Corporate results: Fauji Fertilizer produces Rs.8.2 billion profit

Fauji Fertilizer Company (FFC) has posted a net profit of Rs8.2 billion in the first half of the calendar year 2014 (1H CY14), down 14% compared to Rs9.5 billion in the same period of previous year. Earnings per share (EPS) remained at Rs.6.41 in the 1HCY14 against an EPS of Rs7.46 in the same period of the previous year. Despite the company clocking in its lowest offtake for 16 months in April 2014, the topline of FFC grew year-on-year by 5%.

However, increased cost of sales due to the company’s inability to pass on the incremental costs from augmentation in the Gas Infrastructure Development Cess (GIDC) squeezed the gross margins of the company to 39.8% in 1HCY14, down by 760 percentage points, an AKD research reported on Thursday.In addition, a lower ‘other income’ on the back of an absent dividend from Fauji Fertilizer Bin Qasim Limited (FFBL), alongside higher financial charges resulted in a 14% year-on-year dip in the net earnings of the company.Despite this, FFC declared a cash dividend of Rs3.4 per share during the second quarter of the calendar year 2014 (2QCY14), taking the 1HCY14 dividend payout ratio to nearly a 100%.The revenue levels of the company posted a year-on-year growth of 5%. Other income, however, declined by 5% year-on-year to Rs1.81 billion due to an absence of dividend income from FFBL and slightly higher financial charges…..EXPRESS TRIBUNE

 

FFBL’s earnings go down 56%

Fauji Fertilizer Bin Qasim (FFBL) on Wednesday announced that it earned after-tax profit of Rs802 million in the first half of calendar year 2014 (1HCY14), down 56% compared to Rs1.82 billion in the same period of previous year.Earnings per share remained at Rs0.86 against Rs1.95 in the corresponding period of previous year.

Along with the result, the company’s board of directors announced an interim cash dividend of Rs1 per share.The earnings dropped in the wake of higher gas curtailment, leading to a decline in production and sales of fertiliser, both urea and diammonium phosphate (DAP). The company’s inability to pass on the impact of rising cost on account of increase in gas cess from January this year and depressed primary margins on DAP sales also played their part, the report added. Revenues declined 22% year-on-year to Rs15.75 billion in 1HCY14 largely due to 13% and 17% year-on-year fall in urea and DAP offtake respectively. Urea sales fell to 102,000 tons during 1HCY14 compared to 117,000 tons in 1HCY13. DAP offtake was recorded at 213,000 tons against 256,000 tons last year.

The weak sales were mainly due to higher gas curtailment at the plant averaging 56% (versus 47% in 1HCY13). On quarter-on-quarter basis, revenues dropped to Rs9.71 billion. Finance cost remained on the lower side and fell 36% year-on-year to Rs397 million during 1HCY14. This sharp decline was due to foreign exchange gains of Rs.160 million booked on the company’s dollar-denominated payables on account of rupee’s rise against the dollar by 7% during the period. “Other income stood at Rs230 million, which was lower than our estimate of Rs435 million mainly due to the loss posted by the company’s joint venture Pakistan Maroc Phosphore (PMP),” the report said…….EXPRESS TRIBUNE

HBL posts a healthy result

The after-tax profit of Habib Bank (HBL) for the six-month period ending June 30 increased by 38.6% over the comparable period of the last year, according to the consolidated financial results released by the country’s largest commercial bank in terms of assets. Pre-tax and after-tax profits of HBL clocked up at Rs22.1 billion and Rs14.6 billion, respectively, for the six-month period. Last year, pre-tax and after-tax profits were Rs15.9 billion and Rs10.5 billion, respectively, for the comparable period. The rise of 38.6% in after-tax profit resulted in the earnings per share (EPS) of Rs9.88 for the six-month period ending on June 30 as opposed to the EPS of Rs7.07 recorded last year.

