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Category: Corporate

  • Bank Alfalah announces 21% growth in half year profit

    Bank Alfalah announces 21% growth in half year profit

    KARACHI: Bank Alfalah Limited on Wednesday announced 21 per cent growth in earnings for the half year ended June 30, 2021.

    The net profit of the bank was at Rs7.02 billion for the first half as compared with net profit of Rs5.78 billion in the same half of the last year.

    The bank declared Rs3.94 as earnings per share (EPS) for the first half of 2021 as compared with the EPS of Rs3.25 in the same half of the last year.

    Analysts at Arif Habib Limited said that massive reductions in provisioning and quarterly rise in interest earned contributed to the profitability during the quarter.

    The bank announced a dividend of PKR 2.00/share.

    Net Interest Income of the bank settled at PKR 21.9 billion, decreasing 6 per cent YoY during 1HCY21 while rising 13 per cent QoQ. This quarterly growth could be attributed to volumetric growth.

    NFI increased 15 per cent YoY mainly on the back of Fee income which rose by 35 per cent YoY and Dividend income which increased by 79 per cent YoY. Quarterly jump was on account of 12 per cent jump in fee income and 50 per cent uptick in FX/derivatives income.

    Provisioning expenses for the bank came in at PKR 934 million during 2QCY21 taking total provisioning expenses to PKR 1.15bn during 1HCY21. Overall there has been a 76 per cent YoY reduction in provisioning, which could be due to improved outlook on the asset quality following the rebound in economic activity across the country leading to reversal in general provisioning. However this quarter saw a 4x jump QoQ which was on account of a provisioning charge against an Oil Marketing Company’s exposure as per management.

    Operating expenses rose 11 per cent YoY taking CIR to 58 per cent for 1HCY21 against 52 per cent same period last year (SPLY).

    Effective tax rate clocked in at 39 per cent for 1HCY21 vis-à-vis 42 per cent SPLY.

    SBP issues instructions on third party sales
  • Engro enhances telecom investment to Rs21.5 billion

    Engro enhances telecom investment to Rs21.5 billion

    KARACHI: Engro Corporation has announced to enhance its total equity investment in the telecom infrastructure vertical to Rs21.5 billion.

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  • Engro Corp registers 84% net profit in first half

    Engro Corp registers 84% net profit in first half

    Engro Corporation Limited on Tuesday declared 84 per cent increase in after tax profit for the half ended June 30, 2021. The company announced Rs29.11 billion as net profit for first half (January – June) 2021 as compared with Rs15.8 billion in the same half of the last year.

    Engro delivered a strong operational performance in 1H 2021 as its consolidated revenue grew by 30% from PKR 107,163 million in 1H 2020 to PKR 139,319 million in 1H 2021. The Company recorded a consolidated Profit After Tax (PAT) of PKR 29,111 million compared to PKR 15,529 million for the similar period last year.

    Profit attributable to the owners stood at PKR 17,053 million compared to PKR 9,059 million for the prior period, resulting in an Earnings per Share (EPS) of PKR 29.60 compared to PKR 15.73. The growth in bottom line is primarily attributable to increased profits posted by Engro Fertilizers and Engro Polymer & Chemicals.

    On a standalone basis, the Company posted a PAT of PKR 9,683 million against PKR 4,858 million for the same period last year, translating into an EPS of PKR 16.81 per share. The Company announced an interim cash dividend of PKR 7 per share for the second quarter.

    Fertilizers: The country has witnessed a robust agronomic demand in 1H 2021 enabled by favorable farm economics, better farm output prices and enhanced support pricing. Engro Fertilizers (“EFert”) produced 1,070 KT of urea vs. 1,136 KT for the comparative period; the slight decrease in production was on account of a planned turnaround in one of the Plants in Q1.  EFert recorded half yearly urea sales of 1,115 KT vs. 847 KT and phosphate sales of 105 KT vs. 119 KT during the same period last year. As a result, the PAT for EFert stood at PKR 10,509 million for 1H 2021 as compared to PKR 4,457 million in the same period last year.

