Shareholders laud PSO's outstanding performance

KARACHI: Pakistan State Oil showed exceptional financial performance during FY08, established new benchmarks of performance, and reinforced its market leadership in major products despite competitive challenges posed by existing players, liquidity crunch and supply constraints.

This was stated by Mr Kalim Siddiqui, Managing Director and Chief Executive Officer, in a presentation to the shareholders at the 32nd Annual General Meeting (AGM) on October 15, 2008. The Chairman, Board of Management, Sardar Yasin Malik, presided the meeting.

Mr Kalim Siddiqui informed shareholders that PSO increased its market share from 68.6% in FY 07 to 70.6% in FY 08. He also stated that during FY08, PSO sold over 13 million tons of POL products, showing 11% growth, substantially surpassing 8% industry growth. In addition to the record sales, the White Oil market share increased from 59.2% in FY 2007 to 61.8% in FY 2008 whereas Black Oil, from 80.1% in FY 2007 to 82.3% in FY 2008.
 
Mr. Siddiqui while briefly stating the next financial year’s challenges, highlighted that the most critical success factor for PSO and the energy sector in general for this financial year 2009 will be the timely payments of PSO debts by GOP and IPPs. This is critical to ensure timely, sustained and sufficient supply of fuel in the country.

Mr. Siddiqui while highlighting the company’s key achievements said that the company during FY 08 expanded 24 New Vision Retail outlets to 1633. Throughout the year, company maintained its strong focus on CNG business and added another 30 stations bringing the total to 240, which is the highest number of stations developed by an OMC in the country. The company also expanded the Fuel Cards infrastructure to around 1,450 outlets across 170 cities with over 6,000 corporate entities. He further highlighted that the company established refueling facilities at Sialkot airport in this financial year. In addition, the company maintained the high quality of its HSE standard and improved upon its safety record by achieving 5.5 Million Safe Operational Man hours during FY 08 without any Lost Work Day (LWD) injury.

Moreover, the Managing Director briefed the shareholders on the future business strategy stating that the management and employees shall continue to work towards establishing PSO as an energy solution company in full compliance with HSE standards. He added that the company shall reinforce technology-driven value-added initiatives and shall work towards increasing income from non-fuel and gaseous fuel businesses.

Sardar Yasin Malik, Chairman Board Of Management in his address to shareholders highlighted the company’s impressive performance in the FY 08 and said that the company’s turnover touched Rs 583 billion (US$ 9.4 billion). This is an increase of 42% over previous year making the company the largest corporate entity in Pakistan based on turnover. He appreciated the hard work of the employees of PSO across the company which made this impressive performance possible. On this occasion he also thanked the customers for their trust, and other stakeholders including the government, shareholders, contractors and dealers for their continued valuable support.

Chairman PSO further added that during FY 08, the company successfully fulfilled its corporate social responsibility, particularly in areas of education, health care and community development. The company supported several institutions through donations, prominent among which are Child Aid Association (Jinnah Hospital), Burns Center (Civil Hospital), Loralai District Headquarter Hospital, Frontier Foundation, Dowites Operation Theatre Society (Civil Hospital) and Marie Adelaide Leprosy Center in Gawadar. With the help of Heritage Foundation, PSO helped building of two schools in earthquake affected areas of Mansehra, whereas more schools are in the pipeline in collaboration with The Citizens Foundation.

The shareholders appreciated the candid financial disclosures in the Annual Report 2008 and congratulated PSO management over its outstanding performance and sustenance of market leadership in a challenging year. They appreciated the fact that in a business environment where other players lost market share, PSO consolidated its market participation.