20000224

PSO declares 30 pc interim dividend

RECORDER REPORT

KARACHI: The Pakistan State Oil has declared a 30 percent interim dividend for the six months ended December 31, 1999 following an increase of 17.42 percent in its profits.

The profit after taxation of PSO in the six months ended December 31, 1999 was Rs 865.825 million as compared to Rs 728.746 million of the corresponding period a year ago, showing an increase of 17.42 percent.

The sales of the company soared to Rs 45,251 million as against Rs 28,111 million of the same period a year ago, showing an increase of 60.98 percent. The company declared a interim dividend of 30 percent.

The PSO lost substantial share in Lubes, MoGas and Diesel during first half of this financial year but a substantial inventory gain helped compensate its profitability. Oil prices were adjusted upward on December 11, 1999 resulting in one time inventory profits that reflected in the announced results.

PSO is the market leader in the country's downstream oil sector. It has the industry's largest dealer network and enjoys a 73 percent market share. Major products include furnace oil and diesel oil, which make up 52 percent and 37 percent of total volumes respectively.

The share price of the company in the coming week might attract some buying on these levels if it crosses Rs 250, there is a possibility that fresh buying might emerge. However, another factor which push the share prices up is that the government might review oil prices by March and if the international trend remains same the government might increase the prices which might trigger another snap rally in the company's share, said an analyst.