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Category: Corporate

  • Pakistan Refinery announces contraction in accumulative loss at Rs17.74 billion

    Pakistan Refinery announces contraction in accumulative loss at Rs17.74 billion

    KARACHI: Pakistan Refinery Limited (PRL) on Tuesday announced financial results for quarter ended March 31, 2021. The accumulated losses of the company contracted at Rs17.74 billion by March 31, 2021 as compared with loss of Rs18.36 billion by June 30, 2020.

    In addition, current liabilities of the company exceeded its current assets by Rs14.49 billion as March 31, 2021 as against Rs16.84 billion by June 30, 2020.

    The company ended the period with negative cash and cash equivalents amounting to Rs5.65 billion as against Rs10.19 billion on June 30, 2020.

    The company said: “These conditions may cast significant doubt on the company’s liability to continue as a going concern and the company may be unable to realize its assets and discharge its liabilities in the normal course of business.”

    The refinery further said that right issue of one ordinary share of every one share held amounting to Rs3.15 billion, announced in February 2020 to address negative equity and liquidity issues was completed during the period thereby increasing the share capital to Rs6.3 billion.

    “Further, by changing crude recipe and operational philosophy during the current financial year, company was able to produce IMO-2020 grade Marine Residual Fuel (MRF), a premium product and Euro-II High Speed Diesel for a certain period that enabled the company to earn additional revenues,” it said.

    However, sustainable production of above high premium products is tied with long term crude arrangements, it added.

    The company’s ability to produce Petrol (MS) 92, 95 and RON has resulted in saving of RON differential price adjustment on MS and also generated additional revenues to the company during the period.

    “All these efforts helped the company in earning profit after taxation of Rs621 million for nine-month period ended March 31, 2021 as compared with loss after tax of Rs6.77 billion in the same period of the last year.”

    The company said: “Based on the cumulative impact of factors mentioned above, the company believes that it will continue as a going concern and will be able to realize its assets and discharge its liabilities in the normal course of business.”

  • Philip Morris announces 100pc increase in after tax quarterly profit

    Philip Morris announces 100pc increase in after tax quarterly profit

    KARACHI: Philip Morris (Pakistan) Limited, makers of cigarettes in the country, has announced around 100 percent increase in net profit for the quarter ended March 31, 2021.

    According to financial results submitted to Pakistan Stock Exchange (PSX) on Tuesday, the profit after tax for the quarter ended March 31, 2021 increased to Rs718 million as compared with Rs361 million in the corresponding period of the last year.

    During the period ended March 31, 2021, the company’s domestic net turnover stood at Rs4.44 billion reflecting increase by 6 percent versus same period last year.

    Increase in Distribution & Marketing expenses showed commitment by the Company to continuously allocate the resources for Commercial initiatives which can earn the best returns. Further, we continue to find efficiencies in Administrative Expenses to ensure the increase remains under inflation.

    During the same period ended March 31, 2021, the company’s contribution to the National Exchequer, in the form of excise duty, sales tax and other government levies, stood at Rs7,089 million (higher by 23.3 percent compared to the same period last year) reflecting 61.1 percent of first quarter of 2021 Gross Turnover.

    Giving industry background, the company said that the lack of a level playing field is one of the key challenges for the legally compliant tax paying cigarette industry.

    In 2013, the share of non-tax paid illicit sector was 23 percent but due to sheer lack of enforcement, it has now captured almost 40 percent of the market.

    Significant and excessive excise increases over the past few years have widened the price gap between legal and non-tax-paid illicit cigarettes thus facilitating downtrading and contributing to the exponential growth of the illicit cigarette sector.

    Excessive excise duty increases of 93 percent on Value Tier brands (i.e. from Rs17/pack in April 2018 to Rs33/pack in June 2019) during Federal Budgets of September 2018 and June 2019 have stretched the price gap and non-tax paid illicit brands continue selling at below minimum price prescribed under tax laws i.e. Rs63/pack.

    Further countless tax-evading brands of cigarettes across the country are being sold as low as Rs25/pack (avg. illicit price is Rs38/pack). For reference: Total Tax/pack (Excise & Sales Tax) on value brands is Rs44/pack.

    The company said that it had support the introduction of Track and Trace system as it will be an effective tool to supplement enforcement efforts against tax evasion.

    However, since 2019, the Federal Board of Revenue (FBR) has made multiple attempts to implement the system but, till date no major progress has been made on this front.

  • PIA escapes financial losses in Airbus A320 crash

    PIA escapes financial losses in Airbus A320 crash

    KARACHI: Pakistan International Airlines (PIA) has escaped from any financial loss as a result of Airbus A-320 that was crashed on May 22, 2020 a claimed 97 lives, according to annual result for the period ended December 31, 2020.

