PSO
The oil and gas sector has a considerable impact on our economy. Because it is the sector that
attracts foreign direct investment and raises tax income for the government. But at the same time
it affects our balance of payments due to import of crude oil and petroleum products. During
2008-2009 oil and gas sector fetches $612.1million which is increased from last year $509.4
million.
The sharp rise of investment in this sector was mainly due to energy crisis faced by country from
last few years. Also in new petroleum policy new incentives has been introduced.
There are 8 companies in oil and gas sector of Pakistan. The names are Attock Petroleum, Shell
Pakistan, Caltex, Haroon Oils, Halliburton, Sui Northern Gas Company, Sui Northern Gas
pipelines, Pakistan State Oil.
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Ratio-Analysis
About Us PSO is the market leader in Pakistan’s energy sector. The company has
the largest network of retail outlets to serve the automotive sector and is the major fuel supplier
to aviation, railways, power projects, armed forces and agriculture sector. PSO also provides Jet
Fuel to Refueling Facilities at 9 airports in Pakistan and ship fuel at 3 ports. The company takes
pride in continuing the tradition of excellence and is fully committed to meet the energy needs of
today and rising challenges of tomorrow.
Pakistan State Oil, the largest oil marketing company in the country, is currently engaged in
storage, distribution and marketing of various POL products. The company’s current market
share of 82.3% in the black oil market and 59.4% share in the white oil market, alone speak
volumes about its success.
PSO Major Highlights - FY 2009
Sold 7 million tons of furnace oil – the highest in the last 8 years
Efficiently managed supply to the power sector despite the liquidity crisis
Imported approximately 90% of the country’s POL imports - 3.4 million tons of HSD and 5 million
tons of FO
Helped in the revenue collection of more than Rs. 161 billion to the GOP (Sales Tax: 97 billion, taxes:
1.4 billion,PDL: 61 billion)
Extended support to various charitable organizations in the health & education sector including
contribution for the rehabilitation of IDPs due to the Swat operation
History:
History The creation of Pakistan State Oil (PSO) can be traced back to the year 1974, when
on January 1st; the government took over and merged Pakistan National Oil (PNO) and Dawood
Petroleum Limited (DPL) as Premiere Oil Company Limited (POCL).
Soon after that, on 3rd June 1974, Petroleum Storage Development Corporation (PSDC) came
into existence. PSDC was then renamed as State Oil Company Limited (SOCL) on August 23rd
1976. Following that, the ESSO undertakings were purchased on 15th September 1976 and
control was vested in SOCL. The end of that year (30th December 1976) saw the merger of the
Premier Oil Company Limited and State Oil Company Limited, giving way to Pakistan state Oil
(PSO).
After PSO’s inception, the corporate culture underwent a comprehensive renewal program which
was fully implemented in 2004. This program over the years included the revamping of the
organizational architecture, rationalization of staff, employee empowerment and transparency in
decision making through cross functional teams. This new corporate renewal program has
divided the company’s major operations into independent activities supported by legal, financial,
informative and other services. Inorder to reinforce and monitor this structural change, related
check and balances have been established by incorporating monitoring and control systems.
Human Resource Development became one of the main priorities on the company’s agenda
under this corporate reform.
It is due to this effective implementation of corporate reform and consistent application of the
best industrial practices and business development strategies, that PSO has been able to maintain
its market leadership in a highly competitive business environment.
January 1, 1974
The federal government took over the management of PNO (Pakistan National Oil) and
DPL (Dawood Petroleum Limited), renamed into POCL (Premier Oil Company Limited)
under marketing of Petroleum Products (Federal Control Act, 1974)
June 6, 1974
The government incorporates “Petroleum Storage Development Corporation’ PSDC
August 23, 1976
PSCDC renamed to State Oil Company Limited (SOCL)
September 15, 1976
The Governement purchases ESSO undertakings, vests their control in SOCL
December 30, 1976
The Government merges PNO and POCL into SOCL (State Oil Company Limited) and
renames it Pakistan State Oil Company Limited (PSO)
1999
The new vision program is launched with the new logo of PSO.