    Petrochemicals: The first half of the year experienced substantially higher international PVC prices, which rose to an unprecedented level of USD 1,670/T in Q1 2021 due to global supply limitations and increased freight costs. Subsequently, in Q2, the price reduced to USD 1,345/T and was still significantly higher from the historical price levels. Engro Polymer and Chemicals Limited (“EPCL”) announced commercial operations of the new PVC Plant on March 1, 2021, increasing the capacity to 295,000 MT per annum and commercial operations of the new 50 KT VCM de-bottlenecking capacity on June 25, 2021, thus, increasing its capacity to 245,000 MT per annum.

    In 1H 2021, EPCL recorded a revenue of PKR 30,496 million as compared to PKR 12,874 million in the same period last year. EPCL witnessed its highest ever 6-month profit on account of increased volumetric sales, efficient operations, and higher international prices; Engro Polymer posted a PAT of PKR 7,265 million compared to a PAT of PKR 223 million for the same period last year.

    Connectivity: Engro continued to expand its footprint in the Connectivity vertical through Engro Enfrashare, which has now become the country’s largest Independent Tower Company (with 46% market share) in terms of operational sites, serving all Mobile Network Operators in Pakistan. As of June 2021, Enfrashare held a portfolio size of 1,817 operational sites and 1,963 tenancies, translating into a tenancy ratio of 1.08x, with a market share of 46%; an increase of 5% from 41% share maintained in 2020.

    Energy & Power: Sindh Engro Coal Mining Company (“SECMC”) supplied ~2 million tons of coal to Engro Powergen Thar (“EPTL”) during initial half of the year. EPTL remained fully operational and achieved 81% availability with a load factor of 78% and a dispatch of 2,052 GwH to the national grid during the first half of the year. SECMC’s expansion work to enhance its output to 7.6 million tons per annum is in progress.

    Engro Powergen Qadirpur Limited (“EPQL”) operates on permeate gas and is currently facing gas curtailment from the Qadirpur gas field as it continues to deplete. To make up for this shortfall, EPQL’s Plant has been made available on mixed mode. The Plant dispatched a net electrical output of 394 GwH to the national grid, with a load factor of 43% compared to 28.4% during similar period last year. The business posted a PAT of PKR 905 million for the current period as compared to PKR 1,310 million for Q1 2020, which is mainly attributable to the retirement of debt component.

    Terminals: Engro’s Terminal businesses recorded healthy profits in the first half of the year. The LNG terminal handled 35 cargoes, delivering 106 billion cubic feet (bcf) re-gasified LNG to the SSGC network. Moreover, the terminal also successfully completed the berthing and startup of FSRU Sequoia to manage Pakistan’s first ever dry-docking activity. The advent of Sequoia has ensured gas availability for the country while dry-docking of FSRU Exquisite continues at Qatar dockyard.

    The chemicals Terminal had an actual throughput of 638 KT vs. 583 KT during the similar period last year. The increase was primarily observed in chemical volumes, offset by lower LPG handling.

  • PSO posts highest ever annual net profit of Rs29.1bn

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

    KARACHI: Pakistan State Oil (PSO) has announced a record breaking gross revenue of Rs1.4 trillion and highest ever profit after tax of Rs29.1 billion for the financial year 2020-2021 (FY21) after a loss after tax of Rs6.5 billion in the preceding year.

    The net profit translated into a healthy earning per share of Rs62.07 vs. loss per share of Rs13.77 in the preceding fiscal year. 

    The announcement came after PSO’s Board of Management (BoM) reviewed the performance of the company together with its subsidiary Pakistan Refinery Limited (PRL) for the financial year 2020-21, ended on June 30, 2021, during the meeting held on August 23, 2021 in Islamabad. 

    Based on the outstanding financial and operational performance of the company, the Board of Management has announced a final dividend of Rs 10/- per share (100 per cent) which is in addition to the interim cash dividend of Rs 5/- per share (50 per cent) for financial year 2020-21.

    The dividend for the financial year stands at Rs 15/- per share (150 per cent).

    PRL, a subsidiary of PSO, also reported a profit after tax of Rs 0.94 billion during the year compared to a loss of Rs 7.6 billion in the previous year. On a consolidated basis, the group achieved a profit after tax of Rs 29.6 billion in FY21 compared to loss after tax of Rs 14.8 billion in FY20. 

    The board noted that these results have demonstrated PSO’s agility and strength across its diverse portfolio despite the challenging economic scenario and recurrent waves of the pandemic. PSO is leading the market by a large margin, delivering a phenomenal performance over and above the industry average.