The board of directors of HBL also declared a second interim cash dividend of Rs2.25 per share for the current year ending on December 31. The group’s deposits increased 3.5% to Rs1.45 trillion on June 30 as opposed to Rs1.40 trillion recorded at the end of 2013. The bank delivered an improvement in the deposit mix, with current accounts showing growth of 22.5% to Rs504 billion, thus improving the CASA ratio to 76.7% on June 30. In contrast, the CASA ratio stood at 73% on December 31, 2013. Overall deposit growth remained strong despite a well-managed reduction of high-cost deposits, according to a statement by HBL. Overall, the balance sheet size grew by 1.5% to Rs1.741 trillion…… “The fundamentals of the group remain very strong with growth in balance sheet size, improving core CASA deposits, healthy contribution from both mark-up and non-mark-up income, effective risk management and strong capitalisation,” the statement said….. EXPRESS TRIBUNE

1HCY14: PTCL reaps high profits

Supported by higher revenues from its broadband and cellular business, the Pakistan Telecommunication Company Limited (PTCL) has managed to earn profits of more than Rs.1 billion every month in the first half of 2014, according to its financial results, released on Tuesday. PTCL’s after-tax profit increased to Rs.8.2 billion or Rs.1.62 per share for six months ending June 2014. This translates to an increase of 4.7% compared with Rs7.8 billion or Rs1.51 per share it earned in the corresponding period of 2013.

The financial results were accompanied with an interim cash dividend of Rs.1 per share, ….The broadband giant grossed Rs68.5 billion in sales during the review period, up 4.7% when compared with Rs65.4 billion it grossed in the same period last year.“We attribute an increase in revenues to the surge in cellular and broadband subscribers with major increase in EVO wireless segment,” Topline Securities said in a statement. “Moreover, other income increased 3.4% to Rs2.5 billion while financial charges decreased to Rs1.2 billion in the first half of 2014, down 30%,” it said, adding the company’s cost of sales surged to Rs42.5 billion. Resultantly, gross margins improved by 1% point to 37.3% .

On a quarterly basis, the company’s revenues increased by 5.6% to Rs35.1 billion compared with Rs33.2 billion of April-June quarter of 2013, the Topline report said. “Although, a monthly average of long distance international (LDI) minutes witnessed a decline of around 11%, improvement in revenues is linked to surge in cellular and broadband subscribers.” The report said that 8.6% higher cost of sales offset incremental benefit of revenue growth for the quarter. “As a result, gross profits remained stagnant at Rs12.6 billion while gross margins declined by 2% points to 35.8%.” Higher admin, selling and distribution costs further dented revenue, … admin cost increased by 17% to Rs5 billion while selling and distribution cost increased by 25% to Rs2.4 billion. In the second quarter of 2014, the company posted consolidated earnings of Rs3.9 billion or Rs0.76 per share as compared to Rs4.5 billion or Rs0.89 per share in the same quarter last year, ….. EXPRESS TRIBUNE

DG Khan Cement interested in acquiring Lafarge

DG Khan Cement Company (DGKC) – country’s third largest cement maker – has expressed its interest to acquire 100% stake of Lafarge S.A in Lafarge Pakistan Cement Limited (LPCL) and appointed a manager for the process, according to a company notice sent to the Karachi Stock Exchange (KSE) on Wednesday. LPCL has added 2.4 million tons per annum to its production with its plant located in Chakwal, Punjab. At present, Lafarge S.A has a 73% stake in LPCL. Interestingly, Vision Holdings Middle East (currently holding 47% stake in Pioneer Cement) has also shown interest in the same acquisition.

With one plant in Chakwal, DGKC is the third largest cement manufacturer of Pakistan having the capacity of 4.02 million tons and is running at an optimal capacity of 98%. Last year, the company announced to setup a cement- clinker plant of 2.6 million tons at Hub, Balochistan Pakistan.If DGKC does acquire LPCL, it will become the second largest cement producer of Pakistan (ahead of Bestway Cement). Moreover, it is expected that DGKC may temporarily shelf its plans to set up a plant in the south. Since DG Khan’s interest in expansion plans had recently sent shock waves in All Pakistan Cement Manufacturers Association (APCMA) – a lobbying group for cement sector – this will increase the comfort level of the market on the sustainability of the pricing arrangement within the sector in the medium term, ….

