The Oil and Gas Development Company Limited (OGDCL) issued a clarification on Monday, refuting media reports that suggested a massive discovery of shale gas in Sindh.
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PIA declares Rs67.32 billion annual loss
KARACHI: Pakistan International Airlines (PIA) – the national flag carrier – has declared after tax loss of Rs67.32 billion for the year ended December 31, 2018.
According to financial statement of the national flag carrier shared with the Pakistan Stock Exchange (PSX) on Friday, the annual loss of the company further ballooned by 32 percent to Rs67.32 billion for the year 2018 as compared with the loss of Rs51 billion in the preceding year.
The net revenue of the airlines increased to Rs103.49 billion for the year under review as compared with Rs90.55 billion in the preceding year, registering an increase of 14.29 percent.
The rupee depreciation has increased the cost of services as fuel cost for the year 2018 increased to Rs43.55 billion as compared with Rs31 billion in the year 2017.
The operation losses of the airlines increased by 31.28 percent to Rs47 billion in the year 2018 when compared with Rs35.81 billion in the preceding year.
The board of directors of PIA approved the financial results in a meeting held on Thursday November 21, 2019.
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Engro Fertilizers donates crop protection product to combat locust attack
KARACHI: Engro Fertilizers Limited has donated 6.7 tons of crop protection product with a market value of around Rs6 million to provincial governments to combat locust attack, a statement said on Thursday.
To combat the recent locust attack threatening the agricultural sector in Sindh and Punjab, the Government of Sindh and the Department of Plant Protection, Ministry of Food Security & Research, reached out to private sector companies to extend their support on urgent basis.
Considering the gravity and urgency of the situation and its impact on farmer community, Engro Fertilizers Limited donated the crop protection products.
Due to change of weather and recent spell of rains, the onslaught of desert locust swarms has hit rural and urban areas of Sindh and Punjab, damaging the agricultural produce in the region.
Engro Fertilizers being trusted partner of farming community of Pakistan, donated 13,430 packs of LAMBDA – Cyhalothrin, which is a world class product to fight locusts.
This is the single largest contribution by a company to counter the recent locust attack.
“We understand that the locust attack is very alarming and a grave threat to our farmers and the food security of Pakistan.
“Engro Fertilizers has always been at the forefront in fulfilling our commitment towards Pakistan’s agriculture development and we will continue to stand with the government.
“We are confident that our crop protection product will support the government and farmers to effectively overcome the locust attack.” said Nadir S. Qureshi, CEO Engro Fertilizers Limited.
With change of weather and recent spell of rains, some locust swarms have started to move towards southwest Pakistan and southeast Iran in search of warmer places.
These swarms from the summer breeding areas along both sides of the border of Pakistan and India started moving towards spring breeding areas in Southwest Pakistan and Southeast Iran lately.
The government is actively working towards curbing the impact on the crops and combats the locust attack.
The responsible corporate citizens of Pakistan like Engro Fertilizers Limited are always there to support the government and farmers sector of Pakistan in testing times to alleviate their issues.
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Honda Atlas Cars declares 50 percent drop in after tax profit
KARACHI: Honda Atlas Cars (Pakistan) Limited on Thursday announced 50 percent drop in net profit for the quarter ended September 30, 2019.
According to financial results of the company the profit after tax for the quarter (July – September) 2019 fell to Rs509.69 million as compared with the net profit of Rs1,030 million in the corresponding quarter of the last year.
The sales of the company fell to Rs11.64 billion for the quarter under review as compared with Rs25.81 billion in the corresponding period of the last year, posting 55 percent decline.
The gross profit of the company declined to Rs1.21 billion for the quarter ending September 30, 2019 as compared with Rs1.65 billion in the same period of the last year.
The company declared profit of Rs1.1 billion for the half year (April – September) 2019 as compared Rs3.24 billion in the same half of the last year.
The sales of the company during the half fell to Rs29.52 billion as compared with Rs49.67 billion in the same half of the last fiscal year.
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Cement factory shuts down on financial challenges
KARACHI: A cement factory has been closed down completely owing to financial difficulties making, according to a notices send to Pakistan Stock Exchange (PSX) on Monday.
The board of directors of directors (BoD) of Dandot Cement Company Limited in its resolution on October 30, 2019 decided to close down the factory completely while complying with all relevant laws in respect.
The company in its communication said that the company had been facing serious challenges with respect to viable operations, adequate liquidity and had incurred huge financial losses for the last many years.
