Forbes 2000:PSO enters elite club of biggest publicly traded firms

Society Pakistan & World Affairs
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Forbes 2000 list: PSO enters Elite Club of Biggest Publicly Traded Firms

By Zafar Bhutta
Published: September 5, 2014

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Pakistan Credit Rating Agency (Pacra) upgraded PSO’s outlook from ‘stable’ to ‘positive’ with AA+ and A1+ long-term and short-term ratings respectively. PHOTO: FILE

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ISLAMABAD: **Pakistan’s oil market leader and dominant state-owned company – Pakistan State Oil (PSO) – has joined the prestigious club of world’s biggest publicly traded companies on the Forbes 2000 list in the wake of initiatives undertaken by the present management.

**Forbes **has screened the company in four categories – sales, profits, assets and market value with a minimum cut-off value – paving the way for it to qualify for inclusion in the list.

In financial year 2013-14, according to a PSO official, the company improved its refining base with an increase in equity stake in Pakistan Refinery Limited from 18% to 22.5%. It also completed groundwork for diversifying into liquefied natural gas (LNG) import business by developing the structure of the LNG project in consultation with all stakeholders.

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The company notched up all-time high sales revenue and crossed the **Rs 100-billion **mark in market capitalisation, becoming one of the few Rs 100 billion-plus large-cap companies on the Karachi Stock Exchange.

Pakistan Credit Rating Agency (Pacra) upgraded PSO’s outlook from ‘stable’ to ‘positive’ with AA+ and A1+ long-term and short-term ratings respectively.

The official said PSO, being one of the largest taxpayers in the country, made the highest-ever contribution of Rs 289 billion to national coffers in duties and taxes in the year 2013-14, higher by 10% than the previous year.

In comparison with the US Fortune 500 companies, PSO being the largest Pakistani company in terms of turnover would rank around 211.

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The official pointed out that the high performance benchmarks were achieved without any rise in margins during the year and despite an escalating financing cost because of higher receivables from power plants.

“The company optimised sales of its products to strike an effective balance between growth and profitability while realising substantial cost efficiency,” Managing Director Amjad Parvez Janjua commented.

A member of PSO board linked the company entering Forbes 2000 to efficiency in administration, distribution and marketing, restricted increase in expenses to 3% compared to average rise of 14% over the last three years and inflation rate of 8.5% in 2013-14.

“The board unanimously resolved on Wednesday to place on record its commendation for the management, particularly Amjad Parvez Janjua, the MD, for achieving outstanding yearly results,” he added.

During the period under review, the company met the challenge of timely and continuous supply of fuel oil for electricity production despite the damaging impact of circular debt as receivables grew sharply from the power sector.

It achieved this by efficiently managing the supply chain, inventory and finances.

**It introduced various system-based controls and automated a number of business functions during the year.
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An online order management system was implemented, enabling PSO’s customers to login to the e-portals and place orders for products, make payments and view the accounts status. It helped reduce operational cost, enhance controls, eliminate potential irregularities due to human intervention and improve payment collection by establishing online connectivity with the banking network across the country.

During the year, a human resource development initiative for building capacity and developing leadership was also launched and an internship programme for students of** universities across Balochistan** was started.

Being aware of its corporate social responsibility and to support relief activities, PSO contributed** Rs40 million** to the Prime Minister’s Relief Fund for Internally Displaced Persons from North Waziristan in addition to donating part of its employees’ salaries for the IDPs.
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Published in The Express Tribune, September 5[SUP]th[/SUP], 2014.*

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Re: Forbes 2000:PSO enters elite club of biggest publicly traded firms

PSO announces record breaking profit

SEPTEMBER 3, 2014 BY STAFF REPORT

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The Board of Management (BoM) of Pakistan State Oil Company Limited (PSOCL) convened Wednesday at the PSO headquarters to review the company’s performance for the financial year that ended **June 30, 2014.
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In the period under review, PSO recorded all-time high sales revenue, profit after tax and earnings per share.
Sales revenue stood at Rs 1.4 trillion compared to Rs 1.29 trillion during the same period last year (SPLY), registering a growth of 9%.

After tax earnings rose by 73% to Rs 21.8 billion as compared to Rs 12.6 billion during SPLY. Earnings per share increased to Rs 80.31 from Rs 46.52 during SPLY.

