Pkrevenue.com

Category: Corporate

  • Engro selects technology partners for polypropylene production facility

    Engro selects technology partners for polypropylene production facility

    KARACHI:  Engro Corporation, Pakistan’s premier conglomerate, has selected Honeywell UOP and W. R. Grace & Co. as technology partners to use their licensed process technology for the $1.5 billion, 750,000 Propane Dehydrogenation (“PDH”) and Polypropylene (“PP”) production facility, that would make Pakistan a self-sufficient producer of Polypropylene, a statement said on Tuesday.

    Polypropylene resin is used in the manufacturing of a variety of daily use consumer products including woven bags, food and non-food packaging, films, sheets, household containers, battery casings, kitchenware, electrical appliances, bottles, caps, pipes & fittings, medical equipment, and a wide range of other products. To meet these needs, polypropylene has a local annual demand of 500,000 with an expected grow rate of 7 percent annually.

    Honeywell will provide its C3 Oleflex™ technology and basic engineering design services, in addition to equipment, catalysts and adsorbents for the plant. Since 2011, most of the new dehydrogenation projects globally have been based on UOP C3 Oleflex technology.

    However, this will mark the first use of C3 Oleflex in Pakistan. The technology is designed to have a lower cash cost of production and higher return on investment when compared to competing dehydrogenation technologies.

    Its low energy consumption, low emissions and fully recyclable, platinum-alumina-based catalyst system, helps minimize its impact on the environment. The independent reactor and regeneration design of the Oleflex technology helps maximize operating flexibility and onstream reliability.

    W. R. Grace & Co., the leading independent supplier of polyolefin catalyst technology and polypropylene (PP) process technology, will provide its state-of-the-art UNIPOL® PP Process Technology to help achieve mechanical and operational simplicity. The process technology, coupled with Grace’s proprietary catalyst and donor systems and the UNIPOL UNIPPAC® Process Control System, allows for maximum performance.

    While announcing the new partnerships, Ghias Khan, President & CEO of Engro Corporation said that, “Engro continues on its journey towards solving the most pressing issues of our time by investing in projects which will serve to be catalysts of growth for Pakistan.

    “For the Project, we have selected Honeywell and Grace as our technology partners based on their extensive experience and cutting-edge solutions that have helped to set up such projects globally. This collaboration will support the advanced studies for the Project, which can be a significant milestone for Engro and Pakistan towards import substitution that will help build foreign exchange reserves, while also enhancing the petrochemicals landscape of the country.”

    Pakistan faces a critically adverse balance of payments situation due to the country’s continued reliance on imports, and petrochemicals are one of the largest imports of the country, contributing around $2 billion to the import bill. Currently, Pakistan spends about $600 million on annual import of polypropylene.

    With decades of experience in petrochemicals and a commitment to further develop its footprint in the petrochemicals vertical, Engro started conducting the commercial feasibility of the PDH complex in April 2019.

    Recently, Engro announced an investment of over $30 million to conduct engineering, design and technical studies including a Front End Engineering Design (FEED) study in relation to   the Project.

    The studies will help Engro delineate the technical complexities, refine the investment cost estimates, enhance its commercial understanding and devise mitigation strategies for potential risks of the project.

  • TPL Life launches insurance plan for overseas Pakistanis

    TPL Life launches insurance plan for overseas Pakistanis

    KARACHI: TPL Life has launched Roshan Zindagi, a unique insurance plan designed to facilitate Non Resident Pakistanis (NRP’s) and their families residing in Pakistan.

    With a unique product which is new to Pakistan’s insurance landscape, TPL Life strives to be the only digital life and health solution for valuable contributors to Pakistan’s economy they reside abroad.

    To ensure maximum convenience to NRP’s, the solution aims to provide an end-to-end, paperless and digital experience to over nine million Pakistanis residing abroad through an easy yet preference based journey.

    TPL Life’s Roshan Zindagi Insurance Plan offers Accidental Death Coverage of over Rs2.5 million for NRP’s, Comprehensive Health Insurance Benefits for their families residing in Pakistan, as well as exclusive dismemberment limits against any unforeseen events.

    To further facilitate customers, the plan also provides Cashless Hospitalization of up to Rs20 million with access to TPL Life’s 300 + panel hospitals located across Pakistan.

