Maple Leaf’s profit rises 40% to Rs 4.84 billion

Maple Leaf Cement on Monday announced a net profit of Rs4.84 billion in the financial year ended June 30, 2016, up 40% compared to Rs3.45 billion in the previous year, according to a company notice sent to the Pakistan Stock Exchange.Earnings per share jumped to Rs9.18 in FY16 compared to Rs6.55 in the previous year. “This result was above market estimates,” Topline Securities commented.The results were accompanied with an interim cash dividend of Rs2.5 per share, taking total pay-out for FY16 to Rs4 per share….The company also announced that it would set up a grey cement production line (brownfield) of 2.1 million tons. This would take its total production capacity to 5.3 million tons.

In the fourth quarter of FY16, Maple Leaf recorded revenues of Rs6.5 billion, up 15% year-on-year. This was mainly on the back of higher local cement sales, up 16% year-on-year to 0.7 million tons.“We attribute this to lower cost of production as a result of subdued commodity prices and cheap transportation fares (Maple Leaf is now using railway channels for coal transportation from Karachi Port to its production facility in the north),” the report added.Financial charges in the fourth quarter dropped 92% year-on-year to Rs16 million.Pre-tax profit increased 64% year-on-year to Rs2.2 billion in the fourth quarter. However, higher effective tax rate, which was up 20 percentage points to 38%, restricted profit growth to 24%…. EXPRESS TRIBUNE

Hubco posts Rs. 2.8 billion in profit during Oct-Dec

The Hub Power Company reported an after-tax profit of Rs2.8 billion or Rs2.38 per share for the quarter ended December 31, 2015, down 10.5% compared with Rs3.2 billion or Rs2.66 per share it earned in the same quarter of 2014….the Karachi-based power generation company also announced an interim cash dividend of Rs4.5 per share for the quarter under review.

The result was in line with market expectations, according to Topline Securities, which attributed the fall in the company’s net earnings to a decline in its sales – the company’s revenues clocked in at Rs23.3 billion during October-December period, down 31% when compared with Rs33.8 billion of the corresponding period of 2014.The recent slump in international crude oil prices resulted in a decline in furnace oil prices, Topline Securities said, explaining the fall in the company’s volumes during the quarter under review. Average furnace oil prices were 46% in the fourth quarter of 2015 when compared with that of the corresponding period of 2014.

Gross profit for the quarter improved by 3.7 percentage points to 18.5%, the report said. “The improvement can be attributed to normalisation of Operation & Maintenance (O&M) expense as overhaul of two boilers was carried out last year,” it said, adding the company has taken over O&M activities of its base plant at Hub through Hub Power Services Ltd (HSPL), a wholly owned subsidiary of the company.However, the company’s finance cost declined by 33% on year-on-year basis to Rs2.1 billion during July-December period, BMA Capital said in its report.It added that the lower finance cost is a factor of improved liquidity position of the company amid decline in furnace oil prices and subsequent improvement in the circular debt position and lower interest rate in the country.

On quarter-over-quarter basis, the company’s top-line declined by 13.5% while gross profit margins improved by 2 percentage points, Topline said in its report, adding they expect value addition from coal-based power plants being set up by the company at existing Hub plant site and investment in Sindh Engro Coal Mining Corporation (SECMC), which will be key catalysts to the company’s earnings going forward….. EXPRESS TRIBUNE

Rs. 8.12 per unit tariff approved for Hubco’s power project

The National Electric Power Regulatory Authority (Nepra) on Tuesday approved the upfront tariff for $1.9 billion coal-based power project of China-Hub Power Company at a levelised tariff of 8.36 cents (Rs8.12) per unit for 30 years. The 1,320-megawatt project is a joint venture of Hub Power Company (Hubco), which currently operates the country’s largest 1,290MW thermal power station at Hub in Balochistan besides other smaller projects, and China Power International Holding Limited (CPIH), a wholly-owned core enterprise of China Power Investment Corporation.The project is one of the priority projects of $46bn China-Pakistan Economic Corridor (CPEC). The joint venture company — China Power Hub Generation Company (Pvt) Limited (CPHGCL) — will jointly develop two 660MW plants near Hubco’s existing plant to run on imported coal.

