 45.8 per cent in the preceding year i.e. an increase of 140 bps. PSO attained a volumetric growth of 53.2 per cent in black oil with volumes of 1.7 million tons and a market share of 51.7 per cent vs. 46 per cent in FY20.
An analyst said crackdown on smuggled fuels and closing of borders reduced availability of smuggled fuels, the market was captured by the oil marketing companies.
With the burden of circular debt still large, to improve its balance sheet further, PSO recovered Rs25.8 billion from the power sector along with late payment surcharge income. Reduction in finance cost by Rs3.2 billion. (24 per cent) further complemented the profitability of the company.