KARACHI: K-Electric Limited, the leading power generation and supply company, has announced plans to raise Rs12 billion through the issuance of Sukuk.
(more…)Category: Energy
You can go through stories related to energy. The stories are about changes in petroleum prices and updates on energy sector of Pakistan and world.
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Pakistan Oilfields declares Rs10.92 billion half year profit
KARACHI: Pakistan Oilfields Limited on Friday announced 64 per cent growth in its net profit to Rs10.92 billion during first half (July – December) 2021/2022.
The company’s net profit for the same half of the last year was Rs6.5 billion.
The company declared earnings per share (EPS) at Rs38.48 for the half year ended December 31, 2021 as compared with EPS Rs23.42.
READ MORE: Pakistan Oilfields announces large oil, gas discovery in Kohat
The board of directors of Pakistan Oilfields met on Friday February 04, 2022 to approve the financial results of the company for six months ended December 31, 2021.
The board approved an interim cash dividend for the half year December 31, 2021 at Rs20 per share i.e. 200 per cent.
Net sales in 2QFY22 climbed up by 44 per cent YoY, clocking-in at Rs12,610 million against Rs8,773 million during SPLY as a result of i) 79 per cent YoY surge in realized oil prices and ii) 8 per cent YoY Pak Rupee depreciation against USD.
Meanwhile, oil and gas production plummeted by 10.2 per cent and 9.7 per cent YoY, respectively. Whereas, topline in 1HFY22 clocked-in at PKR 23,687 million, witnessing a growth of 35 per cent YoY given a 71 per cent YoY hike in average realized oil prices.
The exploration costs ascended by three times YoY in 2QFY22, arriving at PKR 108 million compared to PKR 34 million in SPLY, given higher geological and geophysical cost during the period. On a cumulative basis, exploration costs during 1HFY22 reached PKR 559 million, up by 5x YoY owed to higher seismic activity.
Other income depicted a massive jump of 8x YoY, reaching PKR 2,018 million during 2QFY22 in contrast to PKR 242 million during the same period last year. This massive increase comes on the back of exchange gain on foreign currency tagged with higher income from bank saving accounts, deposits and investments. Similarly, other income during 1HFY22 comes out to be PKR 4,718 million, up 8x YoY.
The company booked effective taxation at 36 per cent in 2QFY22 vis-à-vis 39 per cent in 2QFY21.
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Attock Petroleum declares 208% growth in six-month profit
KARACHI: Attock Petroleum Limited on Friday declared 208 per cent growth in profit after tax for the six months period ended December 31, 2021.
The company announced Rs6.61 billion as profit after tax for the period under review as compared with Rs2.41 billion profit after tax for the same period of the last year.
Attock Petroleum Limited announced earnings per share of Rs66.40 for the six months period ended December 31, 2021 as compared with EPS of Rs21.56 in the same period of the last year.
The board of directors of Attock Petroleum met on Friday February 04, 2022 and announced an interim cash dividend for the six month period ended December 31, 2021 at Rs15 per share i.e. 150 per cent.
The board however approved no bonus share, right share or any other entitlement/corporate action.
The company declared profit before tax of Rs9.37 billion for the first half (July – December) 2021 as compared with Rs2.99 billion in the same period of the last year.
The net sales of the company increased sharply to Rs154.27 billion during the first half of the current fiscal year as compared with Rs89.97 billion in the corresponding half of the last fiscal year.
Operating expenses of the company also surged to Rs3.4 billion during the period under review as compared with Rs1.79 billion in the same period of the last fiscal year.
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Saudi oil facility for Pakistan to start soon
ISLAMABAD: Saudi Arabia to operationalize soon the oil facility to Pakistan, it was agreed at a meeting on Thursday.
Ambassador of the Kingdom of Saudi Arabia in Islamabad Nawaf bin Saeed Al-Malkiy called on the Federal Minister for Economic Affairs Omar Ayub Khan in his office on Thursday.
READ MORE: KSA extends oil on deferred payments to Pakistan
During the meeting, it was agreed to operationalize the Saudi Oil Facility at the earliest.