In its determination, Nepra said the average tariff for one unit of 660MW would have an average tariff of 9.064 cents per unit for first 10 years that would subsequently come down to an average of 7.042 cents for 11-30 years. The levelised tariff for 30 years was approved at 8.36 cents per unit….The application was processed in accordance with the relevant provisions of the regulations and finally granted upfront tariff for 660MW on foreign financing….The project will have a debt-equity ratio of 80:20. Its cost will go up to $2.4 billion because of an ancillary coal jetty to enable transportation of imported coal.

The company expects to achieve the financial close of the project by June 2016 and complete the project in 2020. The Hubco will have 49pc shares in the project and China International 51pc….. DAWN

OGDCL suffers, reports Rs. 16 billion profit

Amid the slump in international crude oil prices, the Oil & Gas Development Company Limited (OGDCL) saw its net earnings decline by almost one-fifth to Rs16 billion in October-December quarter of 2015,…The country’s largest publicly listed company based on market capitalisation (Rs451 billion or $4.3 billion in today’s exchange rates), OGDCL reported a net profit of Rs15.9 billion or Rs3.71 per share for the quarter ended December 31, 2015, down 18% compared to Rs19.5 billion or Rs4.54 per share it earned in the same quarter of the previous year.

The average basket price, in the second half of 2015, plummeted to $47.73 from $91.86 of the corresponding period of last year, the company said in a notice to the Pakistan Stock Exchange. As a result, OGDCL’ average realised prices decreased to $43.09 per barrel during the review period compared to $76.57 per barrel of the comparable period of 2014. “The result was below market expectations,” Taurus Securities’ Head of Research Zeeshan Afzal said, attributing the decline in the company’s net earnings to lower oil and gas flows, which dented sales revenues, and fall in international petroleum prices, which hurt the profit margin.

Besides lower average oil prices, a 3% to 4% slowdown in the production also had an adverse impact on the company’s revenues, BMA Capital said in its report.The local E&P giant, which has 3.9% weight in the benchmark KSE-100 Index and constitutes over 40% of the listed Oil & Gas Sector, reported Rs41.8 billion in revenues during the fourth quarter of 2015, a decrease of 23% compared to Rs54.2 billion it earned in sales during the corresponding period of 2014.The index heavyweight is highly vulnerable to fluctuations in international crude oil prices thus, the recent slump in prices reduced its gross profit margin to 54.4% in the last quarter of 2015, down by 10 percentage points from 64.2% of the same quarter of 2014…. EXPRESS TRIBUNE

 

Fauji Cement’s earnings surge 67%

Fauji Cement (FCCL) announced a net profit of Rs2.77 billion in the first six months (Jul-Dec) of fiscal year 2015-16 (1HFY16), up a significant 67% compared to the same period of last fiscal year, …Earnings per share (EPS) jumped to Rs2.09 compared to an EPS of Rs1.25 in the period under review.In the second quarter, the company posted a net profit of Rs1.67 billion (EPS of Rs1.21), up 52% quarter on quarter from preceding quarter profit of Rs1.1 billion (EPS of Rs0.83).The company also announced interim cash dividend of Rs1.75 per share (2QFY15: 1.00/share).

The company witnessed a 24% quarter on quarter rise in dispatches (751,000 tonnes in 2QFY16) owed to improved domestic/export demand (up 24% and 26%, respectively), coupled with stable cement prices in the north region of the country, resulting in a 27% sequential growth in turnover.Gross margins expanded by 600 basis points during 2QFY16 to 48%, in contrast to 43% in 1QFY16 due to lower average coal prices which dipped 8.7% quarter on quarter in 2QFY16 along with contracting fuel costs amid dwindling oil prices. While 1HFY16 gross margins rose 11 percentage points to 46%.The selling and distribution expenses escalated by 57% quarter on quarter to Rs58 million…. EXPRESS TRIBUNE

PPL’s earnings amount to Rs. 11.78b in Jul-Dec

Pakistan Petroleum Limited (PPL) announced a profit after tax of Rs11.78 billion in the first six months (Jul-Dec) of fiscal year 2015-16, down 47% compared to Rs22.14 billion in the same period of last fiscal year, ….Earnings per share (EPS) dropped to Rs5.98 from Rs11.23 in the period under review.The company posted a profit after tax of Rs5.88 billion (EPS of Rs2.98) in the second quarter (Oct-Dec) of fiscal year 2015-16 (2QFY16), depicting a flat sequential growth despite a 20% quarter on quarter decline in average Arab Light prices.The company also announced an interim cash dividend of Rs. 2.25 per share.