    The company exhibited an outstanding growth of 21.9 per cent in liquid fuels over last year with volumes reaching 9.2 million tons, attaining a market share of 46.3 per cent in FY21 compared to 44.3 per cent in FY20. PSO also achieved its highest ever volume of 7.6 million tons in the white oil segment despite the shrinking jet fuel and kerosene oil industry, with a market share of 45.2 per cent in FY21 vs. 44 per cent in FY20 i.e. a growth of 120 basis points (bps). 

    PSO set an all-time high record in Motor Gasoline (MoGas) achieving volumes of 3.5 million tons, an increase of 21.2 per cent from FY20, translating into market share of 41.3 per cent vs. 38.7 per cent last year – an increase of 260 bps.

    The company made a strong closing in Hi-Cetane Diesel as well, achieving a volumetric growth of 21.1 per cent vs. industry growth of 17.5 per cent, translating into volumes of 3.7 million tons in FY21. The volumes contributed in regaining market share, bringing it to 47.2 per cent vs. 45.8 per cent in the preceding year i.e. an increase of 140 bps. PSO attained a volumetric growth of 53.2 per cent in black oil with volumes of 1.7 million tons and a market share of 51.7 per cent vs. 46 per cent in FY20. 

    In line with GOP’s clean and green initiative, PSO was the first OMC to upgrade the country’s fuel standard from Euro 2 to Euro 5. The launch of Hi-Octane 97 Euro 5, Premier Euro 5 and Hi-Cetane Diesel Euro 5 proved to be game changers in the industry, bolstering customer’s confidence in PSO’s products.

    Building on its value creation model, the company prioritized high margin products i.e. High-Octane 97 Euro 5 and lubricants adding significant revenues with a volumetric growth of 177.6 per cent and 11.3 per cent respectively compared to last year. PSO’s first EV charging facility – Electro was also launched in Islamabad.

    This performance is also a strong indicator of the change and transformation going on within PSO. With a focus on innovation and technology, PSO continued to enhance its digital capabilities to drive growth and enhance efficiency.

    The company made significant strides on its journey of digital transformation with the launch of Pakistan’s first digitally integrated oil storage & dispatch terminal in Karachi. PSO also became the first public sector entity to launch e-procurement through SAP Ariba. Other automation initiatives included the launch of PSO Sahulat – an online order management system for dealers, Automated Queue Management System for tank-lorries and internal applications for fund management and employees leave management. 

    The company fast tracked infrastructural projects to gain operational efficiency. 174,000 tons of new and rehabilitated storages were added which significantly increase the number of day’s cover of petroleum products. Pipeline links have been completed to connect operational locations with White Oil Pipeline to make product movement safer and more efficient. 71 new vision retail outlets were also added to the company’s footprint. 

    Living up to its promise of keeping the wheels of the nation’s economy in motion and ensuring a seamless supply of fuel, the company imported 4.9 million tons of white oil products, an all-time high since the inception of the company. PSO has also played a pivotal role in the LNG sector. The company entered into another agreement with Qatar Petroleum under G2G arrangement to supply an additional 3 million tons of LNG for a period of 10 years. This contract shall add additional volumes to an already executed 15-year long term sales purchase agreement (SPA), making PSO the largest supplier of LNG in the country with a supply base of 6.75 million tons per annum.

    With the burden of circular debt still large, to improve its balance sheet further, PSO recovered Rs 25.8 billion from the Power Sector along with late payment surcharge income. Reduction in finance cost by Rs. 3.2 billion. (24 per cent) further complemented the profitability of the company.

    PSO issues clarification LNG purchase
  • Airlift secures $85 million in series ‘B’ financing

    Airlift secures $85 million in series ‘B’ financing

    LAHORE: Airlift Technologies on Wednesday announced n $85 million Series ‘B’ financing led by some of the most iconic investors on the globe.

    The financing marks the largest in the MENA region, co-led by Josh Buckley (Buckley Ventures) and Harry Stebbings (20VC). Other major participants included Sam Altman (ex-President YCombinator), Biz Stone (Co-founder at Twitter / Medium), Jeffrey Katzenberg (ex-CEO, Disney), Taavet Hinrikus (Founder/CEO at TransferWise), and Seve Pagliuca (Co-Chairman, Bain Capital).

    The financing is about twice the size of the largest private company IPO in Pakistan’s history and the highest in the MENA region, bringing a number of implications for the country.