The Financing Agreement worth $ 1.2 billion for import for petroleum products was signed on November 29, 2021 between the Saudi Fund for Development (SFD) and Economic Affairs Division (EAD), Pakistan.
As per Financing Agreement, the SFD will extend financing facility up to $100 million per month for one-year for purchase of petroleum products on deferred payment basis.
Both the sides discussed ongoing development projects and new initiatives.
READ MORE: SBP signs $3bn deposit agreement with Saudi Fund
The Minister for Economic Affairs appreciated the Saudi support in the priority development areas, said a press release received here today.
They also discussed the remaining work of development projects in the earthquake affected areas of Azad Jammu & Kashmir (AJK) and Khyber Pakhtunkhwa (KP).
Saudi Fund for Development (SFD) is providing financial assistance for various development projects in the areas of Energy, Health, Education and Infrastructure.
Most recently, the SFD has committed to provide financing for Mohmand Dam Project, Shounter Hydropower Project, Jagran-IV Hydropower Project, Gravity Flow Water Scheme Mansehra, and Abbottabad- Muzaffarabad Road Project.
The Saudi Ambassador assured of continued support at all level to further strengthen the bilateral economic cooperation between the two brotherly countries.
The Saudi Ambassador expressed that the Kingdom of Saudi Arabia is committed to play a much stronger role in the socioeconomic development of Pakistan.
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Petroleum prices kept unchanged for next fortnight
ISLAMABAD: The government has kept the prices of petroleum products unchanged for next fortnight on Monday after Prime Minister Imran Khan rejected the proposals to hike the POL prices.
Prime Minister Imran Khan Monday rejected proposals to increase the petrol price by Rs 10 per liter and diesel by Rs 14, in the national interest.
READ MORE: Pakistan’s petrol price rises to record high at Rs147.83
The prime minister said that government would bear the burden of the price hike this time to protect the people from the additional economic burden.
READ MORE: Prices of all POL products increased to wish New Year
As the government was striving to avert the burden of inflation from the people, therefore the prime minister deferred the Energy Ministry’s summary despite the fact that the oil prices were increasing worldwide owing to the swelling global inflation.
Following the decision, the prices of petroleum products will be maintained at: petrol Rs147.83 per liter; high speed diesel (HSD) Rs144.62 per liter; kerosene Rs116.48 per liter; and light diesel oil at Rs114.54 per liter.
READ MORE: Petrol price reduces to Rs140.82 per liter
A statement issued by the Finance Division stated that the petroleum products are showing substantial increase in the international market and presently trading at highest level since 2014. The oil prices have witnessed an increase of 14.5% just in last month in the global market.
The existing Sales Tax rate and Petroleum Levy on various petroleum products are much below the budgeted targets. The Government is bearing the revenue loss of around Rs.30 billion (fortnightly) on account of budgeted to existing PL and ST rates and Rs. 260 billion annually due to reduced ST rate.
READ MORE: Govt. keeps petroleum prices unchanged
Despite revenue losses due to rising petroleum prices globally, the Prime Minister of Pakistan has deferred the proposal by OGRA to increase up to Rs. 16.79/Litre in the petroleum product prices and desired that petroleum product prices shall remain the same from 1st February, 2020 as notified earlier on 15th January, 2022 for providing maximum relief to the general public. The Prime Minister has further desired to keep the prices at the same level through adjustments in Sales Tax, if required.
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NBP lends Rs18.8bn in Hascol’s Rs54bn scam
KARACHI: National Bank of Pakistan (NBP) has lent an amount of Rs18.8 billion out of Rs54 billion scam in Hascol Petroleum Limited.
National Assembly Standing Committee on Finance and Revenue on Thursday reviewed the performance of NBP.
The committee also discussed the recent Hescol loan scam of Rs 54 billion; of this NBP had lent Rs18.8 billion. MNAs expressed their reservations on loan security procedures, mainly when the amount of loan was so big.