    According to the report, the Airbus A-320 was crashed in an accident on May 22, 2020. The said aircraft was included in the fixed assets of the company as right of use asset (RoUA) in accordance with IFRS 16 ‘Leases’.

    “The management determined that there is no significant financial exposure to the company as a result of the above incident as the above aircraft was on dry lease from GE Capital Aviation Services (GECAS),” according to the report.

    “As per the agreement, insurance for the aircraft was claimed out by the company, however, the settlement of the insurance amount will be directly between the insurance company and GECAS with no significant financial exposure to the company,” it added.

    Accordingly, the company has derecognized the RoUA and its corresponding lease liability amounting to Rs155.77 million and Rs329.62 million respectively and the remaining balance (a gain of Rs173.85 million) is credited to statement of profit or loss on termination of lease, the report said.

    “Furthermore, the company [PIA] has obtained passenger and third party liability insurance under which all the affected families and third parties on ground were eligible a compensation from the insurance company and the company is not liable for an further claims,” it added.

    The background of the unfortunate accident revealed that Pakistan International Airlines (PIA) flight PK 8303 was a scheduled domestic flight from Alama Iqbal International Airport Lahore to Jinnah International Airport Karachi.

    On May 22, 2020, the Airbus A320 in use crashed in Model Colony, a densely populated residential area of Karachi a few kilometers from the runway, while on a second approach after a failed landing.

    Of the 91 passengers and eight crew on board the aircraft (99 total on board, 91 lost their lives and two passengers survived with injuries.

    Eight people on the ground were also injured in the accident, one of them later succumb to her injuries. The PIA management expressed deep sorrow and grief over tragic incident and stand firmly with the families of the deceased passengers.

    Immediately, Emergency Response Center (ERC) and Station Emergency Coordination Room (SECR) were activated and Emergency Response Planning (ERP) Volunteer as well as PIA scouts were deployed to provide all possible assistance to the grieving families.

  • Pak Suzuki posts sharp 285pc growth in first quarter

    Pak Suzuki posts sharp 285pc growth in first quarter

    KARACHI: Pak Suzuki Motors Company Limited on Thursday announced an unprecedented growth of 285 percent in gross profit to Rs2.21 billion during the first quarter (January – March) of 2021.

    The company declared the gross profit of Rs573 million in the same quarter of the last year.

    The sales of the company sharply grew to Rs36.1 billion for the quarter ended March 31, 2021 as compared with Rs17.74 billion in the same quarter of the last year.

    With the higher sales, the distribution and marketing expenses of the company also increased to Rs710 million during the quarter under review as compared with Rs320 million in the same quarter of the last year.

    The company declared profit from operations at Rs1.12 billion during January – March 2021 as compared with loss of Rs1.32 billion in the same quarter of the last year.

    The net profit of the company was at Rs778 million during first quarter of 2021 as compared with net loss of Rs941 million in the corresponding quarter of the last year.

    The company declared earnings per share at Rs9.45 for the period ended March 31, 2021 as compared with net loss of Rs941 million in the corresponding period of the last year.

  • Engro Corp announces Rs14.8 billion profit after tax in first quarter

    Engro Corp announces Rs14.8 billion profit after tax in first quarter

    KARACHI: Engro Corporation Limited has announced Rs14.8 billion profit after tax during first quarter (January – March) 2021 as compared with Rs5.9 billion in the same quarter of the last year, showing about 150 percent growth.

    According to a statement issued on Thursday, Engro’s consolidated revenue grew by 58 percent from Rs 44,977 million during Q1 2020 to Rs 70,866 million in Q1 2021.

    The Company posted a consolidated Profit After Tax (PAT) of Rs 14,779 million compared to Rs 5,940 million for the similar period last year.

    Profit attributable to the owners was recorded at Rs 8,337 million compared to Rs 3,317 million for the prior period, resulting in an Earnings per Share (EPS) of Rs 14.47 compared to Rs 5.76. This growth in the results is primarily attributable to the higher profitability reported by Engro Fertilizer and Engro Polymer & Chemicals.

    On a standalone basis, the Company posted a PAT of Rs 3,586 million against Rs 780 million for the same period last year, translating into an EPS of Rs 6.22 per share. The Company announced an interim cash dividend of Rs 12 per share for the first quarter.

    Financial Performance – Segmental Perspective:

    Fertilizers: Domestic market witnessed strong agricultural sector performance in Q1 as farm economics continued to improve, driven by better farm output prices and enhanced support pricing. The Company produced 523 KT of Urea vs. 572 KT for the comparative period due to a turnaround in one of the plants.  The Company delivered quarterly Urea sales of 582 KT vs. 169 KT and Phosphate sales of 74 KT vs. 36 KT during the same period last year. As a result, the PAT for the Company stood at Rs 5,741 million for Q1 2021 as compared to Rs 571 million in the same period last year.

