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Category: Corporate

  • FBR provisionally revokes sales tax registration suspension of Hascol Petroleum

    FBR provisionally revokes sales tax registration suspension of Hascol Petroleum

    KARACHI: Federal Board of Revenue (FBR) has provisionally revoked the suspension of sales tax registration of M/s. Hascol Petroleum Limited on directives issued by Sindh High Court.

    A communication sent to Pakistan Stock Exchange (PSX) said that the company had filed a constitution petition before the Sindh High Court against the FBR challenging the order issued by Large Taxpayers Unit (LTU) Karachi for suspension of sales tax registration of the company.

    “Upon directors of the Sindh High Court, the commissioner Inland Revenue, FBR has by order May 03, 2019 provisionally revoked the suspension of the sales tax registration of the company with immediate effect,” the company said, adding that consequently the sales tax registration of the company is operative and effective as of date.

  • Byco Petroleum posts 80 percent decline in net profit

    Byco Petroleum posts 80 percent decline in net profit

    KARACHI: Byco Petroleum Pakistan Ltd. has posted around 80 percent decline in net profit for nine-month period ended March 31, 2019, according to financial results presented to Pakistan Stock Exchange (PSX) on Tuesday.

    Earnings per share of the company also fell to Rs 0.14 compared to Rs 0.66 last year.

    The company attributed the decline in profit that the oil refining sector in Pakistan experienced a challenging business environment in the first nine months of the current fiscal year marked by the economic slowdown, volatile oil prices, devaluation of the Rupee, and weak upliftment of furnace oil (FO).

    The company’s gross sales increased by 32 percent from the corresponding period of the prior year to Rs 182.9 billion. Net sales increased by 35 percent to Rs 145.2 billion.

    Byco Petroleum’s gross profits fell 58 percent to Rs 3.03 billion in the first nine months of the ongoing fiscal year.

    Operating profit for the period came in at Rs 2.30 billion compared to Rs 5.85 billion in 2018.

    The company earned a net profit of Rs 719.6 million compared to Rs 3.53 billion a year earlier.

    Amir Abbassciy, CEO of Byco Petroleum Pakistan Limited, said commented on the financial result: “Despite many factors which have been working against us, including oil prices, currency weakness, and an evolving fuel mix for the nation, we are hopeful for better results in the near term.”

    Byco expresses its deepest appreciation and gratitude to the government, its shareholders, customers, and strategic partners for offering cooperation in this period.

    The company reiterates its resolve to manage this difficult time to the best of its abilities and will continue to strive to deliver optimum results for its stakeholders.

  • PSX warns PIA of suspending its share trading for non-compliance

    PSX warns PIA of suspending its share trading for non-compliance

    KARACHI: Pakistan Stock Exchange (PSX) has warned Pakistan International Airline (PIA) of suspending share trading from May 22, 2019 for non-compliance of regulations.

    In a notice issued on Tuesday, the PSX referring to the notice issued on October 09, 2018 to PIA regarding non-compliance, said that PIA has still failed to hold its annual general meeting for the year ended December 31, 2017.

    “Further, the deadline for holding the AGM for the year ended December 31, 2018 has expired on April 30, 2019, which was required to be held within 120 days from the date of closure of financial year,”

    The non-holding of AGM and non-submission of annual audited accounts for two consecutive years attracts action of suspension of trading in its shares under PSX Regulations.

    The PSX said that trading in shares of the company is required to be suspended immediately, however, in order to avoid immediate suspension in the interest of investors, PIA has been advised to rectify the defaults within 14 days i.e. by Tuesday May 21, 2019, failing which trading in its shares shall be suspended with effect from May 22, 2019.

    It further said it should be noted that upon failure of the company to rectify its default within seven trading days i.e. by Friday May 10, 2019 trading in the shares of the company shall be converted to SPOT (T + 0) settlement for the next seven trading days i.e. till Tuesday, May 21, 2019.

