Fauji Fertilizer profit up 29%

In line with market expectations, Fauji Fertilizer has posted a net profit of Rs5.90 billion in the first quarter (Jan-Mar) of calendar year 2015, up 29% from Rs4.56 billion in the same quarter previous year. Earnings per share (EPS) of the company jumped to Rs4.64 from Rs3.58 in the period under review. The result also accompanied an interim cash dividend of Rs3.94 per share. The revenue of the company posted a growth of 16% year on year to Rs20.4 billon owing to 8.8% year on year increase in urea off-take. The gross profit increased by 11% to Rs8.3 billion in first quarter of 2015. However, gross margins of the company declined by 189 basis points to 40.7%…. EXPRESS TRIBUNE

 

Engro Corporation’s profit up 77%

 Engro Corporation, one of the largest private sector conglomerates in the country, has posted a record net profit of Rs3.64 billion in quarter ending on March 2015, up 77% compared to Rs2.06 billion in the same quarter of previous year….Earnings per share (EPS) improved to Rs6.9 from an EPS of Rs4.02 in the period under review. The result also accompanied an interim cash dividend of Rs2.0 per share. The revenue of the company posted a growth of 8% year on year to Rs41.4 billion due to 18.6% year on year increase in Engro Fertilizer sales, which were led by 6.8% year on year higher urea off-take and 24% growth in the top-line of Engro Foods. Engro Fertilizer sold 481,000 tons of urea in the first quarter of 2015 compared to 451,000 tons in the corresponding period last year. Engro Foods’ sales increased because of higher volumetric growth in dairy segment. The gross profit increased 22% to Rs11.4 billion in first quarter of 2015 while gross margins of the company improved by 322 basis points to 27.7%.Other income surged 84% to Rs1.1 billion in the first quarter of 2015 compared to Rs617 million in the same quarter last year…. EXPRESS TRIBUNE

PRL refines third-quarter profit, up by 191%

Improved refining margin and recovery of better-priced distilled product helped Pakistan Refinery Limited (PRL) record a massive turnaround in net profit (191%) for the third quarter of fiscal year 2014-15 (January-March) compared to the same period last year. It posted a net profit of Rs1.09 billion during the period, something that will also help the Karachi-based refinery improve its equity position. “Refining margins have been excellent,” said PRL Managing Director Aftab Husain, …..“Beside this, we are recovering 2% to 3% more diesel from crude after the revamping exercise we carried out at the plant.”Refining more crude oil into petroleum products like diesel instead of furnace oil adds to the profitability of refineries in Pakistan based on old designs….“The difference between price of diesel and furnace oil comes to around $200 per ton,” said Husain. “Revamping has helped us bring in efficiencies.”

PRL expects to record further efficiency gains in coming months when its isomerisation unit comes online. “We will be producing 12,000 tons per day of petrol, which will be another add-on for the bottom line.”….Like other refineries upgrading their plants to deal with the situation, PRL is investing millions of dollars in Isomerization and Diesel Desulphurisation units. The isomerisation unit processes naphtha into petrol.The profit along with issue of right shares will also help PRL bridge the gap in its equity, which was bit by accumulated losses of previous years. It intends to raise Rs2.8 billion from rights issue…. EXPRESS TRIBUNE

Attock Cement posts profit of Rs1.6 billion

Attock Cement – part of the Attock Group of Companies – has posted a net profit of Rs1.64 billion during the first nine months (Jul-Mar) of fiscal year 2015 (FY15), up 17% compared to Rs1.40 billion in the same period previous year. Earnings per share (EPS) improved to Rs14.35 from an EPS of Rs12.29 in the period under review. The earnings growth was mainly driven by higher cement prices and higher margins, which resulted from lower fuel and power costs,….On a quarterly basis, the company experienced earnings growth of 12% quarter-on- quarter(QoQ) to Rs619 million or an EPS of Rs5.41 during the third quarter of FY15 because of an increase in margins and other income.

Company revenues increased by 7% year-on-year (YoY) to Rs9.79 billion during the first nine months of FY15 because of a 3% YoY increase in volumetric sales to 1.43 million tons and higher retention price of Rs535 per 50kg bag, up 10% YoY. Similarly, on a quarterly basis, revenues increased by 7% QoQ to Rs3.42 billion during the third quarter of FY15, owing to a 4% QoQ increase in volumetric sales. Margins of the company improved by 4 percentage points to 32.5% during the nine months of FY15 because of higher cement prices, fuel price adjustment and subdued international coal prices…..Other income of the company also increased by a notable 109% YoY to Rs129 million in the third quarter of FY15 as a result of higher cash balance and short-term investments. The potential growth in bottom-line was subdued due to 5 percentage points QoQ increase in the company’s effective tax rate to 32%….. EXPRESS TRIBUNE

POL earns Rs2 billion in the third quarter

Pakistan Oilfields Limited (POL) on Monday announced earnings of Rs2 billion in the third quarter of financial year 2014-15 (EPS Rs8.5) against Rs1.2 billion (EPS Rs5) in the second quarter, up around 67%….Net sales of POL dropped 20% quarter-on-quarter to Rs6.5 billion in the January-March quarter because of a 7% decline in the price of Arab Light crude – the benchmark for local exploration and production companies. Oil volumes fell 9.4% compared to the second quarter while gas volumes dipped 8.5%. Negligible exploration cost of Rs17.5 million booked in the third quarter versus Rs2.8 billion (dry well booked) in the second quarter provided considerable support to the company’s bottom-line, ….