    Airlift has set a new precedent that will bring world-class investors to invest in Pakistan. It will garner confidence that great technology and consumer products can be built in Pakistan, and that this region of the world has some of the best talents.

    Airlift Express alone with its series B funding of $85 million has added 5 per cent to Pakistan’s FDI for the Fiscal year 2021. This financing round lays the foundations of a new dawn in Pakistan where technology startups alone can contribute to more than 10 per cent of FDI in the upcoming years.

    The team at Airlift is on a mission to enable self-empowerment in the region by reducing individual dependency on others through safe, reliable, and affordable logistics solutions.

    Airlift is building a platform for consumers, drivers, and small business owners to move consumer goods. With an agile supply chain, Airlift is best positioned to succeed and eventually create thousands of jobs within Pakistan.

    Airlift is on a mission to create 200,000 jobs in Pakistan within the next five years.

    Pakistan’s diverse talent base puts Pakistan on the global map – The team at Airlift is a true representation of the potential that resides within the country.

    The team is an embodiment of relentlessness, hustle, and extreme ownership, which has built one of

    Pakistan’s largest technology companies. This financing puts Pakistan on the global roadmap for technology entrepreneurship.

    Usman Gul, Co-Founder and CEO of Airlift said, “A year ago, Airlift halted operations on the transit service and diversified into last-mile grocery delivery.

    “Today, our team closed $85m in Series B financing to scale our delivery platform across continents. With this financing, we as Pakistanis must return to where we started from — fighting against the odds and staying true to our core values of hustle, teamwork, resourcefulness, and bias to action. If this is the journey of a thousand miles, we have taken only the first step.”

    With the Series B funding, Airlift today, as a Pakistani-born startup is committed more than ever to revolutionize the retail industry by leveraging technology, and empower millions of people!

  • Meezan Bank declares Rs12.6 billion net profit in 1HCY21

    Meezan Bank declares Rs12.6 billion net profit in 1HCY21

    KARACHI: Meezan Bank Limited has reported a significant increase in its net profit, reaching Rs 12.6 billion for the first half of the calendar year 2021 (January–June). This reflects an 8% growth compared to the Rs 11.7 billion net profit recorded during the same period last year, according to the bank’s financial results announced on Thursday.

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  • MCB Bank’s 2QCY21 results above market expectations

    MCB Bank’s 2QCY21 results above market expectations

    KARACHI: MCB Bank on Wednesday announced a profit after tax of Rs7.9 billion for second quarter ended June 30, 2021.

    Analysts at Khadi Ali Shah Bukhari (KASB) said that the result is above estimates and street consensus.

    The deviation is mainly on account of recognition of provisioning reversal worth Rs1.8 billion during the quarter. The result was accompanied with an interim cash dividend of Rs5.0 per share.

    MCB’s profitability increased 12 per cent YoY during second quarter April – June of 2021 attributed to provisioning reversal.

    However, NII declined by 17 per cent YoY as the policy rate remained unchanged during the period under review.

    NFI increased by 46 per cent YoY in 2QCY21 as lockdown restrictions were eased off and economic activity picked up.

    Major support came from 17 per cent YoY jump in fee income that clocked in at PKR 3.0 billion as against PKR 2.5 billion. Additionally, other income increased to PKR 661mn as opposed to PKR 61mn in corresponding period last year.

    Notably, the bank recognized a provisioning reversal of PKR 1.8 billion that resulted in expansion in bottom-line. We expect a similar momentum in coming quarters with lower risk of provisioning as business activity has normalized.

    The bank recorded higher effective tax rate of 45 per cent which we believe is attributed to new taxation measures introduced in Budget FY22. This is in-line with industry’s ETR as banks have shown prudence.

    Additionally, C/I improved to 43 per cent as opposed to 45 per cent in corresponding period last year that lent support to MCB’s profitability.

    We have an Outperform stance on the stock and our target price stands at PKR 220/sh. The stock is trading at a forward P/B of 1.13x and offers a dividend yield of 12 per cent

  • Engro Fertilizers wins three awards

    Engro Fertilizers wins three awards

     KARACHI: Engro Fertilizers Limited has been recognized at the prestigious Pakistan Digital Awards 2021. The company received three key awards for “Most Innovative Fintech Solution Provider”, “Best Payment Technology” and “Best Banking Tech of the Year”.