    Petrochemicals: During Q1 2021, international prices of PVC rose to an unprecedented level of USD 1,670 per ton as the winter storm in the US drove multiple unplanned shutdowns and forced majority of the PVC capacity offline. Furthermore, the Company announced commercial operations of the new PVC plant on 1st March 2021, which increased the total capacity to 295,000 MT per annum.

    During Q1 2021, the Company recorded a revenue of Rs 15,671 million as compared to Rs 7,058 million in Q1 2020. With increased volumetric sales, efficient operations and higher international prices, the Company posted a PAT of Rs 4,143 million compared to a PAT of Rs 193 million for the same period last year. This is the highest quarterly profit ever achieved by Engro Polymer and Chemicals.

    Connectivity: Engro continued to invest and progress in its Connectivity vertical through Engro Enfrashare strengthening its footprint to a portfolio size of 1,577 operational sites (1,265 sites in 2020), while hosting 1,681 tenancies (1,362 tenancies in 2020) and catering to all Mobile Network Operators (MNOs) in Pakistan. This portfolio expansion has led to a significant increase in the market share as an Independent TowerCo from 41 percent in 2020 to 44 percent during Q1 2021.

    Energy & Power:

    Mining and power plant operations at Thar continued smoothly, with over a million tons of coal being supplied by the mine. The plant remained fully operational and achieved 81 percent availability with a load factor of 76 percent and a dispatch of 987 GwH to the national grid during the quarter. Meanwhile, the expansion of the mine at Thar to increase output to 7.8 million tons per annum is underway.

    The Qadirpur Power Plant 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, the plant has been made available on mixed mode. The Plant dispatched a Net Electrical Output of 190 GwH to the national grid with a load factor of 41 percent compared to 37 percent during similar period last year. The business posted a PAT of Rs 399 million for the current period as compared to Rs 895 million for Q1 2020, which is mainly attributable to retirement of debt component.

    Terminals: Profitability of both the LNG and chemicals terminal remained healthy for the current quarter. The LNG terminal handled 18 cargoes, delivering 52.8 bcf re-gasified LNG in to the SSGC network. The chemicals terminal had an actual throughput of 286 kT vs. 246 kT during the similar quarter last year. The increase was primarily observed in chemical volumes, offset by lower LPG handling.

  • Bank Alfalah announces Rs3.47bn net quarterly profit

    Bank Alfalah announces Rs3.47bn net quarterly profit

    KARACHI: Bank Alfalah Limited (BAFL) on Thursday announced Rs3.47 billion profit after tax for the quarter ended March 31, 2021.

    The net profit is 23 percent higher when compared with Rs2.82 billion in the same quarter of the last year.

    The bank also declared Rs1.95 as earnings per share (EPS) for the quarter ended March 31, 2021 as compared with Rs1.59 in the corresponding quarter of the last year.

    According to the financial results submitted to the Pakistan Stock Exchange (PSX) the provisions/write-offs of the banks was at Rs216 million during the first quarter of 2021 as compared with Rs1.52 billion in the corresponding quarter of the last year.

    Net Markup / Interest Income of the bank, however, fell to Rs10.32 billion for the quarter under review as compared with Rs11.78 billion in the corresponding quarter of the last year.

    Non mark-up/interest income of the bank increased to Rs3.83 billion for the quarter ended March 31, 2021 as compared with Rs2.71 billion in the corresponding quarter of the last year.

    The bank also made considerable income through gain on securities to Rs1.09 billion during the first quarter of 2021 as compared with loss of Rs46 million in the same quarter of the last year.

    Total income of the bank during the quarter fell marginally to Rs14.15 billion during first quarter of 2021 as compared with Rs14.49 billion in the corresponding period of the last year.

    Operating expenses of the bank remained flat at Rs8.45 billion as compared with Rs8.05 billion. Total expenses of BAFL rose to Rs8.57 billion during the first quarter of 2021 as compared with Rs8.2 billion in the corresponding quarter of the last year.

  • United Bank declares 46pc growth in Q1 profit

    United Bank declares 46pc growth in Q1 profit

    KARACHI: United Bank Limited (UBL) on Thursday declared 46 percent growth in its net profit for the quarter ended March 31, 2021 due to significant decline in provisioning and write-offs.

    The bank declared Rs7.4 billion profit after tax for the first quarter (January – March) of calendar year 2021 as compared with Rs5.06 billion in the corresponding period of the last year.

    The bank also declared Rs6.05 as earnings per share (EPS) for the quarter ended March 31, 2021 as compared with Rs4.13 in the corresponding quarter of the last year.

    According to the financial results submitted to the Pakistan Stock Exchange (PSX) the provisions/write-offs of the banks was at Rs354 million during the first quarter of 2021 as compared with Rs3.7 billion in the corresponding quarter of the last year.