Shares information:-
The company also produces and markets a variety of products under its own brand,
including motor oils and lubricants. PSO's sales extend to jet fuels and marine fuels,
LPG, CNG, kerosene, and other petrochemicals. The company is also the leading
supplier to Pakistan's utility and industrial sectors. Nonetheless, retail sales remain
the company's largest revenue-generator, representing some 90 percent of the
group's sales. These topped PKR 254 billion ($4.27 billion) in 2005, making PSO
Pakistan's largest company and the flagship of the Pakistani government's
privatization effort in the early 2000s. The Pakistani government continues to hold
more than 25.5 percent of PSO's shares, while a group of institutional investors,
primarily banks, control more than 37.5 percent of group stock. PSO has been
hailed for its dramatic turnaround, from inefficient government-run organization to a
streamlined, modern corporation, a transformation largely credited to the
leadership of Managing Director Tariq Kirmani. PSO is listed on the Karachi Stock
Exchange.
Read more: Pakistan State Oil Company Ltd. Business Information, Profile, and
History - Pso, Government, Pakistani, Country, Market, and Petroleum
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Ltd.html#ixzz13vfKAtbq
PSO price earning and dividend chart:-
Dividend Information Latest announced dividend payment
Book Closure Date
Rate From To Payment Date
Rs. 5.0/share 11th March, 2009 17th March, 2009 09th April, 2009
Two ways for shareholders to receive dividends
For dividends paid to shareholders who have shares registered in their name, there are two
alternatives:
Direct Deposit: The dividend payment is sent on the dividend payable date directly to your
Bank.
Cheque: You may have your dividend cheques sent at your given address.
Dividends approved by BOM, are paid to shareholders on the basis of entitlement determined
on Book Closure date. Shares must be purchased and duly registered before the book closure
date to be entitled to receive the dividend.
Dividends per share paid during last five years:-
2008 2007 2006 2005 2004
1st Interim 50% 60% 60% 110% 70%
2nd Interim 60% 40% 50% 50% 30%
3rd Interim - Nil 50% Nil Nil
Final 125% 110% 180% 110% 75%
Total 235% 210% 340% 270% 175%
Share price graph for last five days
Oil companies share In Pakistan
KARACHI: Fuel prices in the southern regions of Pakistan will be lower as compared to
northern parts because of the abolition of the internal freight equalisation margin (IFEM).
The IFEM is used to maintain uniform prices of fuel across the country. The petroleum ministry,
on Pakistan State Oil’s (PSO) recommendation, had asked the Economic Coordination
Committee to deregulate the inland freight equalisation margin on petroleum products. PSO is
expected to benefit the most from IFEM with the power to set market prices because of its high
market share, said BMA Capital analyst Muhammad Ali Taufiq in his research report.
The abolition of the inland freight equalisation margin will most likely be announced in the
national budget on June 5, according to Topline Securities. The IFEM is used for high speed
diesel (HSD), petrol, high octane blending component (HOBC), kerosene and light diesel oil.
South versus North It is highly anticipated that the deregulation of IFEM will take its toll on high
speed diesel and petrol in the initial period.
Such measures will significantly reduce high speed diesel and petrol prices in the south
compared to the northern regions due to the following reasons. Imported petroleum products will
be cheaper in Karachi as the port is located in the city, which will keep the transportation cost
lower as compared to northern parts of the country. High concentration of refineries in the south
will further facilitate the availability of petroleum products and achieve synergies with respect to
internal freight charges.
Consumption of petroleum products in the south is highly concentrated in the urban areas which
are in close proximity to the port and the refineries, compared to the north where consumption is
evenly spread over a larger area PSO to benefit the most Deregulation of IFEM will impact
different oil marketing companies in different ways in each province. PSO is expected to benefit
the most with the power to set market prices because of its high market share, said the analyst.
PSO has the largest retail distribution network in the country representing 56 per cent of the
total. PSO holds a market share of 48 per cent in petrol and 61 per cent in high speed diesel. PSO
has an 84 per cent share in Balochistan and can make a price monopoly in the region, the analyst
said. Leading players in Sindh – PSO, Shell and Caltex – may decide to keep one price in the
province and set up barriers for entry of other oil marketing companies. Punjab would continue
to remain a competitive region where major players can collectively set IFEM, added the analyst.
Published in the Express Tribune, May 20th, 2010
Published in the Express Tribune, May 20th, 2010.
Moody rating:
Share price
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