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Category: Corporate

  • Engro Fertilizers highlights food security at Dubai Expo

    Engro Fertilizers highlights food security at Dubai Expo

    KARACHI: Engro Fertilizers, Pakistan’s premier seed-to-harvest solutions provider, hosted an insightful dialogue at Expo 2020 Dubai to highlight the food security situation in the Gulf and the potential partnership opportunities with Pakistan to overcome the regional food security challenges.

    The panel comprised global agricultural and industry experts including Dr. Abdul Rashid (IFA Laureate), Charles Schneider (International Finance Corporation), Ayman Alwadhy (The Corporate Group, UAE), Wasim Halabi (Foodco National Foodstuff Co PJSC), Fredric Favre (MAS Seeds, France) and Khusrau Nadir Gilani (Engro Fertilizers).

    The event was also graced by Hussain Dawood (Chairman of Engro Corporation and Dawood Corporation), Shahzada Dawood (Vice Chair, Engro Corporation), Ghias Khan (President & CEO of Engro Corporation) and Nadir Salar Qureshi (CEO of Engro Fertilizers), along with other members of the Engro leadership team.

    The expert panel pointed out that food security in the Gulf region is a growing challenge due to high dependence on food imports, increasing water scarcity, climate change and supply chain interruptions.

    In 2020, the region’s share of the acutely food insecure global population was 20 per cent, which is disproportionately high compared to its 6 per cent share of the population. By forging partnerships in the agricultural sector with large established sustainable agri-base countries, like Pakistan, the region can benefit from enhanced agricultural output to overcome its food security challenge.

    There is significant potential to increase Pakistan’s agricultural output with focus on modern technology, seed quality, balanced use of fertilizers, and uplift of infrastructure across the agri value chain. It was noted that if average farmer yields are brought at par with those of progressive farmers within the country, Pakistan will see a dramatic increase in wheat and rice production serving not only the needs for domestic consumption, but also create significant surpluses for exports to the Gulf-Region.

    The Government of Pakistan was also applauded for its efforts to improve water provision and farm economics, resulting in an increase of approximately 1.6 million hectares in area under cultivation with further growth anticipated with large irrigation projects underway.

    According to Nadir Qureshi, “To bridge the agri yield gap and enrich crops with essential nutrients, Engro Fertilizers has introduced innovative products and seed-to-harvest solutions, farmer upskilling programs, access to expert advice by leveraging technology, and free of cost soil testing laboratories. We hope that this dialogue will serve as an initial step to encourage Pakistan, Engro and Gulf entities to work together to jointly develop innovative solutions and explore the scope for international partnerships in the agri space.”

    The panel discussion concluded that the food and agriculture sector can be an engine of economic growth for both the Gulf region and Pakistan. Through the adoption of technological innovation and sustainable practices, the agricultural sector of Pakistan can be transformed to reduce dependence on food imports, create surpluses to drive significant exports and meet the Gulf regions’ dietary nutrition requirements.

  • Citi Pharma declares 100% increase in half year profit

    Citi Pharma declares 100% increase in half year profit

    KARACHI: Citi Pharma Limited on Tuesday announced about 100 per cent increase in its net profit for the half year ended December 31, 2021.

    The net profit of the company was Rs343 million for the half year ended December 31, 2021 as compared with Rs168 million in the same period of the last year.

    READ MORE: PSX notifies listing of Citi Pharma

    The company said that the net profit had witnessed significant rise in spite of the expenses incurred on the listing of the company during the period under review.

    In the period under review, the net sales increased to Rs4.84 billion for the half year ended December 31, 2021 as compared with Rs2.63 billion in the corresponding period of the last year, showing a growth of 84 per cent.

    Similarly, the gross profit increased to Rs701 million for the period under review as compared with Rs410 million in the same period of the last year.

    READ MORE: Citi Pharma’s IPO oversubscribed; Rs2.32 billion raised in book building

    On the quarter basis there is an increase of sales of the company from Rs1.99 billion to Rs2.85 billion and registered an increase of 43 per cent from the previous quarter.