  • Meezan Bank posts 49 percent growth in quarterly net profit

    Meezan Bank posts 49 percent growth in quarterly net profit

    KARACHI: Meezan Bank Limited has declared 49 percent increase in profit after tax to Rs2.85 billion for the quarter ended March 31, 2019 as compared with Rs1.19 billion in the same period of the last fiscal year.

    The Earnings per Share (EPS) – on enhanced capital increased to Rs. 2.44 per share, said a statement on Monday.

    The Board of Directors of Meezan Bank Limited in its meeting approved the condensed interim unconsolidated financial statements of the Bank and its consolidated financial statements for the quarter ended March 31, 2019.

    The meeting was presided by Mr. Riyadh S. A. A. Edrees – Chairman of the Board and Faisal A. A. A. Al – Nassar – Vice Chairman of the Board, was also present.

    The Board has approved 10 percent interim cash dividend (Rs 1.00 per share) and 10 percent bonus shares in the meeting. Quarterly cash dividend has been approved for the first time in the history of the Bank and is in keeping with the Board desire to ensure that investors in Meezan Bank are well looked after. The Bank has maintained an unbroken payout record since the Bank’s listing on Stock Exchange in the year 2000.

    The growth in profitability was driven by an increase of 57 percent in net spread primarily due to the Bank’s focus on maintaining a good quality high yield earning assets portfolio.

    Profit paid to depositors also doubled, as a result of increase in deposits and increase in depositors’ profit rates. The fees and commission income of the bank grew by 18 percent driven by an increase in trade business volume handled by the bank.

    Administrative and operating expenses increased by 24 percent primarily due to rising inflation, rupee devaluation and increase in costs associated with new branches – an investment in the future.

    However, the rise in expenses was sufficiently absorbed by the growth in the bank’s income resulting in improvement in the banks income expense ratio. The bank added 16 new branches to its network during the quarter bringing the total number of branches to 676 in 189 cities.

    The Bank is now the 7th largest bank in terms of branch network as well as in terms of deposit base.

    The investments portfolio increased to Rs219 billion from Rs124 billion in December 2018 – a growth of 77 percent. During the quarter, a consortium led by Meezan Bank successfully closed Pakistan’s first-ever energy Sukuk issued by the Power Holding Private Limited, a company wholly owned by the Government of Pakistan (GoP).

    The Sukuk is guaranteed by the GoP and is eligible for SLR for the purposes of the State Bank of Pakistan (SBP). The Bank is the largest investor in this Sukuk with a participation of Rs. 85 billion.

    The Islamic financings and related assets portfolio closed at Rs494 billion with an ADR of 64 percent. The bank maintained its financing exposure in all sectors and continued to actively pursue growth in Small and Medium Enterprise (SME) / Commercial and Consumer segment.

    The NPL ratio and NPL coverage ratio stood at 1.4 percent and 137 percent respectively. The bank remains a well-capitalized institution with Capital Adequacy Ratio of 15.5 percent.

    The VIS Credit Rating Company Limited (formerly JCR-VIS Credit Rating Company Limited), in 2018, assigned the Bank an Entity Rating of ‘AA+’ (Double A Plus) for the Long Term and ‘A1+’ (A-One Plus) for the Short Term with stable outlook.

    The Subordinated Tier II Sukuk and Additional Tier I Sukuk of the Bank has been assigned a credit rating of ‘AA’ (Double A) and ‘AA-’ (Double A Minus) respectively. These ratings represent sound performance indicators of the Bank.

  • Engro Corp announces Rs7.5 billion investment in telecom infrastructure

    Engro Corp announces Rs7.5 billion investment in telecom infrastructure

    KARACHI: Pakistan’s premier conglomerate, Engro Corporation, has announced investment in telecom infrastructure.

    The investment has been approved by board of directors of the corp. in its meeting held on April 25, 2019. The BoD also approved financial results for the quarter ended March 31, 2019.

    Engro Corporation, in light of its long-term strategy, has streamlined its businesses in four verticals namely Food & Agriculture, Energy & Related Infrastructure, Petrochemicals and Telecommunications Infrastructure; focused on creating value and helping Pakistan resolve these pressing issues.