“Further, the current operations of the existing plant are unable to meet the prescribed environmental standards as stipulated by the law.”
Hence, a large amount of fresh capital needs to be invested for a comprehensive Balancing, Modernization and Replacement (BMR) of the project to achieve environment standards, energy efficiency with cost effectiveness and convert the process into automated to made the company financially viable and legally compliant.
It said that the company had no finance of its own and needed to raise fresh capital to invest in the BMR project.
After the relevant finances have been arranged, the project execution will also take more than 12 months, as the current plant needs to be dismantled before new equipment can be installed therein.
This entire process will take an indefinite period of time to complete before operation can resume.
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UBL pays Rs11.59 billion against tax demand
KARACHI: United Bank Limited (UBL) has paid Rs11.59 billion against tax demand created by Federal Board of Revenue (FBR) for past multiple years.
According to financial statement submitted to Pakistan Stock Exchange (PSX) on Wednesday, the bank said that the income tax authorities had issued amended assessment orders for the tax years 2003 to 2018, and created additional tax demands (including disallowances of provisions made prior to Seventh Schedule) of Rs.11.591 billion (December 31 2018: Rs.13.119 billion), which had been fully paid as required under the law.
However, the bank has filed appeals before the various appellate forums against these amendments, the bank said, adding that where the appellate authorities have allowed relief on certain issues, the assessing authorities have filed appeals before higher appellate forums.
“Where the appellate authorities have not allowed relief the Bank has filed appeals before higher appellate forums. The management of the Bank is confident that the appeals will be decided in favor of the Bank.”
According to the financial statement, the bank said that the tax returns for Azad Kashmir (AK) and Gilgit Baltistan (GB) Branches have been filed up to the tax year 2018 (financial year 2017) under the provisions of section 120(1) read with section 114 of the Ordinance and in compliance with the terms of the agreement between banks and the Azad Kashmir Council in May 2005.
The returns filed are considered as deemed assessment orders under the law.
The bank further said that the tax authorities have also carried out monitoring for Federal Excise Duty, Sales tax and withholding taxes covering period from year ended 2007 to 2017.
Consequently various addbacks and demands were raised creating a total demand of Rs. 889 million (2018: Rs. 995 million).
The Bank has filed appeals against all such demands and is confident that these would be decided in the favor of the bank.
The tax returns for Yemen, Qatar and UAE branches have been filed upto the year ended December 31, 2018 under the provisions of the laws prevailing in the respective countries, and are deemed as assessed unless opened for reassessment.
The bank has received corrective tax assessment of QAR 1 M (Rs: 42.946 million) from the General tax Authority (GTA) in respect of tax year 2004 with no supporting calculations from GTA.
Management has requested details for 2004 assessment from GTA, however to date no response has been received. Management is confident that the matters will be decided in favour of the Bank and the possibility of any outcome against it is remote, the UBL said in its financial statement.
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National Bank declares marginal growth in profit with over 20 percent high earnings in nine months
KARACHI: National Bank of Pakistan (NBP) has declared marginal growth in after tax profit of one percent for nine months period ended September 30, 2019. However, income of the bank posted over 20 percent increase for the period.
According to a statement issued by the bank, after-tax profit for the nine-months period amounted to Rs 16.3 billion being marginally 1.0 percent higher than Rs 16.2 billion earned during the corresponding period of 2018.
Meeting of the Board of Directors (BoD) of the bank held on October 29, 2019 (Tuesday) at the bank’s Head Office in Karachi in which the BoD approved financial statements of the bank for the nine-months period ended June 30, 2019.
For the nine-month period, total income of the bank amounted to Rs 79.4 billion which is 20.3 percent higher than Rs 66.0 billion YoY. While net interest income closed at Rs 53.9 billion, non-mark-up / interest income closed at Rs 25.6 billion, up by 23.7 percent and 13.7 percent respectively.
With an increase of 26.2 percent YoY, the bank’s profit before taxation amounted to Rs 29.2 billion as against Rs 23.1 billion for September 2018.
The drop in after-tax profit is mainly attributed to higher taxation charge of 44.0 percent as compared to 30.0 percent for the corresponding period last year. Net profit translates into earnings per share of Rs 7.68 as against Rs 7.60 for the corresponding nine-months period of prior year.
Total assets of the bank amounted to Rs 3,025.4 billion which is 8.1 percent higher than Rs 2,798.6 billion as at December 31, 2018.
These represent 13.8 percent of the banking industry total assets. The bank’s market share in deposits, advances and investment is around 14 percent, 12 percent, and 15 percent respectively.