    Faced with the challenges of COVID-19 pandemic, Engro Fertilizers was quick to adapt to the new normal and led the industry towards digitization in all respects, from customer and vendor support to digital payment solutions and virtual operations.

    This was the first time that the Company was participating at the Pakistan Digital Awards. Out of the 94 categories, it was able to bag three Best in Class awards at the ceremony.

    Receiving this award, Imran Ahmed, CFO of Engro Fertilizers Limited, shared: “The digitization journey that we embarked on a couple of years back has finally started to deliver results as we are now benefiting from improved availability of quality information and better control environment.

    “We are thrilled by this recognition that was in the face of stiff competition. This encourages us to redouble our efforts in leveraging digitization to deliver operational excellence and differentiated customer experiences in the days and years to come”.

    With “The Best Banking Tech of the Year” and “Best Payment Technology” award, Engro Fertilizers has been celebrated for setting new standards in the fertilizer industry through the launch of various innovative and automated financing solutions in engagement with its banking partners. It co-created Pakistan’s first-ever solution to electronically manage bank guarantees that will transform this banking process.

    The initiative has reduced ordering cycle, provided customers convenience by not requiring them to make a physical visit to the bank and enhanced corporate services. Further, the move towards paperless operations has resulted in a favorable impact on the environment, and ensured transparency and swiftness of transactions.

    In the “Most Innovative Fintech Data Solution Provider” category, the Company has been recognized for the group-wide implementation of new Enterprise Resource Planning (ERP) system OneSAP, which has been endorsed as Pakistan’s largest SAP S/4 HANA digital business transformation.

    By leveraging this technology, the Company was able to achieve the global benchmark in financial reporting by ensuring monthly closing within 24-hours. The OneSAP implementation has enabled the Company to manage business operations remotely with flexibility for the employees, reduced operational costs, and timely and accurate flow of financial information to the Management to facilitate timely decision making.

    Expressing his delight at winning the awards, Nadir Qureshi – CEO of Engro Fertilizers – said: “It is humbling for us to have received these awards in the face of incredibly tough and distinguished competition. Guided by the Board’s vision and persistent efforts of our team, we have been able to make a swift transition towards digital platforms to navigate the challenges of global pandemic.

    “By embracing digitization, we have improved business efficiency, customer service and set a precedent for others to follow in the industry. Going forward, we will InshAllah continue to lead the industry in setting new standards of digital excellence.”

  • ICI Pakistan Limited acquires NutriCo

    ICI Pakistan Limited acquires NutriCo

    KARACHI: ICI Pakistan Limited on Tuesday announced 51 per cent shareholding and making NutriCo Pakistan (Private) Limited its subsidiary.

    In a communication to Pakistan Stock Exchange (PSX), the company said that ICI Pakistan Limited had successfully completed the acquisition of 55,013 ordinary shares (equivalent to 11 per cent shareholding) of NutriCo Pakistan (Private) Limited.

    Following the acquisition, the total shareholding of ICI Pakistan Limited in NutriCo Pakistan (Private) Limited stands 51 per cent, making NutriCo Pakistan (Private) Limited a subsidiary of ICI Pakistan Limited.

  • SBP approves PIA Sukuk for SLR maintenance

    SBP approves PIA Sukuk for SLR maintenance

    KARACHI: The State Bank of Pakistan (SBP) on Monday approved Sukuk to be issued by Pakistan International Airlines Company Limited (PIACL) for the requirement of Statutory Liquidity Requirement (SLR).

    The SBP said that in terms of Government of Pakistan, Ministry of Finance notification S.R.O. 746(I)/2021 dated May 31, 2021, the privately placed Sukuk to be issued by Pakistan International Airlines Company Limited (PIACL) under the title of “PIA-Sukuk-I” shall be approved security for the maintenance of SLR under sub-section 1 of section 29 of the Banking Companies Ordinance, 1962.

    Further, SLR eligibility limit (i.e. 7 percent) on Public Sector Sukuk shall be applicable on PIA Sukuk-I in accordance with the provisions of the Circular referred above.

     The ministry of finance issued SRO 746 (I)/2021 dated May 31, 2021 to announce that privately placed Sukuk to be issued by PIACL up to Rs20 billion shall be guaranteed by the government of Pakistan and shall be approved security for the maintenance of liquid assets.