The Oil and Gas Regulatory Authority (OGRA) has imposed a penalty of Rs10 million on Hascol Petroleum Limited and suspended its marketing license for Khyber Pakhtunkhwa. The regulatory action, communicated to Hascol on October 20, 2020, was disclosed by the company in a notification to the Pakistan Stock Exchange (PSX) on Thursday.
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Hubco plans generating Rs6 billion through Sukuk
KARACHI: The Hub Power Company Limited (Hubco) through its wholly owned subsidiary, Hub Power Holdings Limited, is in the process of finalizing issuance of Sukuk, a statement said on Monday.
This represents Hubco’s keen interest in promoting and supporting the Islamic financing options and the local financial industry.
This proposed Sukuk in the sum of Rs6 billion for a tenor of 5-year, which is being partnered with Meezan Bank Limited as Shariah Advisor and Arif Habib Limited as its arranger will be available for subscription by financial institutions, investment companies and other eligible institutions.
These funds will be utilized to meet the ongoing capital requirements of the company.
With an aggressive growth plan and focus on growing the shareholder value, Hubco is pursuing opportunities in the domain of thermal energy, alternate energy and water treatment.
The Company has an installed capacity of producing over 2920MW through its four plants in Hub, Narowal and Azad Kashmir.
The Company is the only power producer in Pakistan with four projects listed in the CPEC, namely imported coal-based China Power Hub Generation Company (Private) Limited (CPHGC) at Hub, Thar Energy Limited (TEL) and Thalnova Power Thar (Pvt.) Ltd. and Sindh Engro Coal Mining Company (SECMC) at Thar Coal Block II. Both the 330MW power plants in Thar Block II have achieved their financial close and are expected to meet their Commercial Operations Date (COD) in 2021 and 2022.
Being a domestic source of energy fuel, the power generation and mining projects in Thar Coal are expected to fortify the energy security of the country and would bring about substantial savings in foreign exchange of the Country.
The Company is also investing in the Community Development Programs in the fields of health, education, livelihood and basic infrastructure in the vicinity of its plants.
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World Bank to finance $1.15 billion for two power projects
ISLAMABAD: The World Bank will provide a concessional financing to support Pakistan’s two power projects.
Prime Minister Imran Khan today witnessed the signing ceremony of two financing agreements worth $ 1.15 billion with the World Bank.
This is concessional financing being provided by the World Bank for the two projects to support hydropower and renewable energy development in Khyber Pakhtunkhwa, evacuation and transmission of power from DASU Hydropower Project.
Federal Minister for Economic Affairs Makhdum Khusro Bakhtyar, Federal Minister for Power Omar Ayub Khan, Chief Minister Khyber Pakhtunkhwa Mahmood Khan, Advisor to CM Khyber Pakhtunkhwa Himayat Ullah Khan were also present.
The projects’ details are: i. Khyber Pakhtunkhwa Hydropower and Renewable Energy Development (KHRE) Project – $450.0 Million.
The project’s development objective is to increase renewable energy generation and strengthen the capacity of associated institutions in Khyber Pakhtunkhwa.
The Khyber Pakhtunkhwa Hydropower and Renewable Energy Development (KHRE) is a transformational program that would help in building capacity and institutions for harvesting the vast renewable energy potential of the Khyber Pakhtunkhwa Province.
The project will support the
(i) construction of 88MW Gabral-Kalam Hydropower Project; and
(ii) construction of 157MW Madyan Hydropower Project.
It would provide planning and management capability to help transform Pakhtunkhwa Energy Development Organization (PEDO) into a world class entity for development of renewable energy resources. ii. Evacuation of Power from DASU Hydropower (Phase-I) Project – US$700.0 million:
The objective of the project is evacuation and transmission of power from 2160 MW Dasu Hydropower (Phase-I) Project to respective load centers of DISCOs by construction of 765 kV double circuit transmission line from DASU HPP to Islamabad via Mansehra.
It will also facilitate in evacuation of power from new upcoming projects in that area. Noor Ahmed, Secretary, Economic Affairs Division signed the two loan agreements on behalf of Government of Pakistan while the representatives of Government of Khyber Pakhtunkhwa, WAPDA and National Transmission & Dispatch Company (NTDC) signed their respective project agreements.
Najy Benhassine, Country Director, World Bank signed the agreements on behalf of the World Bank.