DGKC will have to consider financing the acquisition via debt. We believe DGKC has ample room to leverage its balance sheet with interest bearing debt assets ratio currently at 9% with total interest bearing debt at Rs6.11 billion, read the report.The report predicted the possibility of the company issuing rights shares. “As of March 2014, DGKC’s cash balance stood at Rs451 million, while we expect fiscal year 2014 FY14E-15F average annual cash generation of Rs9-10 billion,” …. EXPRESS TRIBUNE

HUBCO profit down 22% in the third quarter

Hub Power Company (Hubco) on Wednesday announced a 22.6% decline in net profits for the January-March quarter of fiscal 2013-14 as the company had to cut back electricity production because of overhauling work of its units. Profit for the quarter was Rs2.057 billion against Rs2.661 billion it posted in the same period of the previous year. The company did not announce any cash or bonus dividend. In the nine months to March 2014, the profit was down 32.5% to Rs4.993 billion. Topline Securities analyst Vahaj Ahmed said that the company’s load factor for the Karachi plant was 65.7% in the nine months compared with 75.3% in the same period last year. Load factor Narowal plant stood at 82.2%. Load factor is the capacity at which a power plant is operated.“This decline in profits is mainly due to the expenditure on major overhauling of boilers, one of which was down for maintenance,” ….EXPRESS TRIBUNE

Pakistan State Oil’s profit soars 107%

Pakistan State Oil (PSO), the country’s largest oil marketing company, has posted earnings of Rs19.4 billion in the first nine months of financial year 2013-14, up 107% compared to Rs9.4 billion in the corresponding period of previous year. With a muted growth of 4% in volumes, the growth in profit came primarily as a result of higher other income that soared 304% in the July-March period, Shajar Research said in a report on Tuesday. The growth in other income stemmed from realisation of late payment mark-up and profit on Pakistan Investment Bonds issued to the energy sector.

In the third quarter alone, PSO recorded earnings of Rs3.6 billion, an increase of 18% from the same period of previous year, but down 55% from the previous quarter.In the nine-month period, gross sales crossed the trillion mark and stood at Rs1.02 trillion compared to Rs930 billion in the same period of last year, representing a growth of 10%, ….Depreciation of the rupee against the US dollar by 6.5% in the first half was followed by an appreciation of 7% in the third quarter, resulting in a net exchange loss of Rs1.2 billion…. EXPRESS TRIBUNE

 

DIVIDENDS/RESULTS FOR APRIL 2014 – II

PAKT : EPS : 4.87

DAWH : EPS : 2.16

MCB : 30% CASH – EPS : 5.08

FFBL : EPS : 0.05

PTC : EPS : 0.85

FCCL : EPS : 1.49

EFERT : EPS : 1.12

PPL : EPS : 19.32

NPL : 10% CASH – EPS : 6.05

MLCF : EPS : 4.57

SHEL : EPS : 5.97

DGKC : EPS : 9

KOHC : EPS : 15.72

CHCC : EPS : 9.85

LUCK : EPS : 26.58

ABL : EPS : 12.5% CASH – EPS : 2.83

NML : EPS : 16.90

BAFL : EPS : 0.84

OGDC : 22.5% CASH – EPS : 21.14

FFC : 30% CASH – EPS : 3.58

ENGRO : EPS : 3.91

AICL : EPS : 1.80

HUBC : EPS : 4.32

Engro makes a strong comeback

Engro Corp – the biggest conglomerate in Pakistan – has posted a record consolidated profit after tax of Rs8.18 billion for the year ending on December 31, 2013, up 529% compared to a depressed profit after tax of Rs1.3 billion in 2012. Earnings per share (EPS) of the company jumped to Rs16.01 for the year ended December 31, 2013 compared to an EPS of Rs2.61 in 2012. The comp any revenue jumped sharply to Rs155.4 billion in 2013 against Rs125.2 billion in 2012. The record profitability was achieved by a turnaround in its fertiliser business coupled with an impressive performance by Engro Polymer, a healthy contribution by Engro Vopak and EXIMP’s return to profitability.

Engro Fertilizer

During 2013, the company made a profit after tax of Rs5.49 billion compared to a loss of Rs2.93 billion last year. Engro Fertilizer’s revenue for the year was Rs50.12 billion compared to Rs30.62 billion in 2012. Sales of the company’s blended fertilisers (Zarkhez and Engro NP) for the year increased by 21% to 95,000 tons compared to 80,000 during 2012. Pakistan’s overall potash market remained stable at 20,000 tons (nutrient basis) during 2013. The company undertook an Initial Public Offering (IPO) of 75 million ordinary shares in fourth quarter of 2013 (4QCY13).

