OGDC profit falls 12.3 percent

KARACHI: The Oil and Gas Development Company (OGDC) has announced a net profit of Rs30.008 billion for the half-year ended December 31, 2016, which is 12.3 percent lower than the profit of Rs34.205 billion earned during the same period last year, a bourse filing said on Friday.

The earnings per share (EPS) clocked in at Rs6.98 for the period under review as compared to the EPS of Rs7.95 last year.

The company also declared an interim dividend of Re1/share, which is in addition to the first interim dividend of Rs1.5/share already paid to the shareholders.

The net turnover stood at Rs81.08 billion, down 8.9 percent as compared to the turnover of Rs86.18 billion last year.

Mubashir Anis at Elixir Securities in a report said that earnings came slightly below market estimates due to an elevated operating expenditure, sequentially higher than estimated exploration and prospecting costs, which stood at Rs8.189 billion for the period under review, 74 percent higher than Rs4.713 billion last year.

For the quarter ended December 31, 2016, OGDC posted a net profit of Rs15.37 billion, translating into an EPS of Rs3.58 as compared to the profit of Rs15.94 billion and the EPS of Rs3.71 last year.

Nishat Power profit down 17.5pc

Nishat Power Limited has announced a net profit of Rs1.376 billion for the half-year ended December 31, 2016, which is 17.5 percent lower than the profit of Rs1.66 billion earned during the same period of the last year.The earnings per share (EPS) clocked in at Rs3.88 for the period under review as compared to the EPS of Rs4.69 last year. The company also declared an interim dividend of Re1/share, which is in addition to the first interim dividend of Re1/share already paid to the shareholders.

The net turnover of the company stood at Rs6.89 billion for the half-year ended December 31, 2016, down 19 percent as compared to the turnover of Rs8.49 billion last year.

Mehwish Zafar, an analyst, in her comments on the results said that although furnace oil prices have been recovering, the sharp decline in IPP's turnover came on account of lower power dispatches as load factor stood at 70 percent as compared to 82 percent last year.

“Also, despite 20 percent lower cost of sales due to lower O&M expenses post in-house maintenance, gross profitability of the company reduced 16 percent, primarily stemming from lower fuel savings in the wake of lower electricity dispatches.”

UBL profit rises to Rs28.002 billion

The United Bank Limited (UBL) has announced a net profit of Rs28.002 billion for the year ended December 31, 2016 as compared to the profit of Rs27.0098 billion during 2015.

The earnings per share (EPS) for 2016 stood at Rs22.7 as against EPS of Rs21.36 in 2015.  The company also announced a final cash dividend of Rs4/share, which is in addition to the interim dividend of Rs9/share already paid to the shareholders.

Umair Naseer in a report issued by Topline Securities said that the UBL’s earnings remained higher than estimates due to lower admin expense and higher-than-expected net interest income (NII).

“UBL also posted an earnings growth of six percent in 2016, outperforming its peers who have posted an earnings decline when margins are contracting.”

The net interest income of the bank stood at Rs57.216 billion in 2016 as compared to Rs54.036 billion in 2015, while non-core income for 2016 stood at Rs25.134 billion as compared to Rs23.68 billion last year.

Engro Corp posts profits

Engro Corporation announced a net profit of Rs73.598 billion for the year ended December 31, 2016 as compared to Rs17,268 billion during 2015.

The earnings per share (EPS) for 2016 stood at Rs131.94 as against the EPS of Rs26.32 in 2015.

The company also announced a final cash dividend of Rs4/share, which is in addition to the interim dividend of Rs20/share already paid to the shareholders.

The increase in profit is attributable to one-off gain amounting to Rs58.68 billion, recognised in accordance with the International Financial Reporting Standards, due to partial divesture of equity stake in Engro Foods.

Engro posted 2016 revenues of Rs157.208 billion as compared to Rs81.652 billion in 2015, representing a decline of 13 percent, mainly on account of intense competition in the dairy sector coupled with lower urea offtake at subsidised prices due to poor agronomics.

“I’m pleased to report Engro Corporation’s results have come in at the higher end of our expectations,” said Ghias Khan President & CEO of Engro Corporation in a statement.

“Our ability to consistently execute means we made the most of a year in which we faced some unexpected regulatory headwinds. Decisive actions against our strategic priorities have resulted in a strong foundation for future growth and competitiveness. For 2017 we remain focused on adding shareholder value through a combination of internal alignments and external initiatives.”