KARACHI: Pakistan Petroleum Limited, the country’s second-largest oil and gas explorer, reported a 43.9 percent rise in its net profit for the first half of fiscal year 2024, driven by higher sales and lower exploration costs.
The company said on Monday it earned Rs69.79 billion, or Rs25.65 per share, in the six months ended Dec. 31, 2023, compared with Rs48.5 billion, or Rs17.82 per share, a year earlier.
The board of directors declared an interim cash dividend of Rs2.50 per share, or 25 percent, on both ordinary and convertible preference shares, payable to shareholders on March 6, 2024.
The company said its revenue for the period increased to Rs151.017 billion, compared with Rs138.197 billion during the same period a year earlier. Operating expenses, royalties and other levies increased to Rs49.139 billion against Rs46.848 billion.
For the quarter that ended December 31, the company declared its net profit at Rs40.027 billion, a surge of 80.5 percent compared with Rs22.168 billion during the same period in year 2022.
EPS for the quarter was recorded at Rs14.71, as compared with Rs8.15 a share during the same quarter in 2022.
One analyst at KASB Pakistan Research said that the result came above street consensus driven by a low effective tax rate.
Engro Corp profit jumps 43 percent
Engro Corporation, Pakistan’s largest conglomerate, reported a 43 percent rise in its full-year net profit on Monday, boosted by higher revenue from its fertiliser, petrochemical and power businesses.
The company posted a net profit of Rs66.045 billion for the year ended Dec. 31, up from Rs46.111 billion a year earlier, it said in a statement to the Pakistan Stock Exchange.
However, its profit after the remeasurement of thermal assets, which reflects an accounting adjustment due to the difference between the carrying amount and the recoverable amount of its power plants, Rs36.094 billion.
Engro also announced a final cash dividend of Rs2 per share, taking the total dividend for the year to Rs48 per share.
Earnings per share (EPS) came in at Rs63.01, compared with Rs42.23 a year ago. EPS after remeasurement of thermal assets was Rs38.60 , compared with 42.23 rupees.
The company said its net revenue for the year rose to Rs482.488 billion, compared with Rs356.427 billion a year earlier. The cost of revenue also remained higher at Rs326.853 billion from Rs251.484 billion.
Engro said it was evaluating to execute the proposed divestment of its thermal energy assets, comprising of shareholding in Engro Powergen Qadirpur Limited, Engro Powergen Thar (Private) Limited and Sindh Engro Coal Mining Company Limited, through a sale of shares process.
Nestle Pakistan’s net profit up by 9.6pc in 2023
Nestle Pakistan Limited reported a 9.6 percent increase in its full-year net profit on Monday, due to an increase in revenue.
In a statement to the Pakistan Stock Exchange, the company reported a net profit of Rs16.492 billion for the year that ended on December 31, up from Rs15.049 billion during the same period the previous year.
The company also announced a final cash dividend of Rs19 per share, which is in addition to the interim dividend already paid at Rs174 per share.
Earnings per share came in at Rs363.68 a share, compared with Rs331.86 a share last year.
The company said its revenue from contracts with customers for the year rose to Rs200.605 billion, compared with Rs162.516 billion a year earlier.
The cost of goods sold also increased to Rs129.845 billion from Rs107.064 billion a year ago.
The company paid higher taxes of Rs12.552 billion during the period, compared with Rs7.742 billion.
The company said in a statement that despite several external challenges, a focus on innovation and renovation and ensuring product availability, supported by investments behind the brands, helped in the revenue boost. Growth was broad-based across the product portfolio.
The company’s operating profit also witnessed an improvement as a result of an emphasis on the localization of raw and packaging materials, increasing its exports (to 18 countries), and tighter control on fixed costs.
The year 2023 was an important year for the company; it marked 35 years of Nestlé in Pakistan. Nestlé Pakistan continued to be a force for good, investing Rs3.2 billion in the country with a focus on sustainability. Rs2 billion of the investment was spent on renewable energy.
The company also achieved all of its sustainability targets for 2023, including greenhouse gas reduction, sustainable packaging, water regeneration, collection of plastic waste (more than 2,600 tons were managed under the waste management project Clean Gilgit-Baltistan Project), and a 7th clean, safe drinking water facility was inaugurated.