PSO maintained its market leadership position during the year under review with 73% share in black oil market and 53% in white oil market, while registering a growth of 5% in sales over liquid fuels last year.

The company realised substantial cost efficiencies, whereby the distribution and marketing expenses increased merely by **3% as compared to 14% average increase in expenses **over the last three years and against an inflation of 8.5% during FY 2014.

Recovery of interest from power sector consumers and interest on Pakistan Investment Bonds also contributed towards increase in the bottom line, which was nevertheless, mitigated by increase in finance cost by 26% due to power sector receivables vis-a-vis circular debt and net exchange loss of Rs 1 billion due to devaluation of PKR.

The BoM expressed concern over increasing receivables from the power sector and advised the management to pursue the recovery thereof through continued follow-up with the customers and the concerned government offices.

Based on this performance, the PSO BoM announced a final cash dividend of Rs 4 per share in addition to the earlier interim cash dividends of Rs 4 per share (equivalent to 80%) and issuance of bonus stock at the rate of 10%.

Combined with the earlier interim cash dividends the total cash dividend for the year stands at Rs 8 per share.

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Re: Forbes 2000:PSO enters elite club of biggest publicly traded firms

PSO profit soars 73pc - Newspaper - DAWN.COM

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Re: Forbes 2000:PSO enters elite club of biggest publicly traded firms

PSO should do well. There are no retired brigadiers and only a few jiyalas in the management team.

Like PSO, PIA has had almost a monopoly in its sector over the years. Unfortunately, it has been used as a parking space for retired fauji officers and for repaying 'qurbani' of jiyalas.

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Not bad for the 6th largest nation in the world. There is one, partially state owned company in the top 2000 companies of the world.

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Re: Forbes 2000:PSO enters elite club of biggest publicly traded firms

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Forbes enlists PSO in world’s top 2000 firms**

2 DAYS AGO BY STAFF REPORT

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The state-run oil giant Pakistan State Oil (PSO) has joined the prestigious club of world’s biggest publicly-traded companies on the Forbes 2000 list.

The honour was bestowed upon Pakistan’s oil market leader on the basis of its extraordinary business performance, said the PSO officials.

Forbes screens companies in four metric: sales, profits, assets and market value with a minimum cut off value in order for a company to qualify. In terms of revenue in comparison with that of US Fortune 500 companies, the PSO, as Pakistan’s largest company in terms of turnover, would rank around 211th on the Forbes list.

In FY14, the PSO’s sales revenue crossed the landmark of Rs 1 trillion and achieved turnover worth Rs 1.4 trillion. This showed a growth of nine per cent compared to FY13.

The company’s profit after tax increased to Rs 21.8 billion representing an increase of 73 per cent compared to the previous year. At the close of FY14, the PSO achieved a market share of 61.9 per cent comprising 73 per cent share in Black oil and 53 per cent share in White oil.

Hence, the PSO retained leadership position in the oil market establishing itself as a brand of choice for customers.

The company crossed Rs 100 billion mark of market capitalization to be one of the few Rs 100 billion plus ‘large cap’ companies of the Karachi Stock Exchange, and its outlook was upgraded by PACRA from ‘stable’ to ‘positive’ with AA+ and A1+ long-term and short-term credit ratings.

During the year under review, the launch of SMS Service for smart fuel card holders, value-added bundle of balance transfer and conversion of strip based fuel cards into smart chip based fuel cards by the PSO showed continuous persuasion of enhancement in customer services through improvement, innovation and technological advancement.

The objectives of market development, market penetration and strategic partnership initiatives were ensured through increase in number of retail outlets and expansion of HBL ATM network.

As one of the country’s largest taxpayers, the PSO made its highest ever contribution of Rs 289 billion to the government exchequer in the form of duties and taxes during FY14 which was 10 per cent higher than that made during the previous year.

Besides playing its role in the economic prosperity of the country, the PSO as a responsible corporate citizen is also fulfilling all duties and responsibilities towards internal and external stakeholders by supporting the deprived segments of society.

The state-run oil-giant proudly participated in relief activities for the earthquake affected populace in Balochistan as part of corporate social responsibility efforts.

The company also has donated approximately Rs 40 million to the prime minister’s relief fund for the internally displaced persons (IDPs) from the militancy-hit North Waziristan in addition to donating a portion of its employees’ salaries for this noble cause.

Forbes enlists PSO in world