    The gross profit for the quarter increased to Rs405 million as compared with Rs296 million from the previous quarter and witnessed an increase of 37 per cent.

    READ MORE: Citi Pharma’s IPO book building starts June 15

    Net profit of the second quarter has improved to Rs261 million a compared with Rs81 million and registered an increase of 222 per cent on quarter basis, in the first quarter listing expense of Rs129 million was incorporated otherwise the profit could have been Rs210 million.

    The company has also decided to increase the number of beds of the hospital from 50 to 200.

    READ MORE: List of cities contributing tax above Rs1 billion

  • SECP, FBR integration brings 2,365 companies under tax net

    SECP, FBR integration brings 2,365 companies under tax net

    ISLAMABAD: The integration between Securities and Exchange Commission of Pakistan (SECP) and Federal Board of Revenue (FBR) has brought 2,365 companies under tax registration.

    A statement issued by the SECP stated that as a result of integration of SECP with FBR and various provincial departments, 2,365 companies were registered with FBR for generation of NTN, 40 companies with EOBI, 16 companies with PESSI/SESSI and 37 companies with Excise and Taxation department.

    READ MORE: Retail sector’s sales worth Rs16 trillion not in tax net: Tarin

    The SECP said that the total registration with the commission reached to 160,989 by end of January 2022.

    While it registered 2,448 new companies in January 2022 witnessing an increase of 10 per cent as compared to corresponding period, last year.

    About 62 percent companies were registered as private limited companies, while 36 percent were registered as single member companies. Two percent were registered as public unlisted companies, not for profit associations, trade organizations, foreign companies and limited liability partnership (LLP).

    READ MORE: RDA: SECP exempts banks from obtaining license

    About 99.5 percent companies were registered online while 225 foreign users were registered from overseas. Total capitalization (paid-up-capital) with regard to newly incorporated companies for the current month stood at Rs.3 billion.

    Foreign investment has been reported in 53 new companies. These companies have foreign investors from Afghanistan, Australia, Canada, China, Egypt, Germany, Hungary, Iran, Italy, Jordan, Korea South, Peru, Philippines, Russia, Saudi Arabia, South Africa, Turkey, the UK and the US.

    READ MORE: SECP warns against investing in fraudulent schemes

    In January’s incorporations, the real estate development & construction sector took the lead with incorporation of 427, information technology with 365, trading with 290, services with 212, tourism with 129, e-commerce with 119, education with 111, food and beverages with 89, marketing and advertisement with 69, engineering with 58, textile with 56, pharmaceutical with 43, corporate agricultural farming with 42, healthcare with 40, chemical with 35, transport with 34, mining and quarrying, and power generation with 29 each, lodging with 26, auto and allied, and fuel and energy with 22 each, communications, and cosmetics and toiletries with 21 each, cables and electric goods, and paper and board with 17 each, steel and allied with 13, arts and culture with 12, broadcasting and telecasting with 10, and 90 companies were registered in other sectors.

    READ MORE: Company registration rises to 145,913 by June 2021: SECP

  • MCB Bank gets approval for Telenor Bank due diligence

    MCB Bank gets approval for Telenor Bank due diligence

    KARACHI: State Bank of Pakistan (SBP) has granted MCB Bank to conduct due diligence for the purchase of 55 per cent shares of M/s. Telenor Microfinance Bank, a statement said on Monday.

    According to it the SBP had granted in-principal conditional approval to MCB to conduct due diligence for a potential transaction for the purchase of 55 per cent shares of M/s. Telenor Microfinance Bank Limited held by Telenor Pakistan BV (operates under the Easypaisa brand name)

    The board of directors of MCB had already, in its meeting held on October 27, 2021 accorded its in-principle approval to conduct a due diligence for the potential transaction.

    MCB Bank declares highest ever Rs52 bn profit before tax
  • Meezan Bank announces 26% growth in annual profit

    Meezan Bank announces 26% growth in annual profit

    Meezan Bank Limited (MEBL) has unveiled robust financial results for the fiscal year 2021, showcasing a remarkable 26% growth in profit.

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  • 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.