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Category: Corporate

  • HUBCO issues Sukuk wroth Rs6bn for capital requirements

    HUBCO issues Sukuk wroth Rs6bn for capital requirements

    KARACHI: The Hubco Power Company Limited (HUBCO) has issued Sukuk worth Rs6 billion for financing the ongoing capital requirement of the company.

    In a communication sent to Pakistan Stock Exchange (PSX) on Friday, it said that HUBCO through its wholly owned subsidiary, Hub Power Holding Limited, had executed and issued an Islamic Shariah compliant discounted Sukuk of Rs6 billion.

    The Sukuk is partnered with Arif Habib Limited as its arranger, Meezan Bank as Shariah Adivsor and is subscribed by financial institutions, investment companies and other eligible institutions.

    “The purpose of this Sukuk is to finance the ongoing capital requirements of the company,” it added.

    FPCCI demands reduction in levy, taxes on petroleum products
  • SECP extends coronavirus contingency plan for corporate meetings

    SECP extends coronavirus contingency plan for corporate meetings

    ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has extended the applicability of coronavirus related contingency planning for general meetings of shareholders.

    In a notification issued on Friday, the SECP extended the applicability of its circular No. 5 of 2020 dated March 17, 2020 to annual general meetings and extra-ordinary general meetings to be held up till January 31, 2021.

    In its circular no. 5 dated March 17, 2020, the SECP issued following coronavirus contingency planning for annual general meetings of shareholders:

    In light of the threat posed by evolving COVID-19 situation (coronavirus) pandemic and to protect the wellbeing of shareholders, the SECP issued the following directives:

    i. In order to avoid large gathering at one place, the companies shall consider provision of video link facilities, webinar or other electronic means.

    ii. The companies shall also provide email, WhatsApp number, mobile number or any other electronic mean through which shareholders can provide comments/suggestions for the proposed agenda items of the AGM.

    iii. The companies shall disseminate the aforesaid details to the shareholders through its website, Pakistan Stock Exchange and addendum/notice in newspapers along with complete information necessary to enable them to access the facility. Any change in venue shall also be communicated.

    iv. It will be responsibility of the company secretary and chairman of the meeting that comments / suggestions of the shareholders should be discussed in the meeting and made part of the minutes of the meeting.

    v. Maximum participation of shareholders be ensured via electronic means and by requesting members to consolidate their attendance through proxies, while honoring quorum provisions.

    vi. The companies shall consider protective measures during the meeting i.e. provision of hand sanitizers, masks and distant seating etc.

    vii. For special business voting through postal ballot shall be considered.

    viii. With reference to Circular No. 02/2018 dated February 09, 2018 it is re-emphasized that the provision of gifts/incentive in any form to shareholders at or in connection to general meetings is strictly prohibited under Section 185 of the Act.

  • PIA declares Rs39.85bn loss for nine-month period as revenue declines sharply

    PIA declares Rs39.85bn loss for nine-month period as revenue declines sharply

    KARACHI: Pakistan International Airlines (PIA) has declared net loss of Rs39.85 billion for the nine-month period ended on September 30, 2020, which is mainly attributed to 31 percent decline in total revenue.

    According to financial results submitted to Pakistan Stock Exchange, the net losses of the national flag carrier slightly contracted when compared with the net loss of Rs41.98 billion in nine-month period ended September 30, 2019.

    The cost of sales of the company fell to Rs74.43 billion during the period January – September 2020 as compared with Rs102.62 billion in the same period of the last fiscal year.

    Administrative expenses of the airline fell to Rs4.52 billion during nine-month period ended September 30, 2020 as compared with Rs4.99 billion in the corresponding period of the last fiscal year.

    However, operational losses of the PIA increased sharply to Rs8.7 billion during the period under review as compared with Rs4.85 billion for the nine-month period ended September 30, 2019.

    The PIA suffered an amount of Rs7.57 billion as exchange losses during the period. The company witnessed a loss of Rs11.60 billion as exchange loss in nine-month period of the last year.

  • Gul Ahmed Textile Mills declares 64.35 percent quarterly growth in net profit

    Gul Ahmed Textile Mills declares 64.35 percent quarterly growth in net profit

    KARACHI: Gul Ahmed Textile Mills Limited has reported a remarkable profit growth of 64.35 percent after tax for the quarter ended September 30, 2020.

