Pakistan State Oil Company Limited
Third Quarter Financial Statement 31 Mar 2023
The petroleum industry saw a significant decline of 19.6% in white oil sales - a dip of 17.1% in motor gasoline and 24.9% in diesel, mainly due to a slowdown in economic activities and inflating fuel prices. Additionally, the demand for black oil also declined by 32.1% as a result of limited furnace oil-based power generation given the reduced demand for electricity across the country.
[PSO recorded] a 2.9% increase in its white oil market share compared to the same period last year, PSO sold around 51% of the industry volume. The major contributor was diesel, in which the company increased its market share by 4.1%, closing the period at 54.4%.
Circular debt continues to be a major concern. Receivables from SNGPL increased by 65% from March 31, 2022, increasing PSO's average borrowings by 157% and finance cost by a staggering 995 basis points compared to the same period last year. A number of options are under discussion with the government to resolve the issue and reduce the unwarranted onus on PSO's financials.