KARACHI: The Institute of Chartered Accountants of Pakistan (ICAP) has taken disciplinary action against an audit firm for professional misconduct, suspending its operations and removing its name from the official register for a period of six months.
(more…)Category: Corporate
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NBP announces 21% decline in after tax profit
KARACHI: National Bank of Pakistan (NBP) on Friday announced 21 percent decline in its annual profit for period ended December 31, 2019. The bank declared Rs15.8 billion after tax profit for the year 2019 as cmopared with Rs20.01 billion in the last year.
According to unconsolidated profit and loss account, the bank declared basic earnings per share at Rs7.43 for the year 2019 as it was Rs9.41 EPS in 2018.
The net interest income of the bank rose by 18.53 percent to Rs71.9 billion for the period ended December 31, 2019 as compared with Rs60.66 billion a year ago. Non-mark up income of the bank was flat at Rs36.19 bllion when comared with Rs36.246 billion a year ago.
The operating expenses of the NBP increased by 18.02 percent to Rs65.725 billion when compared with Rs55.687 billion.
The provisioning for write-offs increased by 26.1 percent to Rs14.25 billion in 2019 as compared with Rs11.3 billion a year ago.
The tax payment of the bank also increased by 26.22 percent to Rs12.193 billion for the year ended December 31, 2019 as compared with Rs9.66 billion in 2018.
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Pakistan Stock Exchange declares 132% surge in net profit for first half
KARACHI: The net profit of Pakistan Stock Exchange (PSX) has surged by 132 percent during six-month period ended December 31, 2019.
The stock exchange announced its half year results for the period ended December 31, 2019 on Wednesday.
The net profit of the market increased to Rs120.5 million during July – December 2019 as compared with Rs51.88 million in the corresponding period of the last year.
It declared basic and diluted earnings per share at Re0.15 for the first half under review as compared with EPS of Re0.06 in the same half of the last year.
Revenue under licensing fee increased to Rs201 million during July – December 2019 as compared with Rs169.87 million in the same period of the last year.
Mark-up/interest income of the market increased to Rs78.66 million as compared with Rs62.82 million in the same period of the last year.
Administrative expenses of the stock market slightly reduced to Rs559.21 million in first half of the current fiscal year as compared with Rs578 million in the corresponding half of the last fiscal year.
The PSX received Rs185.83 million as income from share of profit from associates during six months period ended December 31, 2019.
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OGDCL declares fall in net profit to Rs53.18 billion during six months
KARACHI: The net profit of Oil and Gas Development Company Limited (OGDCL) fell to Rs53.184 billion for the six-month period ended December 31, 2019.
According to financial results for the six-month period ended December 31, 2019 announced on Wednesday, the after tax profit for the same period in last year was Rs56.75 billion.
The company declared earnings per share at Rs12.37 for the period, which was also declined when compared with Rs13.20 EPS declared in the same period of the last year.
The net sales of the company increased to Rs133.44 billion for six months period ended December 31, 2019 as compared with Rs126.89 billion in the same period of the last year.
Operating expenses of the company increased to Rs30.55 billion for the period under review as compared with Rs29.63 billion in the corresponding half of the last year.
The exploration and prospecting expenditure increased to Rs10.42 billion as compared with Rs4.48 billion in the corresponding period of the last year.
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Pakistan Petroleum declares 21% decline in half year profit
KARACHI: Pakistan Petroleum Limited (PPL) has announced 21 percent decline in after tax profit for half-year period ended on December 31, 2019.
According to financial results submitted to Pakistan Stock Exchange (PSX) on Tuesday, the company declared net profit of Rs24.55 billion for the half year ended December 31, 2019 as compared with Rs31.04 billion in the same half of the last year.
The company declared earnings per share of Rs9.02 for half year ended December 31, 2019 as compared with Rs11.41 in the corresponding period of the last year.
The decline in profit has been mainly attributed to higher operating expenses and higher exploration expenses.
The operating expenses of the company increased to Rs21.34 billion for the period under review as compared with Rs19.45 billion in the half-year period ended December 31, 2018.
Similarly, exploration expenses grew to Rs11.74 billion for the half-year period ended December 31, 2019 as compared with Rs7.99 billion in the corresponding half of the last year.
The company declared decline of profit by 39 percent to Rs10.31 billion for quarter ended December 31, 2019 as compared with Rs16.85 billion in the same quarter of the last year.
