Fauji Fertilizer earnings fell 83 percent in first quarter

KARACHI: Fauji Fertilizer Company Limited, the country’s largest chemical fertiliser producer reported 83 percent fall in its first quarter net profit, as its sales fell significantly.

In its consolidated condensed interim profit and loss statement for the quarter ended March 31, 2016, issued to the Pakistan Stock Exchange, the company reported a net profit of Rs769.41 million as compared to Rs4.55 billion during the same period of the last year.

The company also announced first interim cash dividend of Rs1.85, or 18.5 percent, per share.

Earnings per share (EPS) came in at 60 paisas as compared to Rs3.58 last year. The result is in line with the market expectations.

The company said its total sales fell 42 percent to Rs11.96 billion as compared to Rs20.67 billion a year ago.

Cost of sales was recorded at Rs8.96 billion against Rs12.29 billion. Thus, the gross profit of the fertilizer company reduced to Rs3 billion against Rs8.37 billion in the same quarter of the last year.

A statement of the FFC said urea industry remained under severe stress during the period. This is mainly related to poor farm economics and unprecedented rise in the cost of production, while declining international urea prices and non-implementation of ‘Kissan Package’ by the government caused market uncertainty.

Thus, the urea market witnessed substantial decline to around 50 percent in sales, while inventory accumulated to 1.2 million tonnes with combined share of FFC / FFBL at 35 percent of the total inventory.

The urea production by the company remained par excellence, with second highest urea output ever of 614,000 tons.

Sales revenue was also negatively impacted by suppressed selling prices, which resulted in significant absorption of feed / fuel gas costs that is more than double the prevalent gas prices in the Middle East.

 

UBL profits fall amid higher provisions

The United Bank Limited on Tuesday reported 1.8 percent fall in its first quarter net profits amid an increase in the provision.

In its consolidated condensed interim profit and loss statement for the quarter ended March 31, 2016, issued to the Pakistan Stock Exchange, the company reported a net profit of Rs7.56 billion as compared to Rs7.70 billion during the same period last year.

The company also announced interim cash dividend of Rs3 a share. Earnings per share (EPS) came in at Rs6.14 as compared to Rs6.17 last year.

The net profit figures are higher than the market expectations.

The company said its total interest earned revenue remained higher to Rs24.26 billion as compared to Rs23.64 billion. However, interest expensed also remained higher to Rs10.18 billion as compared to Rs10.06 billion.

Thus, net interest income (NII) was recorded at Rs14.07 billion as against Rs13.58 billion.

However, provisions and written off loans increased by 123 percent to Rs1.79 billion against Rs804.66 million, which reduced the profit margins.

Jehanzaib Zafar, an analyst at BMA Capital, said NII comes likely on the back of robust book growth and increase in private sector credit off-take. The NII after provisions, however, was down 4 percent year on year on account of heavy provisioning expenses realized (Rs1.8 billion).

Total non-markup income of the bank also increased to Rs9 billion as compared to Rs6.86 billion in the same quarter last year.

 

ABL earnings up 13 percent

The Allied Bank Limited on Tuesday reported 13 percent increase in its first quarter net profit, as its interest expenses fell along with lower provisions.

In its consolidated condensed interim profit and loss statement for the quarter ended March 31, 2016, issued to the Pakistan Stock Exchange, the company reported a net profit of Rs4.81 billion as compared to Rs4.26 billion during the same period of the last year.

The company also announced first interim cash dividend of Rs1.75/share.

Earnings per share (EPS) came in at Rs4.21 as compared to Rs3.72 last year.

The net profit figures are higher than the market expectations.

The company said its total interest earned revenue slightly fell to Rs17.10 billion as compared to Rs18.49 billion. However, interests paid remained down by 14 percent to Rs8.60 billion as compared to Rs10.01 billion that increased the profit margins.

Thus, the net interest income was recorded at Rs8.50 billion as against Rs8.47 billion.

Iqbal Dinani, an analyst at Elixir Securities, said on a sequential basis, the growth in earnings can be attributed to lower provisioning expense on both loans book along with muted impairment on investments in the first quarter of CY16.

Total non-mark-up income of the bank also increased to Rs3.91 billion as compared to Rs3.18 million in the same quarter of the last year.

 

NML profits rise eight percent

Nishat Mills Limited profits increased by eight percent in the nine months ended March 31, 2016.

In its consolidated condensed interim profit and loss statement issued to the PSX, NML declared profits of Rs6.96 billion during the period as compared to Rs6.44 billion during the same period of the last year.

The company’s earnings per share (EPS) also increased to Rs16.25 as compared to Rs14.83.

Though net sales of the company remained lower to Rs52.86 billion against Rs61.26, a decline of 15 percent in the cost of sales amid low cost of fuels increased the profit margins.

Thus, the gross profit of the company was recorded at Rs9.87 during the period under review as compared to Rs10.41 billion in the same period of the last year.

Other income fell to Rs871.45 million against Rs996.58 million, while the share of profit from associated companies increased to Rs2.61 billion against Rs2.17 billion, which closed the books in the profit.

For the quarter ended March 31, 2016, profits of the company increased to Rs9.97 billion from Rs2.09 billion in the same quarter of FY15.

 

OGDCL profits down 36 percent

The profits of the Oil and Gas Development Company Limited (OGDCL) decreased by 36 percent in the nine months ended March 31, 2016.

In its condensed interim profit and loss statement issued to the PSX on Tuesday, OGDCL declared profits of Rs43.49 billion during the period as compared to Rs68 billion in the same period of the last year.

OGDCL also announced an interim cash dividend of five paisas per share. It is in addition to cumulative interim cash dividend of Rs2.7 already paid.

The company’s earnings per share (EPS) also decreased to Rs10.11 as compared to Rs15.81.

The major reason behind a fall in the revenues is a decline of 25 percent in net sales to Rs122.71 billion from Rs162.69 billion.

Expenses of sales remained Rs67.67 billion against Rs105.53 billion.

During the period under review, other income of the OGDCL also fell to Rs11.63 billion against Rs15.49 billion.

For the quarter ended March 31, 2016, profits of the company also lowered to Rs9.29 billion from Rs20.17 billion in the same quarter of FY15.

 

KEL profits surge 40 percent

The profits of K-Electric Limited (KEL) went up 40 percent in the nine months ended March 31, 2016.

In its financial results issued to the PSX, KEL declared profits of Rs22.79 billion during the period as compared to Rs16.28 billion during the same period of the last year.

The company’s earnings per share (EPS) also increased to 83 paisas as compared to 59 paisas.

Sale of energy increased to Rs118.25 billion against Rs104.77 billion, gross profits were recorded at Rs133.08 billion as compared to 139.35 billion after adjustment of Rs14.83 billion in the tariff adjustment account against Rs34.57 billion of the last year. A decline in the fuel prices increased the profit margins of KEL, while total expenses on purchase of energy and consumption of fuel fell by 16 percent at Rs80.54 billion as compared to Rs96.23 billion last year.

Other income of KEL remained at Rs4.03 billion against Rs4.58 billion. 

For the quarter ended March 31, 2016, the profits of the company increased to Rs3.80 billion from Rs3 billion in the same quarter of FY15.