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KARACHI: Despite severe financial challenges posed by the ever increasing circular debt, PSO has achieved record-breaking results as its profit after tax reached Rs 7.13 billion in first half of 2010-11 as compared to Rs 5.08 billion in the same corresponding period last year, showing a 40 percent growth. The half-yearly profit is the highest in the entitys 34-year history.
The companys sales revenue for the given period touched Rs 427 billion as compared to Rs 414 billion during the corresponding period last year, the financial results announced on Wednesday said.
In recognition of the remarkable performance of the company and its management under the guidance of MD, PSO, Irfan Qureshi, the Board of Management (BoM) has declared a first interim cash dividend of Rs 5 per share for the year ending June 30, 2011.
The countrys overall fuel consumption during the period under review has declined by 2.7 percent as compared to the corresponding period last year. This was primarily on account of the massive devastation as well as the temporary closure of a few power generation companies caused by the recent floods.
In Black Oil, the industry declined by 3.2 percent, whereas the White Oil industry declined by 2.2 percent. However, PSO maintained its position as the market leader with the share in the Black Oil and White Oil segments, standing at 79.2 percent and 55.0 percent, respectively, thereby contributing to an overall market share of 66.3 percent.
The board members also raised concerns on the ever-rising circular debt, which as at December 31, 2010 stood at Rs 127 billion. These receivables have now swelled to a massive Rs 150.84 billion, which severely compromises the companys liquidity and renders it cash-strapped. Moreover, the financial costs associated with servicing this debt coupled with consistent non-payment from the power sector continue to hurt the overall profitability of the company.
PSOs management is working closely with the government and Independent Power Producers (IPPs) for recovery of its receivables and chalking out a long-term resolution plan for this continuing crisis.
Befitting its status as the largest public sector organisation in the country, PSO donated approximately Rs 50 million to various flood relief activities. This relief effort comprised of the distribution of food rations and necessities as well as the establishment of tent cities for the flood displaced citizens. At the same time, PSO meticulously ensured uninterrupted fuel supply to meet the energy needs of the country by continuing operations of more than 90 percent of its retail network whilst simultaneously working towards reviving its affected infrastructure.
In the period under review, PSO was also recognised for its community building initiatives in the form of the Corporate Philanthropy Award, by the Pakistan Center of Philanthropy (PCP) as being one of the top 5 public listed companies that donate to social causes. PSO was also recognised for its excellent performance at the 27th Corporate Excellence Awards organised by the Marketing Association of Pakistan (MAP) where the company was the recipient of the MAP Corporate Excellence Certificate in the Oil and Gas sector.
Daily Times - Leading News Resource of Pakistan
The companys sales revenue for the given period touched Rs 427 billion as compared to Rs 414 billion during the corresponding period last year, the financial results announced on Wednesday said.
In recognition of the remarkable performance of the company and its management under the guidance of MD, PSO, Irfan Qureshi, the Board of Management (BoM) has declared a first interim cash dividend of Rs 5 per share for the year ending June 30, 2011.
The countrys overall fuel consumption during the period under review has declined by 2.7 percent as compared to the corresponding period last year. This was primarily on account of the massive devastation as well as the temporary closure of a few power generation companies caused by the recent floods.
In Black Oil, the industry declined by 3.2 percent, whereas the White Oil industry declined by 2.2 percent. However, PSO maintained its position as the market leader with the share in the Black Oil and White Oil segments, standing at 79.2 percent and 55.0 percent, respectively, thereby contributing to an overall market share of 66.3 percent.
The board members also raised concerns on the ever-rising circular debt, which as at December 31, 2010 stood at Rs 127 billion. These receivables have now swelled to a massive Rs 150.84 billion, which severely compromises the companys liquidity and renders it cash-strapped. Moreover, the financial costs associated with servicing this debt coupled with consistent non-payment from the power sector continue to hurt the overall profitability of the company.
PSOs management is working closely with the government and Independent Power Producers (IPPs) for recovery of its receivables and chalking out a long-term resolution plan for this continuing crisis.
Befitting its status as the largest public sector organisation in the country, PSO donated approximately Rs 50 million to various flood relief activities. This relief effort comprised of the distribution of food rations and necessities as well as the establishment of tent cities for the flood displaced citizens. At the same time, PSO meticulously ensured uninterrupted fuel supply to meet the energy needs of the country by continuing operations of more than 90 percent of its retail network whilst simultaneously working towards reviving its affected infrastructure.
In the period under review, PSO was also recognised for its community building initiatives in the form of the Corporate Philanthropy Award, by the Pakistan Center of Philanthropy (PCP) as being one of the top 5 public listed companies that donate to social causes. PSO was also recognised for its excellent performance at the 27th Corporate Excellence Awards organised by the Marketing Association of Pakistan (MAP) where the company was the recipient of the MAP Corporate Excellence Certificate in the Oil and Gas sector.
Daily Times - Leading News Resource of Pakistan
