Day: September 28, 2020

OGDCL declares over 15 percent decline in annual profit

KARACHI: Oil and Gas Development Company Limited (OGDCL) on Monday announce financial results and declared over 15 percent decline in annual profit mainly because of lower sales during the year.

In its financial results submitted to Pakistan Stock Exchange (PSX), the company declared Rs100 billion after tax profit for the year ended June 30, 2020 as compared with Rs118.38 billion in the preceding financial year, showing a decline of 15.52 percent.

The earnings per share also fell to Rs23.27 for the year 2020 as against EPS of 27.53 a year ago.

The company declared net sales of Rs244.85 billion for the year ended June 30, 2020 as compared with Rs261.48 billion a year ago.

According to Topline Securities, the company in FY20 recorded average net crude oil production of 36,073 bpd, average net gas production of 893 MMcfd, average net LPG production of 739 MTPD and average net Sulphur production of 54 MTPD.

Twenty-five wells were spud, comprising of fifteen exploratory/appraisal, five development and five re-entry/side track wells in FY20.

Average net realized price of oil was US$46.76/barrel during FY20 as against US$58.74/barrel last year.

Net realized price for natural gas was Rs393.32 per mmcf as against Rs337.66 per mmcf last year.

The company has recognized 8 dry wells in FY20 compared to 2 wells in FY19.

The company expects FY21 capex target at Rs55bn, targeting 45 wells herein exploratory wells are 31.

Nashpa production stats are likely to sustain over 2 years at 15-16k bopd.

The company is also evaluating ENI assets in Pakistan. To recall, ENI is planning to sell its assets in Pakistan.

The company is all set to bid for new blocks which are expected to be auction by this year end.

OGDC has received Rs6.5bn from Uch Power Private Limited, from the disbursements under the Pakistan Energy Sukuk-II.

In addition, the Company has also received some payments from SSGC and SNGP with average collection standing at around 70 percent.

Operating expenses of the company remained inflated in 4QFY20 due to year-end factors like some non-cash expenses and pension costs re-evaluation.

The effective tax rate clocked in at 30 percent in FY20 vs. 33 percent in FY19 due to absence of Super Tax.

September 28, 2020
List of companies for pre-shipment inspection under import policy
ISLAMABAD: The ministry of commerce has issued list of companies for pre-shipment inspection as envisaged in different provisions of Import Policy Order, 2020 shall be done in the exporting country.

The ministry issued SRO 902(I)/2020 dated September 25, 2020 to notify the Import Policy Order 2020.

Following are the name of the companies under Appendix-H of the Import Policy Order 2020:

a. Messrs Lloyds of London;

b. Messrs Quality Tech, LLC;

c. Messrs ABS;

d. Bureau Veritas;

e. Messrs SGS; and

f. Messrs IMTECH

The pre-shipment inspection companies as approved by Pakistan National Accreditation Council (PNAC) for the inspection of solar equipment (including but not limited to solar PV systems, off-grids /standalone solar PV systems, solar PV kits, solar PV panels, solar PV cells, inverters, charge controllers, balance of system components for PV systems, Low-voltage switchgear and control gear assemblies, power converters for use in PV power systems, insulated cables for use in PV systems, solar pumping systems for liquids, solar water heaters with accessories, solar stoves/cookers/ranges, etc. and parts thereof).

Through Appendix-O the ministry also issued list of pre-shipment inspection following agencies:
1. Baltic Control Pakistan, Suite No. 419, 4th Floor, The Cotton Exchange Building, II Chandigarh Road, Karachi on behalf of Baltic Control Ltd; Aarhus, Denmark.
2. NMCI Pakistan (Pvt.) Ltd; Suite # 105, Khurshid Fancy, Jamaluddin Afghani Road, SharfabadChowk, Karachi on behalf of NMCI, USA.
3. Inspectorates Corporation International (Pvt.) Ltd., A-53, Plot No. 26, St. 4, Nisar Road, Lahore Cantt, Lahore on behalf of Control Union, Germany.
4. Inspectorates Pakistan (Pvt.) Ltd., 1st Floor, Lason Square Building No. 1, Sabir Beg Shaheed Road, Karachi on behalf of Coteena Group of Companies, Switzerland.
5. M/s Control Union Pakistan (PVT) LTD, suit no 202.A, second floor, cotton exchange building, I.I Chundregarh Road, Karachi on behalf of Control Union Group of Companies, Netherland.
September 28, 2020
Stock market plunges by 960 points on political uncertainty