Analysts at Topline Securities said that PPL’s reported lower than expected earnings during the outgoing quarter. This deviation from our estimates was mainly on account of higher than expected exploration expenses. Increase of 106 percent was seen YoY while on quarterly basis they increased by a massive 197 percent.
PPL’s revenue grew by 7 percent YoY in 2QFY20, despite a decline of 3 percent in oil production and a 12 percent decline in gas production, the analysts said.
Oil prices for the period didn’t fare well either declining 6 percent YoY for 2QFY20. The favorable exchange rate movement YoY was enough to post growth for the period under review YoY.
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Engro wins UN business sustainability award
KARACHI: Engro Corporation has won the first prize for ‘Living the UN Global Compact Business Sustainability Award 2019’ in the Large National Category, for the second year in a row, a statement said on Tuesday.
The company has been awarded in recognition of promoting UNGC Principles and Sustainable Development Goals.
The award was presented at the Business Sustainability Moot and Living the Global Compact Best Practices Sustainability Award ceremony, organized by Global Compact Network Pakistan.
The Award signifies Engro’s continued commitment towards UNGC principles in the areas of governance, human rights, labour rights, environment, and anti-corruption.
Through its CSR arm of Engro Foundation, the Company has adopted an inclusive business model approach that targets low-income communities where its businesses are based.
This approach enables underprivileged members of the society to emerge as potential business partners and become vendors, customers and employees in Engro’s business value chains.
Further, Engro Foundation’s strategic community investments are focused on the provision of quality education, health and livelihoods to underprivileged communities across Pakistan.
Sharing his thoughts on receiving the Award, Favad Soomro, Head of Engro Foundation, said: “It is a matter of great honour for Engro to win the UNGC award for second year in a row. The Company stands committed to upholding the UNGC principles and maximizing its social and economic impact for a more prosperous Pakistan.”
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Engro Corp declares 32% revenue growth
KARACHI: Engro Corporation has posted consolidated annual revenue growth of 32 percent for the period ended December 31, 2019 as compared with the revenue of the last year.
The significant growth in revenue mainly driven by energy projects in Thar coming online during July 2019 and augmented by higher turnover of Fertilizers and Petrochemicals businesses, a statement said on Friday.
The Company posted a consolidated profit after tax (PAT) of Rs30.288 billion compared to Rs23.632 billion for last year. Profit attributable to the owners was recorded at Rs16.533 billion compared to Rs12.708 billion for last year.
This growth in profitability is after accounting for a provision of Rs1.224 billion relating to impairment of the Company’s investment in FrieslandCampina Engro Pakistan Limited, under the requirements of International Accounting Standard 36 (Impairment of Assets).
On a standalone basis, the Company posted a PAT of Rs14.303 billion against Rs12.720 billion for the comparative year, translating into earnings per share of Rs24.83 per share. This increase is primarily attributed to higher dividends from subsidiaries as well as higher interest income on investable reserves.
The company announced a final cash dividend of Re1.00 per share for the fourth quarter, bringing the cumulative payout for the year to Rs24.00 per share.
Fertilizer business achieved a historic milestone of highest ever Urea production of 2 million tons due to better plant efficiency and higher gas availability.
This, coupled with higher fertilizer prices, has resulted in an increase of 11 percent in sales revenue over the prior year.
The business recorded a PAT of Rs16.871 billion – down by 3 percent from last year – decrease mainly attributed to a one-off deferred tax impact of higher future corporate tax rates introduced through Finance Act, 2019.
Urea prices are expected to remain under pressure following a prospective reduction in GIDC. In response to this reduction, the business passed on the benefit to the end consumer through a price reduction of Rs160/bag.
Furthermore, the fertilizer industry continues to face challenges in the recovery of long outstanding subsidy and retrospective settlement of GIDC.
Polymer business recorded a revenue growth of 7 percent, while PAT was Rs3.661 billion compared to Rs4.930 billion for last year.
This fall in profits is attributable to inflationary impacts in the form of higher energy prices and interest rates coupled with one-off gains recorded in 2018.
In line with its long-term strategy, the business successfully initiated commercial production and commenced exports from its Caustic Flake plant.