Representing 12.0 percent of the total industry loans, gross advances of the bank amounted to Rs 1,093.4 billion, marginally higher than Rs 1,059.5 billion as at December 31, 2018.
However, compared to Rs 953.3 billion of September 2018, gross advances stand increased by Rs 140.1 billion or 14.7 percent. As of September 30, 2019 deposits of the bank amounted to Rs 1,938.0 billion, depicting a drop of Rs 73.3 billion or 3.6 percent as against Rs 2,011.4 billion as of December 31, 2018.
Deposits constitute translate into ~13.5 percent share in total banking industry deposits. Customer deposits that form 87.5 percent of the bank’s total funding pool remained stable during the period and amounted to Rs 1,695.0 billion (2018: Rs 1,674.12 billion).
Year 2019 is NBP’s 70th year of service to the Nation, and it continues to deliver strong results. Its business strategy is evolving to ensure a focus on inclusive development through reaching and supporting underserved sectors including SME, Microfinance, Agriculture Finance, and finance for Micro-Housing on a priority basis.
This is in addition to the bank’s dominant role in dealing with public sector enterprises and its employees. Building a digital banking capability and a technology platform will be a central part of this strategy as will the inculcation of a performance driven culture within the institution.
For achieving the strategic goals of the bank, certain functions at the Head Office level have been re-organized to create synergies and enhance risk controls.
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PPL announces highest-ever Rs61.6 billion after tax profit with record 11 discoveries
KARACHI: Pakistan Petroleum Limited (PPL) has posted the highest-ever Rs61.6 billion after tax profit with a record number of 11 discoveries during financial year ended June 30, 2019.
This was disclosed at the 68th Annual General Meeting of PPL that was held on Monday.
Members approved financial statement for the fiscal year ended June 30, 2019 together with auditor’s report.
Final Cash Dividend of 20 percent on ordinary and convertible preference shares besides 20 percent bonus shares to ordinary shareholders and 10 percent to convertible preference shareholders was also approved.
Shamsul Islam, Chairman, BOD presided over the proceedings and shared that PPL continued to strengthen its position as a leading oil and gas company and created healthy returns for all stakeholders.
Moin Raza, Managing Director and Chief Executive Officer of the company highlighted PPL’s progress during 2019/2019, and said that the most significant was the highest ever profit after tax of Rs61.6 billion along with a record number of 11 discoveries in a year in company and partner-operated assets.
The company also drilled the first ever international exploratory well, Madain – I, in operated Block 8, Iraq, a first for a national company.
Focusing on key operational highlights, Khan mentioned drilling of 30 exploratory and development wells, including Kekra-1 in partner-operated offshore Indus G Block which encountered excellent quality reservoir but was aborted due to difficulty in locating hydrocarbons.
He also shared ongoing efforts for expanding the company’s exploration portfolio through farm in/out and acquisition of two new blocks at the recent bidding round, making a total of 47 blocks.
The company continued development activities to optimize production from existing fields that led to an average production of 977 MMscfde in 2018/2019. In this, he also mentioned commissioning of GPF-IV during phase I at Gambat South and Nashpa LPG plant as well as the highest-ever production of 228,310 tons barites from Bolan Mining Enterprises.
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Meezan Bank declares net profit of Rs11 billion for nine months
KARACHI: Meezan Bank has declared around Rs11 billion net profit (profit after tax) for the 11-month period ended September 30, 2019. The Board of Directors of Meezan Bank Limited, in its meeting, held October 24, 2019 approved the condensed interim unconsolidated financial statements of the bank and its consolidated financial statements for the nine months period ended September 30, 2019, a statement said on Friday.
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Mari Petroleum sets up subsidiary at Dubai Free Zone
KARACHI: Mari Petroleum Company Limited (MPCL) has announced establishment of a wholly owned subsidiary company at Dubai Free Zone for expansion of operations.
In a notice to Pakistan Stock Exchange (PSX) on Wednesday, the company said that its board of directors had approved establishment of a wholly owned subsidiary company of MPCL in Dubai Free Zone Area and investment of one million US dollars in the proposed subsidiary company as MPCL’s equity contribution.
The board is of the view that formation of a foreign subsidiary company is imperative for MPCL for expanding its operations across other countries in oil, gas and allied services as well as other sectors.
Further, activities related to foreign investment and arrangement of foreign financing can be handled more proactively through a company registered abroad.
The company further said that transfer/investment of funds out of the country would be subject to approval by the State Bank of Pakistan.