The company recorded net sales of Rs20.5 billion in 2QFY16, flat compared to previous quarter mainly on the back of 14% increase in oil production, 7% increase in gas production and stagnant gas prices in the quarter under discussion.However, wellhead prices are expected to be revised downwards for 2HFY16. The exploration cost clocked in at Rs9.8 billion, down 10% quarter on quarter…. EXPRESS TRIBUNE

 

DIVIDENDS/RESULTS FOR FEBRUARY 2016

GHGL :  20% CASH – EPS : 6.08

EFERT : 30% CASH – EPS : 11.30

MCB :  40% CASH – EPS : 22.96

NRL :  EPS : 36.07

APL : 150% CASH – EPS : 19.78

ATRL :  EPS : 8.53

POL : 150% CASH – EPS : 15.50

ACPL : EPS : 10.07

CHCC :  10% CASH – EPS : 3.83

PSO : 50% CASH – EPS : 24.76

AKBL :  12.5% CASH – EPS : 4

PPL : 22.5% CASH –  EPS : 6.12

FCCL :  17.5% CASH – EPS : 2.09

OGDC : 12% CASH – EPS : 7.95

DGKC : EPS : 8.75

HUBC : 45% CASH – EPS : 4.59

ENGRO : 70% CASH – EPS : 26.32

UBL :  40% CASH – EPS : 21.36

LUCK : EPS : 22.17

MARI :  30% CASH – EPS : 18.63

KAPCO :  42.50 % CASH –  EPS : 4.92

NCPL : 20% CASH – EPS : 4.52

ASC : EPS : 1.48

Maple Leaf records 69% profit increase

Maple Leaf Cement  announced an after-tax profit of Rs.1.5 billion in the second quarter ended December 2015, an increase of around 69% over earnings of Rs888 million in the same period of previous fiscal year, ….Earnings per share stood at Rs2.8 in the October-December quarter compared to Rs1.7 in the same period of previous year.With the financial numbers, the cement manufacturer also declared an interim cash dividend of Rs1.5 per share as opposed to Rs1 per share last year.

“The result was well above market estimates,” commented Topline Securities in its report.

In the October-December quarter, revenues of the company jumped 13% year-on-year to Rs5.9 billion primarily due to higher cement sales in the domestic market.In the quarter, local sales of the company grew 15% year-on-year to 700,000 tons in the face of rising demand from the private sector…. Gross margins of the company improved a robust 734 basis points to 44% in the three months to December 2015. The strong margins were the result of booking coal at a lower cost as prices were down 21% year-on-year on the Richards Bay Index. Moreover, a substantial fall in oil prices – Arab light crude was down 45% year-on-year – led to a 20% decline in power tariff, which further aided the company’s gross margins. Maple Leaf also benefited from lower financial charges, which dropped 52% thanks to the reduced interest rate environment as the policy rate stood at a 42-year low of 6%…In the first half (July-December), revenues were up 12% and net earnings rose 63%….. EXPRESS TRIBUNE

 

DIVIDENDS / RESULTS FOR OCTOBER 2015 – I

KAPCO : EPS : 2.39

EFERT : 15% CASH – EPS : 7.45

CHCC : EPS : 1.52

CYAN : EPS : 6.65

UBL : 30% CASH – EPS : 16.01

KOHE : EPS : 0.96

PAEL : EPS : 6.60

FFBL : EPS : 1.01

PNSC : EPS : 0.45

FFC : 27.5% CASH – EPS : 10.14

HUBC : EPS : 1.76

PSO : EPS : 11.97

GASF : EPS : – 0,12

DGKC : EPS : 3.93

FCCL : EPS : 0.83

ENGRO : 50% CASH – EPS : 16.95

NCPL : 20% CASH – EPS : 2.37

LUCK : EPS : 9.18

KOHC :

Market capitalisation grows 111%, but listings down 5%

The number of listed companies has gone down by 5% in the last three years, the latest annual report of the Karachi Stock Exchange (KSE) shows. As many as 30 companies have unlisted since 2012 when stocks of 590 entities were traded on the largest stock exchange of Pakistan. Their number clocked up at 560 at the end of 2014-15, just three notches above the number of listed companies at the end of 2013-14. Although market capitalisation has gone up by a massive 111% over the last three years, total capital listed on the stock exchange has grown by just 11.1% during the same period.

