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Category: Corporate

  • Standard Chartered Bank declares Rs13.72 bn as annual profit

    Standard Chartered Bank declares Rs13.72 bn as annual profit

    KARACHI: Standard Chartered Bank (Pakistan) Limited on Friday announced Rs13.72 billion as net profit for the year ended December 31, 2021.

    The net profit of the bank slightly up when compared with Rs13.13 billion in the preceding year ended December 31, 2020, according to the financial results submitted to the Pakistan Stock Exchange (PSX).

    READ MORE: Allied Bank’s annual profit declines to Rs17.50 billion

    Standard Chartered Bank (Pakistan) Limited announced earnings per share at Rs3.55 for the year under review up from last year’s Rs3.39.

    The board of directors of the bank in their meetings held on February 17, 2022, recommended a final cash dividend at 17.5 per cent i.e. Rs1.75 per share of Rs10 each for the year ended December 31, 2021. This in an addition to the 12.5 per cent interim dividend already paid in 2021.

    READ MORE: Engro Corp declares over 19% growth in annual profit

    The Net Mark-up Income / interest income of the bank fell to Rs26.26 billion for the year ended December 31, 2021 as compared with Rs28.14 billion in the preceding year.

    Total non mark-up / interest income also eased to Rs11.12 billion from Rs12.8 billion.

    READ MORE: HUBCO declares 25% decline in half-year profit

    The total income of the bank came down to Rs37.39 billion for the year ended December 31, 2021 as compared with Rs40.94 billion in the preceding year.

    The operating expenses of the banks were flat at Rs11.54 billion as compared with Rs11.87 billion. The bank has shown provisioning of Rs494 million for the year under review as against provisioning and write offs to the tune of Rs4.94 billion in the preceding year.

  • Allied Bank’s annual profit declines to Rs17.50 billion

    Allied Bank’s annual profit declines to Rs17.50 billion

    KARACHI: Allied Bank of Pakistan (ABL) on Thursday announced a 4.75 per cent decline in annual profit to Rs17.50 billion for the year 2021 as compared with Rs18.37 billion in the preceding year.

    According to financial results received by the Pakistan Stock Exchange (PSX), the earnings per share of the bank also fell to Rs15.29 for the year ended December 31, 2021 as compared with Rs16.05.

    The board of directors of Allied Bank met on February 17, 2022 and recommended a final cash dividend for the year ended December 31, 2021 at Rs2 per share i.e. 20 per cent. This is in addition to interim dividend already paid at Rs6 per share i.e. 60 per cent.

    Net mark-up and interest income of ABL came down to Rs45.56 billion for the year ended December 31, 2021 as compared with Rs48.39 billion.

    Non mark-up / interest income of the bank, however, posted growth to Rs16.76 billion for the year under review as compared with Rs13.44 billion in the preceding year.

    Total income of Allied Bank was flat at Rs62.32 billion for the year ended December 31, 2021 as compared with Rs61.84 billion in the last year.

    Operating expenses of the bank increased to Rs33.68 billion as compared with Rs30.28 billion.

  • Engro Corp declares over 19% growth in annual profit

    Engro Corp declares over 19% growth in annual profit

    KARACHI: Engro Corporation (PSX: ENGRO) on Thursday announced 19.27 per cent growth in profit after tax for the year 2021.

    According to financial results submitted to the Pakistan Stock Exchange (PSX), the company has declared profit after tax at Rs52.61 billion for the year 2021 as compared with Rs44.11 billion in the last year.

    During 2021, Engro Corporation’s standalone revenue increased from Rs 15.00 billion in 2020 to Rs 20.68 billion in 2021, exhibiting a substantial growth of 38 per cent. Higher revenue was primarily due to higher dividends received from Engro Polymer & Chemicals Limited (EPCL) and Engro Fertilizers Limited (EFERT), which in turn were driven by strong underlying business performance. Resultantly, the company achieved a 14 per cent higher PAT of Rs 18.52 billion in 2021 against Rs 16.30 billion in 2020, translating into an EPS of Rs 32.14 per share (2020: Rs 28.29 per share).

