KARACHI: According to Taurus Securities, Pakistan State Oil (PSO) the state-owned conglomerate is considering investing up to Rs40b for revamping its storage capacity, expand its retail outlets and bolster its downstream capabilities.
PSO’s decision for making such a big investment comes at a time when its market share declined from 55.9pc in June 2016 to 54.8pc by June 30th, 2017.
An analyst at Taurus Securities, Waqas Ahmed commented as the demand of petroleum products rises, PSO intends to invest $500m in Pakistan Refinery Limited (PRL) and double its capacity over the course of next 3-4 years.
Out of the proposed Rs40b investment planned, Rs25 to Rs30b will be equity financed, said Ahmed.
On Monday, PSO had reported its results for the financial year 2016-17, registering a 77pc increase in net profits which reached Rs18.22b. Gross profits registered a growth of 39.44pc YoY to reach Rs37.198b from Rs22.525b in SPLY. Gross profit margin for FY 2017 was reported at 42.3pc compared to 33.2pc last year.
Finance cost also decreased by 25pc to Rs1.6bn, while operating expenses stayed in check, growing by 6pc YoY.
PSO’s sales of furnace oil was reported to have risen by 11pc in last FY, lubes increasing 28pc, jet fuel by 18pc and motorline gas by 9pc.