Prime Minister Imran Khan stated that Pakistan values its partnership with the World Bank and the Government will continue with the objective of socio-economic uplift of the people of Pakistan.
The Country Director of WB reiterated his commitment to support Pakistan and appreciated the government’s resolve, efforts and measures in the fight against COVID-19 and continuing efforts for structural reforms.
Makhdum Khusro Bakhtyar, Minister for Economic Affairs, while thanking the World Bank for its continued support, said that Government of Pakistan is committed to continue the structural reforms process in the country.
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Tax exemption to LNG Terminals costs Rs732 million
ISLAMABAD: Federal Board of Revenue (FBR) has granted exemption of Rs732 million to LNG Terminal Operators and Terminal Owners during tax year 2020.
According to official documents made available to PkRevenue.com, the FBR allowed the exemption to two taxpayers engaged in LNG Terminal Operators and Terminal Owners.
The exemption is available from total income under Clause 141 of Part 1 of Second Schedule, Income Tax Ordinance, 2001.
The FBR said that profit and gains derived by LNG Terminal Operators and Terminal Owners are exempt under the income tax laws.
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FBR grants Rs27 billion income tax exemption to power generation companies
The Federal Board of Revenue (FBR) has granted income tax exemptions totaling Rs27 billion during the tax year 2020 to power generation companies operating in Pakistan. These exemptions were extended to 73 companies, underlining the government’s efforts to support the energy sector.
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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.
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Policy issued for import of petroleum products
ISLAMABAD: The ministry of commerce has issued policy for import of petroleum products through under the new Import Policy Order, 2020.
The ministry issued SRO 902(I)/2020 dated September 25, 2020 to notify the import policy order.
01. Under the policy, petroleum oils and oils obtained from bituminous minerals crude shall only be importable by oil refineries.
02. Motor spirit including aviation spirit, kerosene, including kerosene type jet fuel (JP-1, JP-4), other medium oils and preparations/light diesel oil, gas oils/high speed diesel oil and other fuel oils shall be importable by approved oil marketing companies.
Provided that oil refineries shall be allowed to import higher octane products (95/97 RON) for blending purposes only.
03. Furnace oil shall be importable by oil marketing companies, WAPDA, KESC, IPPs and industrial consumers for self-consumption:-Provided that furnace oil shall be importable by commercial importers subject to clearance from Oil Companies’ Advisory Committee (OCAC) of the Ministry of Petroleum and Natural Resources, Government of Pakistan.
04. For finished lubricants, the import of automotive engine oils of quality level (API) SC/CC and above and automotive gear oils of (API) GL-4 and above shall be imported by commercial importers, lubricants blending companies, lube/oil marketing companies and refineries having valid registration with the Oil and Gas Regulatory Authority (OGRA) under the rules.
05. Residues of petroleum oils shall be importable by industrial manufacturers only subject to NOC from the Ministry of Climate Change.
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Gas utility issues disconnection notices to Sindh hospitals
KARACHI: Sui Southern Gas Company (SSGC) has issued a stern warning to the Sindh administration, cautioning that gas supply to its hospitals may be disconnected due to outstanding payments.
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K-Electric experiences cyber-attack
K-Electric Limited, the primary power utility provider for Karachi, faced a cyber-attack attempt earlier this week, resulting in the disruption of a few services. The company disclosed this incident in a statement released on Thursday, emphasizing that critical customer services remain unaffected.
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PSO declares annual loss of Rs6.46 billion
KARACHI: Pakistan State Oil Company Limited (PSO) on Tuesday declared Rs6.46 billion loss for the year ended June 30, 2020, according to financial results of the company submitted to Pakistan Stock Exchange (PSX).
The company posted Rs10.56 billion after tax profit for the year ended June 30, 2019.
The company recorded sales of Rs1,108 billion for the year under review as compared with sales of Rs1,154.3 billion in the preceding year.
The gross profit of the company fell to Rs12.22 billion for the year ended June 30, 2020 as compared with the profit of Rs36 billion in the preceding year.
The operating costs of the company fell to Rs14.68 billion for the year ended June 30, 2020 as compared with Rs17.1 billion in the preceding year.
The PSO declared Rs13.77 loss per share for the year under review as compared with Rs22.55 earning per share during the preceding year.