KARACHI: Pakistan State Oil (PSO) has reported a 14% year-on-year rise in profit, reaching Rs15 billion during the first nine months of FY2024–25, despite persistent circular debt challenges and market share pressures.
In a corporate briefing held Friday, PSO revealed that total receivables had ballooned to Rs732 billion by the end of March, including Rs325 billion in principal from SNGPL alone. Efforts to recover outstanding dues—especially the Rs200 billion in Late Payment Surcharges—remain a top priority, although a definitive debt resolution plan is still awaited.
Since February 2024, SNGPL has halted further circular debt build-up by committing to monthly payments. However, receivables from OGDC and PPL increased in Q3 due to delayed payments from Sui companies.
The company hinted at a potential increase in petroleum product margins, though any change in the immediate fortnight is unlikely due to rising global oil prices amid geopolitical tensions in the Middle East.
PSO expanded its footprint with 67 new retail outlets, growing its nationwide network to over 3,600 stations. The company also strengthened infrastructure with new tank constructions and rehabilitated storage facilities, pushing total capacity to 1.24 million tonnes.
Fuel smuggling remains a significant threat, with daily inflows ranging between 2,000 and 3,000 tonnes, hurting market dynamics. PSO’s market share slightly declined, attributed to aggressive discounting by competitors. Nevertheless, the management estimates a realistic hold of 45–46% and plans organic growth.
Digital transactions now account for 12–13% of PSO’s total payments—higher than the industry average—reflecting its push towards financial innovation.
Despite inventory losses from falling international oil prices—from \$85.03/bbl in 9MFY24 to \$76.43/bbl in 9MFY25—PSO’s financials remain strong. The national fuel mix has shifted significantly, with mogas and HSD rising while furnace oil usage dropped. PSO’s product mix mirrors this shift, with JP-1 share increasing notably to 9.6%.