    In order to develop potential business opportunities in the telecommunications infrastructure vertical, the Company had earlier set up Enfrashare (Private) Limited.

    Enfrashare will accelerate development of the country’s connectivity infrastructure, thereby providing an opportunity for people to be part of the new digital era.

    As an initial investment, Enfrashare will engage in the acquisition & construction of shared telecom towers, provision of various telecommunication infrastructure & related services, including state of the art network monitoring solutions.

    “To enable this, the Directors have approved an investment of Rs7.5 billion in this vertical,” a statement said on Friday.

    Ghias Khan, President & CEO Engro Corporation said: “Investments in energy, telecommunications infrastructure, petrochemicals and food and agriculture can accelerate change, help towards increasing exports, substitution of imports, industrialization in the country, job creation and hence build a stronger Pakistan.”

    “Engro Corporation will continue to explore investment opportunities across these four identified verticals with a focus to improve the lives of our stakeholders and communities in which we live and work with a culture founded on truth, trust and a relentless pursuit of excellence.”

    Furthermore, to continue building on Engro’s experience in the Petrochemical sector and keeping with its strategic ambitions that the Company will seek investment opportunities in this vertical, the Board of Directors approved the commencement of a feasibility study of a polypropylene facility based on a propane dehydrogenation plant.

    This will also enable the company to initiate discussions with potential partners and/or stakeholders for developing this project.

    Investment in the Petrochemical sector will create opportunities for both substituting the imports & enhancing the export potential, thus help in building foreign currency reserves of the country.

    Simultaneously with a view to expand its footprint outside Pakistan and to explore potential trading opportunities, the Board has also approved the acquisition of 100 percent shares of Engro Eximp FZE, a wholly owned subsidiary of Engro Fertilizers Limited, for Rs1.76 Billion (subject to adjustments at the date of closing of the transaction and corporate approvals).

    The company’s consolidated revenue grew by 21 percent in comparison to the prior period, driven by higher Urea sales in the Fertilizer business.

    The Company posted a consolidated profit-after-tax (PAT) of Rs6,565 million compared to PKR 6,837 million for the prior period.

  • HBL declares 32 percent decline in net profit for first quarter

    HBL declares 32 percent decline in net profit for first quarter

    KARACHI: Habib Bank Limited (HBL) has announced 32 percent decline in profit after tax to Rs3.177 billion for first quarter of year 2019 as compared with Rs4.68 billion in the same quarter of the last year.

    The earnings per share also declined to Rs2.08 for the period as compared with Rs3.12 in the same quarter of last year.

    Analysts at Arif Habib Limited said that though the profit declined in first quarter as compared with the same quarter of the last year but it grew by 26 percent on quarter on quarter basis (QOQ) despite higher tax rate this quarter.

    Major drivers for earnings this quarter that have contributed to a remarkable 116 percent QoQ increase in PBT include a total gain on foreign exchange income and derivatives compared to a hefty loss last quarter.

    Moreover a net reversal was booked this quarter against a heavy provisioning expense booked last quarter. A dividend of PKR 1.25/share was also announced for the quarter.

    NII of the bank settled at PKR 23.4bn for 1QCY19, rising 19 percent YoY as 63 percent higher interest expense was offset by the 39 percent rise in mark-up income. NII registered an uptick of 12 percent QoQ as well.

    NFI of the bank depicted healthy improvement of 22 percent YoY / 60 percent QoQ. The bank booked a profit on FX income (and derivatives) of a total PKR 637mn compared to a staggering loss of PKR 3bn during 4QCY18 and PKR 478mn during 1QCY18. Moreover, fee income of the bank showed an impressive jump of 18 percent YoY.

    The bank booked a net reversal of PKR 83mn compared to a hefty provisioning expense of PKR 3.2bn during 4QCY18 (owing to impairment charge on the equity book).

    Higher OPEX (+21 percent YoY / 21 percent QoQ) owing to NY remediation/business transformation costs continued for the bank.

    Effective tax rate was set at 62 percent for 1QCY19 vis-à-vis 36 percent SPLY due to additional super tax being booked this quarter on CY17 earnings.