In nine months (July to March), the company posted a profit of Rs7.4 billion (EPS Rs31.1), down 27% from Rs10.1 billion (EPS Rs42.7) in the same period of previous year. Net sales fell 7% to Rs24.4 billion in nine months versus Rs26.2 billion in the corresponding period of last year. In the period, POL’s oil production grew 10% while gas output declined 11%. Exploration cost stood at Rs3.1 billion against Rs1.4 billion in the previous year, denting the company’s bottom-line. The surge in exploration cost came as a result of Rs2.8 billion dry well cost incurred in the second quarter……EXPRESS TRIBUNE

Saudi Arabia’s Plan to Extend the Age of Oil

A long and fascinating article about oil from Bloomberg…

Last fall, as oil prices crashed, Ali al-Naimi, Saudi Arabia’s petroleum minister and the world’s de facto energy czar, went mum. He still popped up, as is his habit, at industry conferences on three continents. Yet from mid-September to the middle of November, while benchmark crude prices plunged 21 percent to a four-year low, Naimi didn’t utter a word in public.

For 20 years, Bloomberg Markets reports in its May 2015 issue, the world’s $2 trillion oil market has parsed Naimi’s every syllable for signs of where supply and prices are heading. Twice during previous routs—amid the Asian financial crisis in 1998 and again when the global economy melted down 10 years later—Naimi reversed oil’s free fall by orchestrating production cutbacks among members of OPEC. This time, he went to ground.

At the cartel’s semiannual meeting on Nov. 27 in Vienna, Naimi shot down proposed output reductions supported by a majority of the 12 members in favor of a more daring strategy: keep pumping and wait for lower prices to force high-cost suppliers out of the market. Oil prices fell a further 10 percent by the end of the next day and kept going. Having averaged $110 a barrel from 2011 through the middle of 2014, Brent crude, the global benchmark, dipped below $50 in January.

“What they did was historic,” Daniel Yergin, the pre-eminent historian of the oil industry, told Bloomberg in February. “They said: ‘We resign. We quit. We’re no longer going to be the manager of the market. Let the market manage the market.’ That’s when you got this sort of shocked reaction that took prices down to those levels we saw.” Naimi, 79, dominated the debate at the November meeting, according to officials briefed on the closed-door proceedings. He told his OPEC counterparts they should maintain output to protect market share from rising supplies of U.S. shale oil, which costs more to get out of the ground and thus becomes less viable as prices fall. In December, he said much the same thing in a press interview, arguing that it was “crooked logic” for low-cost producers such as Saudi Arabia to pump less to balance the market…… Bloomberg

PSO’s earnings drop 73% in the first half

Pakistan State Oil (PSO), Pakistan’s largest oil marketing company with market capitalisation of $1 billion, posted a profit of Rs4.28 billion in the half year ended December 2014, down about 73% from Rs15.80 billion in the same period of previous year. Earnings per share in the first half (July-December 2014) stood at Rs15.76, down from Rs58.15 in 1HFY14….Net sales of the company dropped 17% to Rs508 billion in 1HFY15 compared to Rs612 billion in 1HFY14….The sharp decline in PSO’s earnings was primarily due to the decrease in gross margins to 2.46% in 1HFY15 from 3.77% in the corresponding period of previous year, ….EXPRESS TRIBUNE

DIVIDENDS / RESULTS FOR FEBRUARY 2015 – II

SEARL : EPS : 7.66

MARI : EPS : 23.75

DGKC : EPS : 7.75

ENGRO : 40% CASH – EPS : 13.59

KOHE : 20% CASH – EPS : 2.51

KAPCO : 40% CASH – EPS : 5.49

PSO : EPS : 15.76

LUCK : EPS : 19.39

PAKT : 120% CASH – EPS : 18.98

PIOC : 22.5% CASH – EPS : 5.69

GASF : 44% CASH – EPS : 2.37

NCPL : 20% CASH – EPS : 4.43

UBL : 40% CASH – EPS : 19.32

PNSC : EPS : 6

Engro Fertilizers converts IFC loan into equity

Engro Ferti­lizers Limited (EFERT) is set to issue 12.6 million shares of the company to International Finance Cor­po­ration (IFC) at the option price of Rs.24 per share, totalling Rs.302.2m, equivalent to $3m at the exchange rate of Rs.100.7 per dollar. The company secretary announced on Tuesday that in accordance with the disclosures in the offer documents of the company and in line with approval of its shareholders and a nod from the SECP, IFC had exercised its option to convert part of its convertible loan amount of $3m into shares of Engro Fertilizers.

The SECP in its earlier approval on June 12, 2014 had stated that “the regulator was pleased to grant variation in issue of shares to the extent of rate of conversion ie Rs24 or the IPO price whichever is lower instead of Rs41.67 (or the IPO price whichever is lower).” Engro Fertilizers Limi­ted was demerged into a separate business by Engro Corporation on January 1, 2010. The company earned profit after tax amounting to Rs5.6bn on sales at Rs49.5bn for the year ended Dec 31, 2013. Total assets of the company stood at Rs107bn with shareholders equity at Rs31.8bn.

The company is making efforts to clear its balance sheet of debts. Finance cost in the quarter ended Sept 30, 2014, which amounted to Rs.1.89bn were substantially lower than last year’s Rs.2.47bn in same quarter, which the company attributed to “loan repayments, lower KIBOR and appreciation of Rupee against the dollar”. In the directors’ report for the quarter and nine months ended Sept 30, 2014, the company CEO had stated: “As part of the re-profiling of its long-term loans in 2013, the company had agreed to sweep surplus cash (after debt servicing and capex) to its lenders at the end of 2014 on a one-off basis.“With the improved performance, the company has implemented part of the sweep in June 2014, well before the scheduled time by paying an amount of Rs4.96bn which was over and above the normal scheduled repayments”. DAWN