Engro Foods

2013 was a test of the company’s resilience due to external challenges, coupled with distribution issues, which impacted its volumes and profitability. Engro Foods’ revenues declined from Rs40.16 billion in 2012 to Rs37.89 billion in 2013, while net profits decreased from Rs2.59 billion in 2012 to Rs1.09 billion in 2013.

Engro EXIMP

EXIMP’s revenues during 2013 were Rs32.85 billion compared to a revenue of Rs20.97 billion in 2012. The company’s consolidated profit after tax stood at Rs59 million in 2013 as compared to a loss of Rs426 million in 2012. The profitability of fertiliser and commodity trade was off-set by losses in the rice business despite improvement in operational parameters.

Engro Powergen

Engro Powergen Qadirpur earned a net profit of Rs1.45 billion during 2013 compared with Rs2.1 billion in year 2012. During the year 2013, the Qadirpur Plant demonstrated billable availability of 83.1%. It dispatched a total Net Electrical Output of 1,334 Gigawatt hours to the national grid with a load factor of 71.7% as compared to 93.8% in 2012. Overdues from Pakistan Electric Power Company stood at Rs1.248 billion as on December 31, 2013, against overdues of Rs5.787 billion as on December 31, 2012. Overdue amount payable to Sui Norther Gas Pipeline Company on December 31, 2013 was Rs386 million compared to Rs2.68 billion in 2012.

Polymer and Chemicals

During 2013, the company posted a profit of Rs707 million compared to Rs77 million in 2012. Revenue increased from Rs20.60 billion in 2012 million to Rs24.78 billion in 2013. The company achieved its highest ever production of vinyl chloride and caustic soda during the year.

Vopak

During the year, the company modified its ACN tanks which were unused since 2010 and brought these under use for storage of EDC for Engro Polymer. Actual throughput for the year was 1,135 KT compared to 1,101 KT in 2012. The company’s revenue was Rs2.05 billion in 2013 as compared to Rs2.37 billion in 2012. The profit after tax for 2013 was Rs1.21 billion compared to Rs1.48 billion in 2012.

LNG

Elengy Terminal Pakistan Limited (EPTL), a subsidiary of Engro Corporation Limited, won the government’s tender for Fast Track LNG in November 2013 and is poised to sign the contract this month….. EXPRESS TRIBUNE

MCB AND ALLIED BANK RESULTS

Net profit of MCB Bank for 2013 clocked in at Rs21.5 billion, 4% higher than its earnings of Rs20.7 billion last year, according to the bank’s unconsolidated financial results released on Tuesday. In the last quarter of 2013, MCB’s earnings went up 8% year-on-year mainly on the back of its non-markup income and provisioning reversals. The bank also announced a cash dividend of Rs3.5 per share and 10% bonus shares….. Data released by the State Bank of Pakistan (SBP) says the net spread of MCB in the first nine months of 2013 remained 2.9% as opposed to 3.5% in the comparable period of 2012. Net interest income of MCB dipped 7% and 3% on an annual and quarterly basis respectively, according to the unconsolidated profit and loss statement. However, non-markup income posted strong growth of 22% year-on-year due to gains from the sale of Unilever Pakistan and Adamjee Insurance shares, Global Securities said. “Improved recoveries of non-performing loans (NPLs) helped the bank register provisioning reversal of Rs2.8 billion in 2013 against the provisioning expense of Rs478 million in the preceding year. However, the positive impact of provisioning reversal was contained by an increase in non-markup expense that surged by 9% year-on-year, which is slightly higher than the CPI inflation of 7.68% year-on-year in the stated period,”

ABL EARNINGS :

Higher net interest income and ‘tax add-back’ lifted the net profit of Allied Bank (ABL) to Rs14.6 billion in 2013, up 26% from the preceding year. According to Standard Capital Securities, ABL’s net interest income increased 18% to Rs21.7 billion compared with last year’s Rs18.4 billion mainly because of higher deposits and an expanding branch network. “In spite of higher earnings, the bank slashed its payout ratio to 37% for 2013. It announced Rs1.5 per share cash dividend and 10% bonus shares in the final quarter,” it said. The bank recorded a decrease of 30% in non-core business, which stood at Rs9.6 billion in 2013. ABL is also doing well with regard to non-performing loans (NPLs) and recorded a 13% lower provisioning cost to Rs565 million,…. EXPRESS TRIBUNE