    On a consolidated basis, Engro Corporation’s revenue grew by 25 per cent to Rs 311.59 billion in 2021 from Rs 248.82 billion in 2020. The Company posted a PAT of Rs 52.61 billion in 2021, which is 19 per cent higher than Rs 44.11 billion in 2020, translating to an EPS of Rs 48.50 per share (2020: Rs 43.57 per share).

    Engro Corporation announced a final cash dividend of Rs 1/- per share for the year. This is in addition to the Rs 24/- per share dividend that has already been announced during the financial year, bringing the cumulative payout to Rs 25/- per share.

    Portfolio Performance Review

    Fertilizers: Domestic market witnessed strong agricultural sector performance in 2021. Resultantly, EFERT achieved a historical milestone of highest ever urea sales of 2,295 KT in 2021 against 2,057 KT in 2020. Due to the turnaround of Base and Enven plant, urea production during the year reduced from 2,264 KT in 2020 to 2,105 KT in 2021.

    Phosphates sales stood at 366 KT whereby a steep rise in international prices dampened local demand. On an overall basis, EFERT achieved its highest ever PAT of Rs 21.09 billion in 2021, demonstrating a growth of 16 per cent from 18.13 billion in 2020.

    Petrochemicals: EPCL announced commercial operations of its new PVC plant and VCM debottlenecking during March and June 2021, respectively. PVC capacity increased by 100 KT to 295 KT per annum while VCM capacity increased by 50 KT to 245 KT per annum. These initiatives enabled EPCL to achieve record domestic PVC sales of 207 KT alongside highest ever PVC exports of 19 KT translating into an export value of USD 28 million. During the year, international PVC prices increased significantly due to supply disruptions, however, supplies to domestic PVC downstream market continued uninterrupted due to EPCL’s steady production.

    EPCL recorded sales of Rs 70.02 billion as compared to Rs 35.33 billion in 2020. PAT increased from Rs 5.73 billion in 2020 to Rs 15.06 billion in 2021 showing an increase of 163 per cent attributable to increased volumetric sales, efficient operations and higher international prices.

    Telecommunication Infrastructure: During the year, Engro Corporation formed a dedicated platform for connectivity and telecom infrastructure initiatives by the name of Engro Connect (Pvt.) Limited (EConnect). EConnect is a wholly owned subsidiary of Engro and now holds complete ownership of Engro Enfrashare (Pvt.) Limited (Enfrashare), which is Pakistan’s largest independent telecom tower company.

    Enfrashare continued to expand its national footprint and achieved a scale of 2,246 operational B2S towers with a 1.1x tenancy ratio while catering to all four Mobile Network Operators in Pakistan. Enfrashare built over 75 per cent of the total new B2S towers that were deployed in the country during the year 2021. This increase in the portfolio led to a growth of 3x in the revenue in comparison with last year. The business has secured orders to reach a scale of 3,300+ sites by the end of 2022.

    Foods & Rice: FrieslandCampina Engro Pakistan Limited (FCEPL) demonstrated a topline growth of 18 per cent, recording sales of Rs 52.09 billion as compared to Rs 44.16 billion in 2020. The gross margin increased to 16 per cent from 12 per cent last year, translating into an increase in PAT from Rs 0.18 billion in 2020 to Rs 1.80 billion in 2021.

    The business demonstrated an overall increase of 10x in the profitability driven by cost saving initiatives, leveraging e-commerce channels, improved reach / route to markets, increased marketing spend and market penetration to enhance brand equity.

    Engro Eximp Agriproducts (EEAP) surpassed industry growth of 16 per cent in the brown rice segment and recorded 21 per cent growth versus last year. As a key contributor to foreign reserves, the business continued its focus towards exports, generating a revenue of USD 18.8 million through international sale of 24 KT rice against 28 KT last year. Given the supply chain constraints in the international market, the business pivoted its supply to the local market and increased domestic sales by 39 per cent to 13 KT during 2021.

    Energy & Power: Sindh Engro Coal Mining Company (SECMC) supplied 3.8 million tons of coal to Engro Powergen Thar Limited (EPTL) during the year. EPTL achieved an availability of 83 per cent with a load factor of 80 per cent and dispatched 4,225 GwH to the national grid during the year.

    The Phase II expansion of SECMC’s mine to 7.6 million tons per annum is underway with 71 per cent of the overburden removed from the site. Phase III expansion of the mine to 12.2 million tons per annum has also been approved during the year.