Development of the 3.8 Mt per annum mine at Thar concluded with the successful ‘Test on Completion’ on June 3, 2019. Thereafter, Commercial Operations Date (COD) was declared on July 10, 2019 for both mining and power projects and the Thar power plant has been running smoothly ever since.
Further, the project commenced construction of Phase II of the mine expansion and achieved Financial Close on December 31, 2019, which will enhance production of coal from the mine to 7.6 Mt per annum.
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GlaxoSmithKline Pakistan appoints Erum Shakir as new CEO
KARACHI: Aziz ul Huq, Chief Executive Officer of GlaxoSmithKline Pakistan Limited has resigned for personal reasons and the board of directors of the company appointed Ms. Erum Shakir Rahim as new CEO of the company from March 01, 2020.
In a notice to Pakistan Stock Exchange (PSX) on Thursday, the company said that Aziz ul Huq, CEO, GlaxoSmithKline Pakistan Limited had resigned to join his family in Australia.
The board of directors has accepted his resignation with effect from March 01, 2020 and extended their best wishes to him in his future endeavors.
“The board of directors has also appointed Ms. Erum Shakir Rahim, General Manager, GSK Indonesia Pharma Emerging Markets as new Chief Executive Officer of GlaxoSmithKline Pakistan Limited with effect from March 01, 2020.”
The company said that Ms. Erum Shakir Rahim had a strong track record of success in multiple GM roles within GSK in Malaysia (Brunei), Bangladesh (Developing Countries Asia cluster) and Indonesia.
In her role as GM Indonesia Erum led the team to transform the business and deliver strong top line growth 12 percent, OP growth of 25 percent, increase in market share, rank and EI of 106. With a high people engagement score of 87 percent.
Before taking on general management roles outside Pakistan, Erum worked as director marketing Sales and Business Development GSK Pakistan, Iran and Afghanistan. Where she did multiple commercial and strategic roles of increasing responsibility across pharma, vaccines and consumers. These included roles in marketing, sales, comms, GA and business development.
She contributed to GSK Pakistan’s market leading position in the country with 12 percent market share and eight GSK brands in the top 20 by launching 20 new assets across several therapy areas as well as leading critical business development initiatives. She is also on the board of directors in GSK Pakistan and Bangladesh in her previous roles.
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Indus Motors posts 67% decline in half-year profit
KARACHI: Indus Motors Company Limited on Wednesday declared massive 67 percent decline in net profit for six-month period ended December 31, 2019.
According to financial results announced by Indus Motors, the company declared Rs2.3 billion profit after tax for the half year ended December 31, 2019 as compared with Rs6.91 billion in the corresponding half in the preceding year.
The company declared earning per shares of Rs29.32 for the period as compared with EPS of Rs87.94 in the same period of the preceding year.
The company declared gross profit of Rs3.76 billion for six month period, which fell by 62.6 percent when compared with Rs10.05 billion in the corresponding period of the last year.
The expenses of the company increased by 14.28 percent to Rs1.52 billion for half year ended December 31, 2019 as compared with Rs1.33 billion in the same period of the last year.
Revenue from contracts with customers has declined 44 percent to Rs42.77 billion during the period under review as compared with Rs76.44 billion in the corresponding period of the last fiscal year.
Cost of sales also came down to Rs39 billion for the half year ended December 31, 2019 as c compared with Rs66.39 billion in the corresponding half of the last year.
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UBL declares 26% growth in annual profit
KARACHI: United Bank Limited has declared 26 percent growth in annual profit for calendar year 2019 owing to significant increase in net mark-up income.
According to financial results for calendar year 2019 released on Wednesday, the bank declared Rs19.13 billion after tax profit as compared with Rs15.22 billion profit in the preceding year.
The bank also announced Rs15.63 as earning per share for the year as compared with EPS of 12.44 declared in the last year.
The interest income of the bank registered 36 percent increase to Rs153.67 billion in calendar year 2019 as compared with Rs113.9 billion in the preceding year.
However, total non-markup come at Rs61.77 billion in 2019 as compared with Rs56.23 billion in the last year.
Total income of the bank after including non-mark up income rose to Rs83.45 billion in 2019 as compared with Rs81.25 billion in the preceding year.
Operating expenses of the bank have increased to Rs40.21 billion in 2019 as compared with Rs38.82 billion in preceding year.
The bank contributed income tax to the tune of Rs15.1 billion in the calendar year 2019 as compared with Rs9.74 billion in the preceding year.