READ MORE: NBP directed to pay Rs0.5 million to fraud victim
The committee expressed dissatisfaction over the performance of the bank and emphasized on more corrective steps on administrative and financing sides; especially for financial inclusion in rural and remote areas of the country.
Headed by MNA Faizullah, NA standing committee members included Abdul Wasay, Chaudhry Khalid Javed, Dr. Nafisa Shah, Ali Pervaiz Malik, Muhammad Israr Tareen, Qaiser Ahmed Sheikh, Faheem Khan and Jamil Ahmed Khan.
READ MORE: No disruption in transactions post cyber-attack on NBP
The chairman formed a sub-committee to look into the issues/queries raised by the standing committee members, and the discrepancies surfaced in the bank’s lending and administrative matters.
It will submit its detailed report to the main NA standing committee at the earliest for its recommendations to the concerned government authorities through the National Assembly.
Earlier, NBP’s Group Heads gave sector-wise presentations to the Committee.
The committee members desired that NBP President, who was on leave, would have been present and could better respond to their queries.
A day earlier, the bank said it was cooperating with the Federal Investigation Agency (FIA) in the multibillion scam.
READ MORE: NBP announces Rs17.04 billion as half year profit
The FIA arrested Mumtaz Hasan, founder of the Hascol Petroleum Limited (HPL), on January 23, 2022. It said a total of 30 suspects — including present and former top officials of the NBP, HPL and other organisations — had been booked in the case and that efforts were under way to arrest the remaining suspects.
“As has been reported in the press, the FIA is conducting an inquiry on Hascol Petroleum’s banking arrangements with the NBP as well as several private and other public sector banks,” the NBP said.
The bank said it had been and continued to cooperate fully with the FIA on this investigation and made available all relevant records and transactional history, including arranging meetings with its employees who have managed Hascol’s relationship with the bank.
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FBR slashes sales tax rates on petrol, HSD
ISLAMABAD: Federal Board of Revenue (FBR) on Tuesday slashed sales tax rates on petrol and high speed diesel (HSD) in order to reduce the impact of high oil prices at consumer end.
The FBR issued SRO 88(I)/2022 dated January 18, 2022 to notify changes the sales tax rates on supply of petroleum products.
The sales tax on supply of petrol has been reduced to 2.5 per cent ad valorem from 4.77 per cent. Similarly, the rate of sales tax on supply of high speed diesel has been reduced to 5.44 per cent from 9.08 per cent.
The FBR kept unchanged the sales tax rates on kerosene and light diesel oil at 8.30 per cent and 2.70 per cent, respectively.
The revenue body previously issued SRO 01(I)/2022 dated January 3, 2022 to change the rate of sales tax on petroleum products.
Earlier on January 15, 2022, the government announced to increase prices of all petroleum products for next fortnight.
READ MORE: Pakistan’s petrol price rises to record high at Rs147.83
According to the notification, the price of petrol has been increased by Rs3.01 to Rs147.83 per liter from Rs144.82.
The price of high speed diesel (HSD) has been increased by Rs3 to rs144.62 per liter from Rs141.62.
The rate of kerosene has been enhanced by Rs3 to Rs116.48 per liter from Rs113.48.
The price of light diesel oil has been increased by Rs 3.33 toRs114.54 per liter from Rs111.21.
According to a notification issued by the Finance Division on January 15, 2022, the decision to enhance domestic prices of petroleum products because the international oil price had registered 6.2 per cent during the last week. Presently, at the highest level since last year.
READ MORE: Prices of all POL products increased to wish New Year
The existing sales tax rate and petroleum levy on various petroleum products are much below the budgeted targets.
The finance ministry said that against the recommendations of Oil and Gas Regulatory Authority (OGRA) for increase of Rs5.52 per liter in petrol and Rs6.19/liter in high speed diesel prices, the Prime Minister had directed to absorb at the international prices through further cut in sales tax from last fortnight.
“The finance ministry will take Rs2.6 billion revenue hit due to reduced sales tax rates,” it added.