  • Shell Pakistan declares 81 percent decline in net profit

    Shell Pakistan declares 81 percent decline in net profit

    Shell Pakistan Limited announced a significant 81% decline in its profit after tax, as revealed by the company’s financial results for the quarter ended March 2019, approved by the board of directors in their meeting held on Tuesday.

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  • PSO declares 55 percent decline in net profit for nine-month period

    PSO declares 55 percent decline in net profit for nine-month period

    KARACHI: The net profit of Pakistan State Oil (PSO) has declined substantially by 55 percent to Rs5.92 billion for the period July – March 2018/2019 as compared with Rs13.22 billion in the corresponding period of the last fiscal year.

    According to financial results submitted to Pakistan Stock Exchange (PSX) on Monday for nine-month period ended March 31, the earning per share of the company also fell to Rs15.15 as compared Rs33.80 in the same period of the last year.

    The gross sales of the company was flat at Rs950.93 billion during July – March 2018/2019 as compared with Rs930.38 billion in the same period of the last fiscal year.

    The gross profit of PSO reduced to Rs23.88 billion for the nine-month period ended March 31, 2019 as compared with Rs28.87 billion in the same period of the last fiscal year.

    The profit of the company for the quarter January – March 2019 also fell to Rs1.67 billion as against Rs4.70 billion, posting 64 percent decline.

    Analysts at Topline Securities said that the company recorded loss of around Rs2.3 billion on petrol, while, gain of around Rs2 billion and Rs95 million on Furnace Oil (FO) and HSD respectively.

    Further, volumetric decline of 6 percent YoY in HSD/Petrol and 31 percent YoY decline FO sales also weighed on overall gross profits of the company.

  • Ghandhara Nissan declares 44 percent decline in net profit for nine-month period

    Ghandhara Nissan declares 44 percent decline in net profit for nine-month period

    KARACHI: Ghandhara Nissan Limited, the assembler of light commercial and heavy vehicles in Pakistan, has posted significant decline in net profit by 44 percent for nine-month period ended March 31, 2019.

    The company submitted its finance results for July – March 2018/2019 to Pakistan Stock Exchange (PSX) on Monday.

    The company declared Rs135.92 million profit after tax for the period as compared with Rs242.85 million for the corresponding period of the last fiscal year.

    The earnings per share also fell to Rs2.38 for the period under review as compared with Rs4.91 in the same quarter of the last fiscal year.

    The revenue off the company was stagnant at Rs1.7 billion for the first nine months of the current fiscal year as compared with Rs1.74 billion in the same period of the last fiscal year.

    After excluding the cost of sales the gross profit of the company was at Rs300.89 million as against Rs358.95 million in last year.

    The profit before taxation of the company stood at Rs178.84 million for the nine-month period ended March 31, 2019 as compared with Rs316.82 million in the same period of the last fiscal year.

    The profit after tax for the third quarter (January – March) 2019 was sharply declined by 85 percent to Rs6.87 million as compared with Rs45.8 million declared for the same quarter of the last year.

  • Zubyr Soomro appointed as NBP board chairman

    Zubyr Soomro appointed as NBP board chairman

    KARACHI: Zubyr Soomro has been appointed as chairman of Board of Directors of National Bank of Pakistan (NBP), said a notice to Pakistan Stock Exchange (PSX) on Thursday.

    A day earlier the finance division notified appointment of chairman and directors on the board of NBP with immediate effect.

    According to the notice the following members have been appointed on the NBP board:

    01. Zubyr Soomro, chairman on vacant slot

    02. Mohammad Sohail Rajput AFS (IF/Inv), Finance Division, Director representing the government. He has replaced A Akbar Sharifzada, Ex-AFS, Finance Division

    03. Tawfiq Asghar Hussain, Director, who replaced Muhammad Imran Malik

    04. Ms. Sadaffe Abid, Director, who replaced Asad Munir

    05. Zafar Masud has been appointed as director on the vacant slot

    06. Imam Bakhsh Baloch has been appointed as director on the vacant slot