Pakistan State Oil Company Limited (PSO) has made headlines with a remarkable financial performance in the first quarter of 2023. The company reported a staggering 1,727% increase in quarterly profits, with a profit after tax of Rs. 23.99 billion, leading to earnings per share of Rs. 51.10. This surge in earnings was driven by increased sales, especially in motor spirit and hi-speed diesel, partly due to last year’s low base effect and higher retail prices for petroleum products.
In the face of challenging factors like inflation, geopolitical tensions, and rising oil prices globally, PSO managed to maintain its commitment to providing fuel nationwide. Notably, the company expanded its market share in the white oil segment by 4.3%, closing the quarter with a significant 53.1% market share. In diesel and gasoline, market shares also grew by 4.5% and 4.2%, reaching 55.0% and 47.9%, respectively.
However, the black oil segment faced a 63% decline in sales due to decreased furnace oil-based power generation. Still, PSO maintained its leadership in this segment with a market share of 29.6%.
PSO also invested in infrastructure development, rehabilitating existing storage and constructing new storage facilities, showcasing a forward-looking approach. The company leveraged digital capabilities to automate terminals, enhancing operational efficiency.
Despite these impressive achievements, the company is actively addressing concerns about mounting trade receivables, high borrowing costs, and rising finance costs. PSO’s proactive stance and substantial growth in earnings underscore its resilience and adaptability in a challenging economic environment.