Therefore, the government has decided to make partial increase in the prices of the petroleum products in order to provide relief to the end consumers.
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Pakistan’s petrol price rises to record high at Rs147.83
ISLAMABAD: The petrol price in Pakistan has been increased to a record high of Rs147.83 per liter, said a statement issued by the finance ministry on Saturday.
The government announced to increase prices of all petroleum products with effect from January 16, 2022.
READ MORE: Prices of all POL products increased to wish New Year
According to the notification, the price of petrol has been increased by Rs3.01 to Rs147.83 per liter from Rs144.82.
The price of high speed diesel (HSD) has been increased by Rs3 to rs144.62 per liter from Rs141.62.
The rate of kerosene has been enhanced by Rs3 to Rs116.48 per liter from Rs113.48.
READ MORE: Petrol price reduces to Rs140.82 per liter
The price of light diesel oil has been increased by Rs 3.33 toRs114.54 per liter from Rs111.21.
According to the notification the decision to enhance domestic prices of petroleum products because the international oil price had registered 6.2 per cent during the last week. Presently, at the highest level since last year.
The existing sales tax rate and petroleum levy on various petroleum products are much below the budgeted targets.
READ MORE: Govt. keeps petroleum prices unchanged
The finance ministry said that against the recommendations of Oil and Gas Regulatory Authority (OGRA) for increase of Rs5.52 per liter in petrol and Rs6.19/liter in high speed diesel prices, the Prime Minister had directed to absorb at the international prices through further cut in sales tax from last fortnight.
The finance ministry will take Rs2.6 billion revenue hit due to reduced sales tax rates.
Therefore, the government has decided to make partial increase in the prices of the petroleum products in order to provide relief to the end consumers.
READ MORE: Petroleum prices kept unchanged for next fortnight
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FBR fixes CNG value for charging sales tax
In a move to streamline and regulate the collection of sales tax on compressed natural gas (CNG), the Federal Board of Revenue (FBR) has issued a new notification, SRO 39(I)/2022 dated January 08, 2022, to establish fixed values for CNG.
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FBR raises sales tax on all petroleum products
ISLAMABAD: The Federal Board of Revenue (FBR) on Monday notified an increase in sales tax on all the petroleum products.
The FBR issued SRO 01(I)/2022 to notify increase in sales tax rates on petroleum products. The FBR amended the rates of sales tax, which were issued previously through SRO 1604(I)/2021 on December 16, 2021.
READ MORE: Prices of all POL products increased to wish New Year
According to the latest notification enhanced the sales tax on petrol from 1.63 per cent to 4.77 per cent.
The sales tax rate on high-speed diesel has been increased to 9.08 per cent from 7.37 per cent.
The FBR enhanced the sales tax on kerosene oil to 8.30 per cent from 8.19 per cent. Likewise, the sales tax on light diesel has been increased to 2.70 per cent from 0.46 per cent.
The government on December 31, 2021 increased prices of all petroleum products effective from January 01, 2022.
READ MORE: Petrol price reduces to Rs140.82 per liter
The prices have been increased across the board around Rs4 per liter on all the products.
According to a notification issued by the finance division, the new price of petrol has been increased by Rs4 to Rs144.82 per liter from Rs140.82. The rate of high-speed diesel (HSD) has been increased by Rs4 to Rs141.62 per liter from Rs137.62. Similarly, the price of kerosene has been increased by Rs3.95 to Rs113.53 per liter from Rs109.53. Likewise, the price of light diesel oil has been increased by Rs4.15 to Rs111.06 per liter from Rs107.06.
READ MORE: SBP revises manual on remittances for petroleum sector
The notification stated that in the fortnightly review of petroleum products prices, the prime minister had rejected the proposal of Oil and Gas Regulatory Authority (OGRA) for an increase in prices of petroleum products and advised to increase only Rs4 per liter to meet the petroleum levy target agreed with the International Monetary Fund (IMF).
“Sales tax on petrol and diesel has been adjusted downwards as compared to December 16, 2021, to keep the prices lower,” the notification stated.