However, privately held companies seem to have become more interested in going public of late. The last fiscal year saw nine new listings on the KSE as opposed to five, four and four listings in the preceding three fiscal years, respectively. The listed capital of new companies also surged notably along with nine new listings. New companies listed capital of Rs38.1 billion in 2014-15, which was almost twice the capital listed on the bourse during the preceding fiscal year.

However, financial accounts of the exchange show it doubled its advertising and marketing expenses to Rs16.5 million in 2014-15 in order to create awareness about the KSE, which could lead to higher liquidity and more listings in the future. Companies that were listed in 2014-15 included Colony Textile Mills, Engro Powergen Qadirpur, Saif Power, Sindh Modaraba, Systems Limited, Synthetic Products Enterprises, Mughal Iron & Steel Industries, Ghani Global Glass and Dolmen City REIT.

New listings raised funds amounting to Rs11 billion as opposed to equity generation of Rs4.7 billion in the preceding year….EXPRESS TRIBUNE

 

 

DG Khan Cement records Rs7.63b in earnings

Dera Ghazi Khan Cement – one of the largest cement makers of the country and part of the Nishat Group – has posted net earnings of Rs7.63 billion in the year ending on June 30, up 28% compared to full-year earnings of Rs5.97 billion in the same period of last year. Earnings per share (EPS) increased to Rs17.40 against an EPS of Rs13.62 in the period under review.

The company has also announced a final dividend of Rs5.00 per share. The company posted a profit of Rs2.25 billion in the fourth quarter (April to June 2015), exhibiting a growth of 11% against a net profit of Rs2.02 billion in the same period of last year. Earnings per share (EPS) in the fourth quarter jumped to Rs5.14 from an EPS of Rs4.61. The key reasons behind the earnings performance were; improvement of 80 basis points (bps) year on year (YoY) in gross margins to settle at 42.4% during fourth quarter of fiscal year 2015 (4QFY15) fuelled by falling coal prices.

Secondly, 18% YoY decline in borrowing costs due to lower interest rates and deleveraging of balance sheet, and reduced administration and selling expenses (down 17% year on year) also provided support. The share price of the company has already gained 24.4% in calendar year to-date (CYTD). The production capacity of the company is 14,000 tons per day (4,200 million tons per annum). It has three cement plants; two are located in Dera Ghazi Khan and one in Khairpur District, Chakwal…. EXPRESS TRIBUNE

Lucky Cement posts earnings of more than Rs.12 billion

On the back of volumetric growth, Lucky Cement Limited – Pakistan’s largest cement-maker with more than 19% market share – boosted its net earnings by one-tenth to more than Rs.12 billion in fiscal year 2014-15,…The company reported an after-tax profit of Rs12.43 billion or Rs38.4 per share for the year ended June 30, 2015, up 9.6% compared to Rs11.3 billion or Rs35.08 per share last year. The results were accompanied by a dividend of Rs9 per share for the year.

Revenues improved by 3.9% to Rs44.8 billion compared to Rs43 billion in the previous year. The increase in net sales was attributable mainly to the increase in volumes, ….Local sales registered a growth of 7% with 4.42 million tons compared to 4.13 million tons reported last year, whereas export sales showed a decline of 4.5% at 2.37 million tons compared to 2.48 million tons reported last year, the press release said. “The growth in earnings was primarily on the back of 4% year-on-year dispatch growth, expansion in margins, which increased by 170 basis points, and 27% jump in other income,” BMA Capital said in its report. The company also reported progress on its key foreign and local projects, which include a fully integrated cement manufacturing plant in the Democratic Republic of Congo, a 660-megawatt coal-based power project, a 50MW wind farm, electricity supply to Pesco and waste heat recovery at Pezu power plant, which is expected to be completed by the end of October this year…. EXPRESS TRIBUNE