The announcement was made on October 29, 2005, as acknowledgement of the impressive financial results, on the conclusion of the first quarter of FY06. Pervaiz Kausar, Chairman, BoM, presided over the meeting at company headquarters, PSO House, Karachi.
The company''''s sales revenue during July-September 2005 was Rs 71 billion, showing a growth of 19 percent over the same period of last year. This translated into before tax earning of Rs 4 billion, and after-tax profit of Rs 2.5 billion, higher by 112 percent and 109 percent, respectively, as compared to corresponding period of last year. Based on a remarkable performance, the Board of Management announced a cash dividend of Rs 6 per share to its shareholders.
The Board observed that the period under review was marked by uncertainties and high demand that led to substantial increase in international crude oil prices followed by corresponding increase in local POL prices. As a consequence, Mogas and HSD industry consumption registered a decline of 5 percent and 7 percent, respectively.
An overall decline by around 7percent over prior year period was witnessed in white oil consumption. Similarly, black oil also recorded a decline of 24 percent, mainly due to reduced fuel oil consumption in the wake of improved hydel and generation with gas.
Despite these setbacks, coupled with the ever-intensifying competition, with new entrants gaining market share and further segmenting the market, PSO maintained its overall market leadership in key products. This was primarily due to numerous sales promotion activities, commissioning of JP-8 facilities at Keamari Terminal ''''B'''', and further expansion of ''''New Vision'''' retail outlets network.
On July 1, 2005, the company took a quantum technological leap with introduction of state-of-the-art ERP solution through deployment of SAP. Through this major strategic corporate initiative, the company once again benchmarked its quest for ever-greater customer care through technology-driven innovative systems, products and services.
The Board observed that PSO, being one of the largest corporate companies in the country, responded promptly as partner in the rescue and relief operations for the victims of the worst natural disaster that struck the nation soon after the end of the review period. In this connection, the company donated Rs 20 million to President''''s Relief Fund; is providing, free of cost, jet fuel to Edhi Air Ambulance for mercy flights; refuelling international relief flights at reduced prices.
The employees contributed two days'''' salary. Two convoys of trucks/containers of relief goods were dispatched to Abbottabad and Dirkot. Ten truckloads of 10,000 litres each of kerosene oil are being dispatched to affected areas for domestic consumption. The company is further assessing the situation and has allocated Rs 100 million for relief and rehabilitation.
PSO continues uninterrupted supply of fuel to the affected areas to meet the requirement.
The Board observed that PSO would be maintaining an optimal balance between earnings and market share and is well placed to continue its leadership in the downstream sector in the face of the rapidly changing business dynamics. With successful implementation of strategic initiatives, measures in cost efficiencies and enhanced usage of technology, the company would replicate its performance, year-after-year.