 

Engro Fert back in black with Rs.5.49 billion profit

Engro Fertilizer − part of Pakistan’s largest conglomerate Engro Corp − returned to profit and posted net earnings of Rs5.49 billion for the year ended December 31, 2013 compared to a loss of Rs2.93 billion in the previous year. Earnings per share (EPS) rose to Rs4.66 against a loss per share (LPS) of Rs2.59 in the previous year. Sales of the company jumped by a significant 64% to Rs.50.12 billion compared to Rs30.62 billion in 2012. The growth in earnings is primarily attributable to better production at Engro’s Enven plant, which was shifted to the Mari gas system. Moreover, gas supply from Guddu gas field increased after July 2013. According to Engro, both plants of the company run at around 80% of capacity for most part of the second half (July-December) of the year. It is because of this reason that Engro reported urea off-take at 1.56 million tons, up 66% compared to 0.94 million tons in 2012. Owing to continuous operations since July, higher operational efficiencies enhanced gross margins by 12 percentage points to 44% in 2013 from 32% a year earlier.

Moreover, other income increased two times to Rs1.1 billion while financial charges dropped 19% to Rs8.7 billion, lending support to the bottom line of the company. On a quarterly basis, profit stood at Rs2.3 billion (with EPS at Rs1.74) in the fourth quarter compared to profit of Rs43 million (with EPS at Rs0.03) in the same quarter of 2012. …. EXPRESS TRIBUNE

DIVIDENDS / RESULTS FOR FEBRUARY 2014

PTC :  10% CASH – EPS : 2.49

EPCL :  EPS : 1.07

EFERT : EPS : 4.66

CHCC :  10% CASH + 10% BONUS. EPS : 7.43

ABL :  15% CASH + 10% BONUS . EPS : 14.07

MCB :  35% CASH + 10% BONUS . EPS : 21.34

DGKC :  EPS : 6.09

KOHE :  20% CASH . EPS : 2.96

NPL : 10% CASH . EPS : 3.77

ENGRO : SPECIAL DIV. 10% EFERT SHARES

NML :  EPS : 10.96

KOHC : EPS : 9.54

KAPCO : 27.5% CASH . EPS : 3.23

FCCL : 7.5% CASH . EPS : 0.94

HUBC : 25% CASH . EPS : 2.54

NCL : EPS : 6.33

NCPL : 15% CASH . EPS : 3.25

PAKT : 60% CASH . EPS : 12.33

PSO :

PRL :  EPS :   – 35.74

UBL :  40%  CASH . EPS : 15.21

ICI : EPS : 8.29

MLCF : EPS :  2.81

OGDC : 20% CASH . EPS : 15.63

LUCK :  EPS : 15.96

NBP :

FFC sees a slight dip in profit

Fauji Fertilizer Company (FFC) has posted a net profit of Rs.20.13b in the year ended on December 31, 2013, down 3.5% from Rs20.86 billion in the previous year. Earnings per share (EPS) of the company were at Rs15.83 in year 2013, down 3% compared to an EPS of Rs16.38 the in previous year. The result was also accompanied by a final cash dividend of Rs.4.00 making a full year cash dividend of Rs15.35 per share.Due to stagnant volumetric off-take of 2.4 million tonnes and stable urea price in 2013, the company’s sales revenue remained flat at Rs74 billion.

However, a higher increase in cost due to rise in fuel cost contracted gross margins by 2 percentage points to 46% in 2013 as against 48% in previous year, ……Furthermore, higher distribution cost (up 11% to Rs6.1 billion) also heavily restricted bottom-line of the company. In fourth quarter of 2013 (4Q2013), FFC posted an EPS of Rs4.12, down 25% as against an EPS of Rs5.53 in the same period last year as company sold 21% more urea in 4Q2012 due to heavy stocks of previous months…...EXPRESS TRIBUNE

Fauji Fertilizer Bin Qasim posts rise in earnings

Fauji Fertilizer Bin Qasim (FFBL) on Monday posted a profit after tax of Rs5.6 billion in the year ending on December 2013 (CY2013), up 30% compared to a profit of Rs4.3 billion in the same period the previous year. Earnings per share (EPS) for the company jumped to Rs6.01 compared to Rs4.64 in the period under review. The company also announced a final dividend of Rs.2.25 making full year cash dividend of Rs5 per share (Rs4.5 in year 2012).