    Engro Powergen Qadirpur Limited (EPQL) plant dispatched a Net Electrical Output of 851 GwH to the national grid with a load factor of 46 per cent compared to 30 per cent last year due to higher offtake from the Power Purchaser. EPQL’s revenue increased by 26 per cent due to higher dispatch and load factor which was offset by the absence of long-term debt servicing component. The business posted a PAT of Rs 1.59 billion for the current period as compared to Rs 2.08 billion for 2020.

    Terminals: Engro Elengy Terminal (Pvt.) Limited (EETL) successfully completed Pakistan’s first-ever Dry-Docking activity of FSRU Exquisite at Qatar dockyard with minimum outage during the switchover between the two FSRUs. During the Dry-Docking period, FSRU Sequoia enabled gas supply continuity ensuring national energy security.

    The LNG terminal handled 72 vessels during 2021, in line with last year, delivering 216.2 bcf re-gasified LNG into the SSGC network with an availability factor of 96.5 per cent. The terminal contributed 15 per cent towards Pakistan’s total gas supply during the year.

    The chemicals terminal throughput volumes normalized to 1,280 KT against 1,142 KT last year which was offset by lower LPG volumes. Overall, profitability of both the LNG and chemical storage terminals business remained stable during 2021.

  • HUBCO declares 25% decline in half-year profit

    HUBCO declares 25% decline in half-year profit

    KARACHI: Hub Power Company Limited (HUBCO) (PSX: HUBC on Tuesday declared 25 per cent decline in net profit for the half year ended December 31, 2021.

    According to consolidated financial results submitted to the Pakistan Stock Exchange (PSX), the profit after tax of the company fell to Rs12.72 billion during July – December 2021 as compared with Rs16.89 billion in the corresponding period of the last fiscal year.

    READ MORE: Kamran Kamal appointed HUBCO chief

    HUBCO is the first and largest Independent Power Producer (IPP) in the country with a combined installed power generation capacity of 2920 MW, according to company’s website.

    The board of directors of the company in a meeting held on February 15, 2022 reviewed and approved the financial results for the period December 31, 2021.

    The board has not recommended any cash dividend, bonus shares or right shares for the period.

    The fall in profit may be attributed to slump in share of profit from associations and joint venture, which declined to Rs830.74 million for the half year ended December 31, 2021 as compared with Rs7.6 billion in the corresponding period of the last fiscal year.

    According to the consolidated results, the total turnover of the company was at Rs46.27 billion for the period under review as compared with Rs26.79 billion in the same period of the last fiscal year.

    The gross profit of the company was flat at Rs15.81 billion for July – December 2021 as compared with Rs15.87 billion in the corresponding period of the last fiscal year.

    Operating expenses of the company fell significantly to Rs47.48 million for the half year ended December 31, 2021 as compared with Rs236.71 million in the same period of the last year.

    HUBCO announced Rs9.41 as earnings per share for the period July – December 2021 as compared with Rs12.60 EPS in the same period of the last year.

  • PTCL registers eight-year high revenue growth

    PTCL registers eight-year high revenue growth

    ISLAMABAD: Pakistan Telecommunication Company Limited (PTCL), posted seven per cent growth in its revenues for the year 2021, which is eight-year high or the highest revenue growth since 2013.

    The revenue growth may be attributed to a robust commercial strategy which cements its market standing.

    According to a statement issued on Friday, the company announced its annual financial results for the year 2021 at its Board of Directors’ meeting on February 10, 2022.

    READ MORE: PTCL Group wins GDEIB award in five categories

    PTCL Group

    PTCL Group posted a revenue of Rs 138 billion in the year 2021 which is 6.3% higher as compared to 2020.

    PTCL continued its growth trajectory by posting 7% YoY revenue growth which is the highest since 2013.

    PTML (Ufone) also posted a revenue growth of 4.3% despite stiff competition in the market.

    U Bank continued its growth momentum and has achieved 8.4% growth in revenue.

    PTCL Group has posted a net profit of Rs 2.6 billion.

    READ MORE: PTCL registers 7.3% revenue growth for nine months

    PTCL:

    PTCL continued its strong performance throughout 2021. PTCL’s revenue of Rs 77 billion for the year 2021 is 7% higher than 2020, mainly driven by Broadband and Corporate & Wholesale business segments.