    Net Markup / Interest Income of the bank, however, fell to Rs16.85 billion for the quarter under review as compared with Rs17.34 billion in the corresponding quarter of the last year.

    Non mark-up/interest income of the bank increased to Rs5.78 billion for the quarter ended March 31, 2021 as compared with Rs4.66 billion in the corresponding quarter of the last year.

    The bank also made considerable income through gain on securities to Rs1.86 billion during the first quarter of 2021 as compared with Rs342 million in the same quarter of the last year.

    Total income of the bank during the quarter increased nominally to Rs22.64 billion during first quarter of 2021 as compared with Rs22 billion in the corresponding period of the last year.

    Operating expenses of the bank remained flat at Rs9.85 billion as compared with Rs9.47 billion. Total expenses of UBL rose to Rs10.12 billion during the first quarter of 2020 as compared with Rs9.87 billion in the corresponding quarter of the last year.

  • Meezan Bank declares Rs6.1 billion profit after tax for first quarter

    Meezan Bank declares Rs6.1 billion profit after tax for first quarter

    KARACHI: Meezan Bank Limited, which is providing Sharia compliant banking and financing in Pakistan, on Tuesday declared Rs6.1 billion after tax profit for the quarter ended March 31, 2021.

    The net profit of the bank increased by 11 percent during the first quarter (January – March) 2021 when compared with the net profit of Rs5.5 billion in the corresponding period of the last fiscal year.

    According to the financial results of the bank, the profit/return earned on Islamic financing and related assets, investment and placements fell to Rs24.23 billion during first three months of the calendar year 2021 as compared with Rs29.83 billion in the corresponding months of the last year.

    Similarly, profit on deposits and other dues expensed also reduced to Rs9.17 billion during the period under review as compared with Rs15.11 billion in the corresponding period of the last year.

    However, the bank recorded 61 percent growth in fee and commission income to Rs2.06 billion for the quarter ended March 31, 2021 as compared with Rs1.28 billion in the same quarter of the last year.

    Total income of the income for the quarter under review increased to Rs18.61 billion as compared with Rs17.91 billion in the corresponding quarter of the last year.

    The operating expenses of the bank increased to Rs7.83 billion during January – March of 2021 as compared with Rs6.8 billion in the same period of the last year.

    Meezan Bank declared Rs4.31 as earnings per share (EPS) for the quarter ended March 31, 2021 as compared with Rs3.89 in the same quarter of the last year.

  • HBL declares 108 percent growth in quarterly profit

    HBL declares 108 percent growth in quarterly profit

    KARACHI: Habib Bank Limited (HBL) on Tuesday announced 108 percent increase in profit for the quarter ended March 31, 2021. The profit after tax of the bank increased to Rs8.56 billion during the first quarter (January – March) 2021 from Rs4.11 billion in the same quarter of the last year.

    Analysts at Insight Research said that the results of the bank were above expectation.

    “The result is above our expectation of Rs4.3/share as net interest income and non-markup income came in higher from our expectations. The result is also accompanied by a cash dividend of Rs1.75/share,” they said.

    Net interest income (NII) increased by 16 percent/4 percent YoY/QoQ to clocked-in Rs32.4 billion, possibly due to lagged impact of repricing and balance sheet expansion. However, we await detailed account for further clarity in this regard.

    Non-Markup income increased by 42 percent/26 percent YoY/QoQ to clocked-in at Rs8.2 billion. This is primarily led by a higher fee income which increased by 25 percent YoY, while recovery of income in FX operations and derivatives further fueled non-markup income.

    Bank has booked provision of Rs1.9 billion against a provision of Rs0.62 billion booked in SPLY. To note, HBL has booked hefty provisioning in both general and specific categories during CY20 (Rs12.2 billion).

    Operating expenses witnessed a contraction of 7 percent YoY, to clocked-in at Rs24.2 billion, attributable to a reduction in business transformation cost.

    Effective taxation remained at 41 percent during the quarter as compared to 42 percent in SPLY.  

  • Engro Corp approves $31.4m for petrochemical project study

    Engro Corp approves $31.4m for petrochemical project study

    KARACHI: The board of directors of Engro Corporation Limited has approved $31.4 million for commencement of a study on a projected related to petrochemical chemical for future investment prospects.

    In an information shared with the Pakistan Stock Exchange (PSX), the company said that the board in its meeting held on April 08, 2021 approved an amount of up to $31.4 million towards conducting engineering, design and technical studies including a Front End Engineering Design (FEDD) study in relation of PDH-PP Project.

    The result of these studies, when completed, are expected to inform the final investment decision in relation to this project, which decision will also be based on a conducive policy environment and arranging the right mix of debt and equity partners at such time.