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  • UBL makes Rs5.45 billion quarterly provisioning, write-offs

    UBL makes Rs5.45 billion quarterly provisioning, write-offs

    KARACHI: High provisioning and write-offs of Rs5.45 billion has resulted in decline of after tax profit declared by United Bank Limited (UBL)

    UBL submitted its financial results to Pakistan Stock Exchange (PSX) on Monday and declared 4.11 percent decline in after tax profit to Rs4.66 billion for the quarter ended September 30, 2020 as compared with the profit of Rs4.86 billion in the corresponding quarter of the last year.

    Major reason in decline of profit may be attributed to higher amount of provisioning and write-offs.

    The provisioning and write-offs were at Rs5.45 billion for the quarter ended September 30, 2020 as compared with Rs1.99 billion in the corresponding quarter of the last year.

    Net mark up / interest income of the bank increased to Rs19.09 billion for the quarter under review as compared with Rs15.42 billion in the same quarter of the last year.

    Total income of the bank surged to Rs23.19 billion for the quarter ended September 30, 2020 as compared with Rs20.5 billion in the same period of the last year.

    Expenses of the bank were flat at Rs10.09 billion as compared with Rs10.2 billion in the same period of the last year.

    The bank paid tax to the tune of Rs2.97 billion for the quarter ended September 30, 2020 as compared with Rs3.44 billion in the same period of the last year.

  • Ogra imposes penalty of Rs10 million on Hascol Petroleum

    Ogra imposes penalty of Rs10 million on Hascol Petroleum

    The Oil and Gas Regulatory Authority (OGRA) has imposed a penalty of Rs10 million on Hascol Petroleum Limited and suspended its marketing license for Khyber Pakhtunkhwa. The regulatory action, communicated to Hascol on October 20, 2020, was disclosed by the company in a notification to the Pakistan Stock Exchange (PSX) on Thursday.

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  • Engro Fertilizers announces 112 percent growth in quarterly profit

    Engro Fertilizers announces 112 percent growth in quarterly profit

    KARACHI: Engro Fertilizers Limited has recorded massive growth of around 112 percent for the quarter ended September 30, 2020 owing to increase in sales and lower payment of taxes.

    In its financial results submitted to Pakistan Stock Exchange (PSX) on Wednesday, the company announced profit after tax of Rs7.03 billion for the quarter ended September 30, 2020 as compared with Rs3.32 billion in the same quarter of the last year.

    The sales of the company registered 38 percent growth to Rs37.43 billion for the quarter under review as compared with Rs27.1 billion in the same quarter of the last year.

    The payment of tax by the company was Rs169.36 million for the quarter ended September 30, 2020 as compared with the tax payment of Rs2.65 billion in the same quarter of the last year.

    The gross profit of the company was at Rs10.84 billion for the quarter under review as compared with Rs8.84 billion in the same quarter last year.

    Administrative expenses of the company increased to Rs514.67 million for the quarter ended September 30, 2020 as compared with Rs296.36 million in the corresponding quarter of the last year.

    The company announced earnings per share of Rs5.27 for the quarter under review as compared with EPS of Rs2.49 in the same quarter of the last year.

  • Meezan Bank declares healthy profit of 65 percent in nine months

    Meezan Bank declares healthy profit of 65 percent in nine months

    KARACHI: Meezan Bank Limited on Tuesday announced healthy profit of 65 percent for nine-month period ended September 30, 2020.

    According to financial results submitted to Pakistan Stock Exchange (PSX), the bank declared profit after tax of Rs18 billion for the nine-month period ended September 30, 2020 as compared with Rs10.94 billion in the corresponding period of the last year.

    The bank also declared earnings per share of Rs12.78 for the period under review as compared with Rs7.73 in the corresponding period of the last year.

    Total income of the bank registered 43 percent increase to Rs56.92 billion during the period as compared with Rs39.88 billion in the same period of the last year.

    Operating expenses of the bank grew by 22.43 percent to Rs21.88 billion for the period ended September 2020 as compared with Rs17.87 billion in the same period of the last year.

    The gross profit of the bank witnessed a growth of 58 percent to Rs30 billion for the nine-month period as compared with Rs19 billion in the same period of the last year.

    Alongside result, the bank announced a cash dividend of Rs4.0 share.

    Analysts at Topline said that the result came in higher than our expectations due to lower than expected profit expensed on deposits, which is most likely driven by continued focus on Current Account growth and possible re-pricing of maturing Term Deposits.

    Profit earned on assets depicted a decline of 9 percent Quarter on Quarter (QoQ). Along with lower interest rates, 1 percent QoQ decline in industry loans amidst slowdown in economic activity has been the cause of the decline.

    Profit expensed on deposits substantially declined by 22 percent QoQ amidst re-pricing of liabilities to lower interest/profit rates, where non applicability of Minimum Deposit Rate (MDR) on Islamic banks would have also contributed.

