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MD unfolds rationale of company's plans.

MD Unfolds Rationale of Company's Plans

The fourteenth AGM of Pakistan State Oil (PSO) held in Karachi, witnessed an interesting, enlightened and pertinent dialogue on the queries raised by the shareholders. Although, this largely attended gathering of shareholders lasted about 90 minutes, the variety of questions and the brief but incisive discourse on operational aspects by Mr. M.M. Farid, PSO's Managing Director, who was in the chair, retained everyone's interest. The professionalism and distinctive competence of the Company management also came to the fore in the clarifications offered by Mr. M.M. Farid, Managing Director of the Company. He was especially elucidative and remarkably objective to the entire satisfaction of the attentive gathering at the AGM when in reply to the queries of the shareholders pertaining to the special projects of the company, he offered the rationale of company plans in the perspective of national and international energy situation.

Company's performance during the year 1989-90 shows that profit before tax of Rs. 367.2 million (1988-89: Rs.330.7 million) and profit after tax of Rs. 199.2 million (1988-89 Rs. 198.7 million) compare favourably against previous year's performance. The Company maintained the tempo of dividend at 40 per cent cash and 1:10 Bonus at par with last year. At the same time shareholders Equity has improved to Rs. 1153 million from Rs. 1036.5 million last year. As a result the break-up value of each share of Rs. 10/-has risen from Rs. 55.16 to Rs. 55.58.

The Company has also successfully managed to synchronise national and corporate objectives. This is evident from the fact that the company handled larger trading volume of Rs. 6.912 million tonnes during 1989-90 as compared with 6.176 million tonnes during the previous year. The Managing Director in his review said that the Company has continued to move ahead in developing petroleum products infrastructure facilities in the country, the most significant being its plans of constructing additional storages in the up-country.

Highlighting the progress of PSO's special projects, the Managing Director pointed out that the Government had entrusted the company with the construction of 163,000 tonnes of additional storages in the up-country out of which 72,600 tonnes of storages have been completed. Of the remaining 91,300 tonnes about 63 per cent is to be located at Machike.

During the year under review new depots at Taru Jhabba and Morgah were commissioned and storages at Khuzdar, Quetta, Shikarpur, Shershah and Chaklala were now ready for commissioning. Other projects of significance pertained to the construction of a 10" dia, 32 Km product pipeline connected Mahmood Kot with WAPDA's Power Station at Kot Addu and 42,000 tonnes tankage at M. Kot. This system has been completed and commissioned and is capable of transporting both HSD and Furnace Oil. Another project of vital importance commissioned in February 90 involved laying of an 18" dia, 3 km long pipeline from Port Qasim to KESC Power Station and construction of a storage tank of 25,000 tonnes at the power station along with pumping facilities for transfer of product from receipt tank to KESC tankage. When queried with regard to the benefit of pipeline projects, the Managing Director said that in the development of this medium of oil transportation through pipeline, the objective j{m{tct{mn mf }a{j cnd road
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been kept in sight. In the light of the government plans, strategy of dispersing the storages, congestion at the Keamari Port and hazards involved in the rail/road movement, the Managing Director elucidated the future significance of oil movement through pipelines. The Managing Director in reply to various queries in the context of ensuring regular supplies of petroleum products in crisis or emergencies, highlighted the forward planning of PSO. He said that the buffer stock arrangement of petroleum products by PSO gave the Government a reasonable time to arrange alternate supplies and averted the possible crisis in the petroleum energy distribution in the country.

PHOTO : Mr. M.M. Farid, Managing Director, PSO giving details of achievement made during the year 1990 on its 14th AGM held in Karachi. The company's sales stood at Rs. 29,819.52 million as compared to Rs. 26,814.19 million, while pretax profit stood at Rs. 367.17 million as compared to Rs. 330.65 million in 1990. The company paid 40 per cent dividend plus bonus @ 1:10 in 1990. The Paid-up capital stood at Rs. 206.68 million in 1990.
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Title Annotation:Pakistan State Oil's managing director unveils company plans at its fourteenth annual meeting
Publication:Economic Review
Date:Feb 1, 1991
Previous Article:Middle East crisis worsens debt burden for some countries.
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