    PTCL registered highest Fixed broadband Sales and Net Adds in 2021 since 2015, which allowed PTCL to grow in the broadband business segment.

    PTCL is the fastest growing Fiber-To-The-Home (FTTH) operator with highest Net adds within FTTH market in 2021.

    The company has posted operating profit of Rs 4.2 billion, which is higher by 21% compared to 2020.

    Net profit of Rs 6.9 billion is higher by 14% as compared to last year.

    The company is continuously upgrading its existing infrastructure and network, besides expanding FTTH across the country to offer seamless connectivity for greater customer experience. Prompt deployment of FTTH and strong performance in Corporate and Wholesale segments are the cornerstone in PTCL’s topline growth, which along with focus on cost optimization program, has significantly increased the company’s profitability.

    READ MORE: PTCL, Dell to launch Azure Services in Pakistan

    PTCL Consumer Business:

    During 2021, the company’s Fixed Broadband business grew by 11.7% YoY, whereas PTCL IPTV segment also grew by 13% YoY. Within broadband business, PTCL Flash Fiber, the company’s groundbreaking FTTH service, showed a tremendous growth of 61.5%, whereas PTCL CharJi /Wireless Broadband Segment grew by 16.5%. Voice revenue stream has declined on account of lower voice traffic and continued conversion of customers to Over-The-Top (OTT) services.

    Business Services:

    Business services segment continued its momentum sustaining market leadership in IP Bandwidth, Cloud, Data Center, and other ICT services segments. PTCL’s Enterprise business grew by 10% as compared to last year, while Carrier and Wholesale business continued its growth momentum and achieved 9% overall revenue growth. Similarly, international business growth was recorded at 4%.

    Being the national telecom carrier and connectivity backbone in Pakistan, PTCL Group strives to provide innovative solutions to accelerate growth for a ‘Digital Pakistan’ through robust telecommunication infrastructure and a diverse portfolio of services with enhanced customer experience.

    PTML – Ufone:

    READ MORE: Ufone signs Rs21 billion agreement for 4G spectrum

    Ufone’s financial year 2021 ended on a high note despite challenging operating environment

    Ufone revenues grew by 4.3% as compared to 2020 mainly driven by growth in data services

    Ufone acquired additional 9 MHz 4G spectrum in the 1800 MHz Band in NGMS spectrum auction in September 2021, fulfilling its commitment to provide enhanced customer experience through quality services across Pakistan.

    Post spectrum auction, significant network modernization activity was carried out in Q4 2021 that has allowed Ufone to significantly improve its share of the 4G net adds within the industry.

    PTCL Group is playing a key role in supporting Universal Service Fund’s (USF) efforts for the development of telecommunication services in un-served and under-served areas of the country. This year, PTCL was awarded seven USF optical fiber projects for far flung areas of Punjab, KPK and Sindh provinces. Under these projects, PTCL will deploy a total of 4,690 KM optical fiber. Ufone was awarded five USF projects under the Broadband for Sustainable Development (BSD) umbrella during 2021 for the unserved and under-served areas of Baluchistan which involve deployment and network upgrade of 205 BTS sites.

    UBank:

    UBank, the microfinance and branchless banking subsidiary of PTCL, continued its growth trajectory and has achieved 8.4% growth in its revenue over last year by increasing its advances portfolio. The balance sheet footing of the bank crossed the Rs 100 billion mark as the bank diversified its funding streams and asset classes while ensuring positive bottom-line impact.

    Major strategic initiatives undertaken by the bank include venturing into the low-cost housing loans, international remittance, and the launch of Islamic Banking. The bank intends to invest in state-of-the-art technology to become a leading digital banking player. With the core mission of microfinance at its heart, the business model of the bank is evolving to capture new segments and customer classes to include more of Pakistan into the banking net and further its ambition of financial and social inclusion.

    Corporate Social Responsibility (CSR):

    During 2021, PTCL ran the second cohort of its flagship internship program ‘Justuju’ for Persons with Disabilities (PWDs) in collaboration with ‘Network of Organizations Working with Persons with Disabilities, Pakistan’ (NOWPDP).