    As a result, Net Spread Earned declined by just 1 percent QoQ.

    Other Income showed resurgence with a jump of 17 percent QoQ driven by increase in Fee Income growth of 49 percent QoQ as branch operation resumed after lifting of COVID-19 lockdown.

    Despite the branch expansion strategy, other expenses were kept in check (down 0.1 percent QoQ). Cost to Income for the quarter stood at 40 percent.

  • Agha Steel’s IPO receives overwhelming response

    Agha Steel’s IPO receives overwhelming response

    KARACHI: The Initial Public Offering (IPO) of Agha Steel has received overwhelming response from investors as it was oversubscribed at the book building phase on Wednesday.

    The IPO received an overwhelming response from institutional investors and high net worth individuals as the strike price clocked in at Rs32 per share, higher than the floor price of Rs30, a statement said.

    The book-building phase of the Initial Public Offer (IPO) of Agha Steel concluded with investors oversubscribing it by as much as 1.63 times.

    This means Agha Steel is going to raise Rs3.8 billion in total, making it the largest IPO in the steel sector and the second-largest IPO in the private sector.

    Brokers and investment advisory firms had issued almost unanimous calls to ‘subscribe,’ which resulted in investor demand amounting to Rs4.4 billion against the IPO’s book-building size of Rs2.7 billion.

    The general public will subscribe to the remaining 30 million shares (25 percent of the total offer size) on Oct 14-15 at the strike price of Rs32.

    The company will use IPO proceeds to finance the expansion of its re-rolling capacity from 250,000 metric tons to 650,000 MT. It will increase the reinforcing bar production capacity by 160 per cent.

    Brokerage houses anticipate steady growth in the company’s bottom line owing to a substantial rise in construction activities across the country. The main product of Agha Steel is reinforcing bars that are used in the construction of megastructures, roads, bridges, skyscrapers and homes.

    In a research report last week, AL Habib Capital Markets stated that it expected the share price of Agha Steel to hover around Rs57 by June 2022. The target prices stated by Pearl Securities and KASB Securities are Rs50 and Rs42, respectively.

    In a message on social media, Agha Steel CEO Hussain Iqbal Agha expressed his gratitude to investors and their historic overwhelming response. He vowed to ensure growth of their shareholders’ equity.

  • OGDCL declares over 15 percent decline in annual profit

    OGDCL declares over 15 percent decline in annual profit

    KARACHI: Oil and Gas Development Company Limited (OGDCL) on Monday announce financial results and declared over 15 percent decline in annual profit mainly because of lower sales during the year.

    In its financial results submitted to Pakistan Stock Exchange (PSX), the company declared Rs100 billion after tax profit for the year ended June 30, 2020 as compared with Rs118.38 billion in the preceding financial year, showing a decline of 15.52 percent.

    The earnings per share also fell to Rs23.27 for the year 2020 as against EPS of 27.53 a year ago.

    The company declared net sales of Rs244.85 billion for the year ended June 30, 2020 as compared with Rs261.48 billion a year ago.

    According to Topline Securities, the company in FY20 recorded average net crude oil production of 36,073 bpd, average net gas production of 893 MMcfd, average net LPG production of 739 MTPD and average net Sulphur production of 54 MTPD.

    Twenty-five wells were spud, comprising of fifteen exploratory/appraisal, five development and five re-entry/side track wells in FY20.

    Average net realized price of oil was US$46.76/barrel during FY20 as against US$58.74/barrel last year.

    Net realized price for natural gas was Rs393.32 per mmcf as against Rs337.66 per mmcf last year.

    The company has recognized 8 dry wells in FY20 compared to 2 wells in FY19.

     The company expects FY21 capex target at Rs55bn, targeting 45 wells herein exploratory wells are 31.

    Nashpa production stats are likely to sustain over 2 years at 15-16k bopd.

    The company is also evaluating ENI assets in Pakistan. To recall, ENI is planning to sell its assets in Pakistan.

    The company is all set to bid for new blocks which are expected to be auction by this year end.

    OGDC has received Rs6.5bn from Uch Power Private Limited, from the disbursements under the Pakistan Energy Sukuk-II.

    In addition, the Company has also received some payments from SSGC and SNGP with average collection standing at around 70 percent.

    Operating expenses of the company remained inflated in 4QFY20 due to year-end factors like some non-cash expenses and pension costs re-evaluation.

    The effective tax rate clocked in at 30 percent in FY20 vs. 33 percent in FY19 due to absence of Super Tax.