The company’s revenue increased by 14% to Rs54.5 billion as against Rs47.9 billion posted in the previous year. The increase in di-ammonium phosphate (DAP) off-take is the key reason behind the rise in the revenue which increased by 26% to 770,000 tons in 2013. However, urea off-take declined by 4% as compared to the last year.

Other income of the company fell to Rs494 million in 2013 against Rs1.04 billion in the same period last year, primarily due to loss of Rs163 million from its JV Pakistan Maroc Phosphore (PMP) compared to the profit of Rs6.7 million in the last year.Only in the fourth quarter of 2013 (4Q2013), the company posted an EPS of Rs2.48, up 5% compared to an EPS of Rs2.36 in 4Q2012.

AKD Securities said in a report that a margin contraction is expected in the first quarter of calendar year 2014 (1QCY14) as a result of the recent hike in Gas Infrastructure Development Cess (GIDC) and scheduled gas outage expected till February 2014, while a recent uptick in international DAP price may lead to a recovery in local price going forward…. EXPRESS TRIBUNE

Fall in profits leaves sour taste for Engro Foods

Engro Foods on Friday announced disappointing results and posted a profit-after-tax of Rs870 million for the year ending December 2013, down by 66% compared to Rs2.6 billion in the same period of previous year. The earnings per share (EPS) dropped to Rs1.14 compared to EPS of Rs3.43 during the period under review.

Engro Foods − a subsidiary of Engro Corp, Pakistan’s largest private-sector conglomerate − saw weak sales during the year that declined to Rs37.9 billion, down by 6% year on year (YoY) against sales of Rs40.2 billion. Last year was a particularly tumultuous one for the company with the collapse of its distribution network, and an unexpected change in leadership which saw Sarfaraz Rehman take up his old post.The losses are attributable to Engro Foods’ Canada business (Netherlands BV, whose takeover was completed on December 16, 2013) where the company lost an estimated of Rs29 million, JS Global Research reported on Friday.

In fourth quarter (4Q) alone, the company booked a loss both on a reported and recurring basis primarily attributable to depressed gross margin of 13% in 4Q of CY13. In the same quarter, the company recorded a recurring pre-tax loss of Rs360 million (estimated 4Q recurring loss per share (LPS) at Rs0.45). Analysts say the depressed sales of the company are mainly because of the distribution issues facing the company, price competition with Nestle and overall slowdown in UHT milk market.“Corrective steps undertaken by the management for the company’s distribution issues are likely to start depicting results from the next quarter,” an AKD Research report said. “For calendar year 2014, the company is expected to be back on a growth path with an earnings of Rs2.0 billion.”….EXPRESS TRIBUNE

PPL posts 19% rise in first-half

Pakistan Petroleum Limited (PPL) on Wednesday announced an 18.8% rise in net profits for the six-month period ending December 2013 on the back of higher oil production, better prices and depreciation of the rupee, analysts said. It also announced an interim cash dividend of Rs5 per ordinary share and Rs3 on fully paid preference shares. Profit increased to Rs26.5 billion for the period, compared with Rs22.3 billion in the corresponding period last year, but it came at the cost of relatively lower field expenditure on finding new petroleum reserves.

The company’s revenues were up 15.4% to Rs58.5 billion despite a slight reduction in gas production, according to Global Research. “Revenues increased mainly due to rise in oil production and higher realised prices,” it said. Citing data, it said PPL’s oil production was up by 6% in quarter-on-quarter basis to 12,357 barrels per day between October and December 2014. This increase in production came from the company’s Nashpa-4 well, it said. “On a year-on-year basis, oil production for PPL has reportedly improved by 24% to 2.16 million barrels,” it said…. EXPRESS TRIBUNE