The stock market witnessed a significant downturn on Monday, with the benchmark KSE-100 index of Pakistan Stock Exchange (PSX) plunging by 960 points amid mounting political uncertainty following the arrest of an opposition leader.
(more…)

September 28, 2020
Rupee ends down by 10 paisas on import payment

KARACHI: The Pak Rupee ended down by 10 paisas against dollar on Monday owing to demand for import and corporate payments, dealers said.

The rupee ended Rs165.89 to the dollar from last Friday’s closing of Rs165.79 in the interbank foreign exchange market.

The currency dealers said that the rupee was under pressure during the day owing to dollar demand for import and corporate payments due to the last days for the quarter end.

However, they said that the approval of $300 million by the Asian Development Bank (ADB) had resulted in positive sentiments in the market. But it failed to help the local unit to offset losses.

They said that due to first day of week the demand for dollar usually on the higher side.

They said that the local currency is likely to rebound in coming days owing to positive economic indicators, especially the current account surplus during the first two months of the current fiscal year.

September 28, 2020
Agha Steel signs Rs10 billion worth sale agreement with Horizon Steel

KARACHI – In a major step toward boosting domestic steel production and reducing reliance on imports, Agha Steel Industries has signed a strategic memorandum of understanding (MoU) with Horizon Steel to supply 100,000 metric tons of low-carbon billets annually. The deal, valued at approximately Rs 10 billion per year, marks a significant milestone for the Steel sector in Pakistan.
(more…)

September 28, 2020
ADB approves $300 million to strengthen Pakistan’s capital market

The Asian Development Bank (ADB) has granted approval for a $300 million policy-based loan aimed at fortifying Pakistan’s finance sector.
(more…)

September 28, 2020
SBP issues framework for cloud outsourcing arrangements

KARACHI: State Bank of Pakistan (SBP) has issued framework for financial institutions outsourcing to cloud service providers (CSPs). The SBP said that to BPRD Circular No. 05 of 2017 on ‘Enterprise Technology Governance and Risk Management Framework for Financial Institutions (FIs)’ and BPRD Circular No. 06 of 2019 on ‘Framework for Risk Management in Outsourcing Arrangements by Financial Institutions’.
(more…)

September 28, 2020
Ministry issues procedure for imports under personal baggage, transfer of residence, gift scheme

ISLAMABAD: The ministry of commerce and issued procedure for imports and customs clearance under schemes including personal baggage, gift and transfer of residence.

The ministry of commerce issued SRO 902(I)/2020 dated September 25, 2020 and notified Import Policy Order 2020 while repealing the previous Import Policy Order, 2016.

The ministry through the policy order issued procedure for import under personal baggage, gift scheme and transfer of residence schemes.

Procedure for import

(1) Personal baggage: Filing of Goods Declaration under section 79 of the Customs Act, 1969 accompanied with the following documents namely:

a) Purchase receipt;

b) Bill of Lading dated not later than 120 days from the date of arrival in Pakistan of the applicant; and

c) Attested photocopy of passport or Pakistan Origin Card (original passport or Pakistan Origin Card required .to be checked by customs at the time of clearance)

(2) Gift Scheme: Filing of Goods Declaration under section 79 of the Customs Act, 1969 accompanied with the following documents namely;-

a) NIC of donee;

b) Purchase receipt;

c) Bill of Lading (showing name and address of consignee);

d) Attested photocopy of passport or Pakistan Origin Card; and

(3) Transfer of Residence: Filing of Goods Declaration under section 79 of the Customs Act, 1969 accompanied with the following documents namely;-

a) Purchase receipt;

b) Attested photocopy of passport or Pakistan Origin Card (original passport or Pakistan Origin Card may be required to be checked by the customs at the time of clearance);

c) Bill of Lading (dated not later than 120 days from the date of arrival of applicant.

September 28, 2020