    The product is currently offered to Pakistanis residing in 11 countries including UAE, Saudi Arabia, Qatar, Oman, Kuwait, Bahrain, Australia, Malaysia, UK, USA and Canada, with an aim to expand the Roshan Zindagi footprint to more than 50 countries serving hardworking expats in the coming years.

    Speaking at the occasion, Faisal Abbasi, CEO, TPL Life said: “It gives me great pleasure to present Roshan Zindagi Plans for Overseas Pakistanis & their families residing in Pakistan.

    “The launch of TPL Life’s Roshan Zindagi Plan is a testament to our quest of completing the circle of safety by providing two-fold benefits to NRPs and their families. We at TPL Life, leave no stone unturned to provide personalized propositions and address the needs of every customer segment in Pakistan.”

  • Jazz injects Rs14.6bn as 4G network investment

    Jazz injects Rs14.6bn as 4G network investment

    ISLAMABAD: Jazz, Pakistan’s number one 4G operator and the largest internet and broadband service provider, has further strengthened its market leadership and continues to drive the digital ecosystem in Pakistan, according to a statement issued on Thursday.

    During the first quarter of 2021, Jazz’s overall subscriber base grew by 11.7% year-over-year (YoY) reaching 69.2 million, 4G customer base grew by 62.3 percent YoY reaching 28.7 million, whereas the overall data users grew by 17.1 percent YoY reaching 47.3 million. 

    During the first quarter of 2021, Jazz invested PKR 14.6 billion, as 4G network investment continued to be the principal focus with population coverage reaching 61 percent during the quarter. Data usage per user also grew considerably to reach 4.5 GB per user.

    Aamir Ibrahim, CEO of Jazz, said, “Jazz has been focused on ensuring a robust and expansive 4G network, especially as more and more countrymen started relying on the Internet as an essential communication, productivity and entertainment tool during the pandemic.

    “We are very pleased to see the rise in adoption of digital tools in all aspects of life – especially in fintech, in which the growth of JazzCash as Pakistan’s leading mobile wallet and digital payments provider is very impressive.

    “Given the ever-growing needs and expectations of our customers, Jazz remains firm in its commitment to connect the underserved with fast and reliable 4G and to bank the unbanked through JazzCash.”

    The country’s leading fintech, JazzCash, experienced another strong quarter as its user base saw double-digit growth, finishing the quarter with 14 million monthly active mobile wallets. Overall, JazzCash processed transactions amounting to PKR 701 billion during the reporting period. Jazz World, the self-care app, saw strong levels of customer adoption with monthly active user base reaching 8.5 million. The company’s content services also enjoyed further growth with the monthly active user base reaching 2.2 million.

  • PSO announces 5-time increase in net profit for nine-month period

    PSO announces 5-time increase in net profit for nine-month period

    KARACHI: Pakistan State Oil (PSO) has declared five-time increase in net profit for nine-month period ended March 31, 2021. The unprecedented growth may be attributed to reduction in cost of products sold during the period.

    According to financial results for nine-month period ended March 31, 2021 submitted to Pakistan Stock Exchange (PSX), the company announced an amount of Rs18.24 billion during first nine months (July – March) 2020/2021 as compared with profit of Rs3.01 billion in the corresponding period of the last fiscal year.

    The gross sales of the company fell to Rs1,008.7 billion during first nine months of the current fiscal year as compared with Rs1,038.01 billion in the corresponding period of the last fiscal year.

    The cost of products sold significant fell to Rs815.22 billion during July – March of 2020/2021 as compared with Rs867.18 billion in the same period of the last fiscal year.

    PSO declared gross profit of Rs37.7 billion during first nine months of the current fiscal year as compared with Rs20.14 billion in the same period of the last fiscal year.

    Operating cost of the company was remained flat at Rs8.06 billion during first nine months of the current fiscal year as compared with Rs8.07 billion in the same period of the last fiscal year.

    PSO declared earnings per share at Rs38.86 for the nine months period ended March 31, 2021 as compared with Rs6.41 EPS in the same period of the last fiscal year.

  • K-Electric declares 222 percent growth in quarterly net profit despite massive impairment loss

    K-Electric declares 222 percent growth in quarterly net profit despite massive impairment loss

    K-Electric Limited (KE), a leading power generation and supply company, has reported an impressive 222 percent increase in net profit for the quarter ending March 31, 2021.

    (more…)
  • 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.