    PTCL provided internet connectivity to 11 campuses of the Pehli Kiran Schools Islamabad in an effort to support the Education Sector in Pakistan. PTCL Razakaar and the company’s employee volunteer force undertook a comprehensive clothes donation drive in partnership with Akhuwat Clothes Bank for deserving communities across Pakistan.

    Shaukat Khanum Memorial Cancer Hospital and Research Centre (SKMCH&RC) recognized the PTCL Razakaar Trust for its generous donation towards augmenting COVID-19 testing facilities of the center during the peak of the pandemic in 2020.

  • PSO posts massive growth of 245% in six months

    PSO posts massive growth of 245% in six months

    KARACHI: Pakistan State Oil Company Limited (PSX: PSO) has declared massive growth of 245 per cent in net profit for the six months ended December 31, 2021.

    According to financial results submitted to the Pakistan Stock Exchange (PSX) on Friday, the company declared Rs31.92 as profit after tax for the six month period ended December 31, 2021 as compared with Rs9.26 billion in the same half of the last year.

    READ MORE: PSO registers 120% growth in quarterly profits

    The company declared Rs68.20 as earnings per share (EPS) for the period under review as compared with EPS of Rs19.93 in the same period of the last year.

    The board of management of the company in the meeting held on Friday and recommended a ‘nil’ dividend.

    READ MORE: PSO’s prudent planning helps considerable savings

    Net sales of the company surged to Rs998.77 billion for the half year ended December 31, 2021 as compared with Rs580.98 billion in the corresponding half of the last year.

    The gross profit of the company was at Rs50.16 billion as compared with Rs21.38 billion.

    Administrative costs increased to Rs1.81 billion during the six month period ended December 31, 2021 as compared with Rs1.72 billion in the same period of the last year.

    READ MORE: PSO posts highest ever annual net profit of Rs29.1bn

  • Fire incidents at two facilities of Service Industries

    Fire incidents at two facilities of Service Industries

    KARACHI: Service Industries Limited (PSX: SRVI) on Friday reported fire incidents at a factory located in Muridke and godowns in Lahore.

    In a communication sent to Pakistan Stock Exchange (PSX), Service Industries Limited stated: “A fire broke out at the factory premises of the company at Muridke on February 09, 2022 which was brought under control. It, however, has caused damage to the raw material store and some finished goods inventory. There has been no damage to the production facilities.

    “The insurance companies are assessing the extent of loss caused by the fire break out. Since the above assets are fully insured, the management does not foresee any significant impact on the profitability of the company.”

    The company reported another fire incident in Lahore.

    “Further, a fire incident has also occurred at one of the rented finished goods godowns of the company located at Multan Road, Lahore on February 10, 2022 which was also brought under control. It however has caused damage to the finished goods inventory.

    “The company’s finished goods inventories are fully insured and the loss is being assessed by insurance companies. Accordingly, the management does not foresee any significant impact on the profitability of the company.

  • K-Electric to raise Rs12 billion through Sukuk

    K-Electric to raise Rs12 billion through Sukuk

    KARACHI: K-Electric Limited, the leading power generation and supply company, has announced plans to raise Rs12 billion through the issuance of Sukuk.

    (more…)
  • UBL gets DD approval to acquire Telenor Microfinance Bank

    UBL gets DD approval to acquire Telenor Microfinance Bank

    KARACHI: United Bank Limited (UBL) has been granted regulatory approval to commence due diligence (DD) of Telenor Microfinance Bank Limited.

    In a communication shared with the Pakistan Stock Exchange (PSX) on Tuesday, UBL said that the State Bank of Pakistan (SBP) had granted in-principle approval to UBL to commence the due diligence of Telenor Microfinance Bank Limited (TMB) for proposed acquisition of 55 per cent sponsor shares in TMB, currency held by Telenor Pakistan BV (operating under the Easypaisa brand name), subject to the compliance with the applicable laws, rules, regulations.

    It was second approval granted by the SBP in less than two weeks to UBL to initiate due diligence in two different acquisitions.

    On January 26, 2022, the bank informed the PSX that that SBP had granted in-principle approval to UBL to commence the due diligence of Samba Bank Limited in respect of acquisition of 84.51 per cent shareholding of SBL, currently held by Saudi National Bank.

  • Pakistan Oilfields declares Rs10.92 billion half year profit

    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.