Corporate Results

HUBCO’s profit falls 4pc to Rs5.37bln in July-Dec

KARACHI: Profit of Hub Power Company Limited (HUBC) fell four percent to Rs5.37 billion for the first half ended December 2016, translating into earnings per share (EPS) of Rs4.38, a bourse filing said on Monday.

HUBC recorded profit after taxation of Rs5.572 billion in the corresponding period of 2015, showed a company’s notice issued to the Pakistan Stock Exchange.

The country’s biggest independent power producer also announced cash dividend of Rs1.50/share (15 percent) for the half year ended December 31, 2016. This was in addition to an already-paid interim dividend of Rs1.5/share.

Analyst Kumail Chevelwalla at Taurus Securities Ltd. said the company’s net revenue shrank four percent year-on-year to Rs48.22 billion in the first half of 2016/17, “on account of relatively low electricity generation.”  “Finance cost and administrative expenses, (however), remained in check with both decreasing five and four percent,” added Chevelwalla.

Analyst Hashim Sohail at Topline Securities, however, expected profits recovery due to business expansion.     

“We expect value addition from coal based power plants (1,320 megawatts at existing Hub plant site and 330 megawatts at Thar and investment in Sindh Engro Coal Mining Corporation as key catalysts to company’s earnings,” Sohail said.

The PSX’s notice said HUBC’s profit decreased five percent to Rs2.718 billion for the second quarter of FY17 as compared to the same quarter a year earlier.

Chevelwalla said the company reported profit after taxation of of Rs2.71 billion, up three percent over the preceding quarter.

“Financial charges of the company grew five percent quarter-on-quarter attributable to higher dependence on short-term borrowings due to inflated furnace oil prices,” he said. “Operating and maintenance expenses remained elevated in the wake of planned overhauling of engines at the Narowal plant.”

The company’s turnover surged four percent year-on-year and two percent quarter-on-quarter to Rs24.35 billion, “primarily due to higher furnace oil prices that grew 16 percent quarter-on-quarter.”

“However, overall electricity generation dropped five percent quarter-on-quarter due to lower generation from base plant (down 11 percent) whereas generation from Laraib (hydel) and Narowal plant grew 114 percent and eight percent quarter-on-quarter, respectively,” Chevelwalla said.

HUBC has 1,600 megawatts of power plants in Hub, Narowal and Laraib.

       

Bestway Cement’s profit up 37pc

Profit of Bestway Cement Limited soared 37 percent to Rs7.105 billion for the first half ended 31 December, 2016, translating into earnings per share (EPS) of Rs11.92, as the company’s sales increased during the period, a bourse filing said on Monday. 

A country’s leading cement maker recorded a profit of Rs5.153 billion in the same period a year earlier, the company said in a notice issued to the Pakistan Stock Exchange. 

Bestway Cement registered revenue of Rs25.840 billion during the July-December period of 2016/17, showing a rise of 22 percent over the same period a year ago. 

Cost of sales increased to Rs14.030 billion in the period under review from Rs12.223 billion in the corresponding period a year earlier. 

Finance costs more than halved to Rs473.040 million in the July-December period. 

Bestway’s profit also increased to Rs3.902 billion in the second quarter ended December 31, 2016, up 22 percent over the same period a year earlier. 

 

Nishat Mills’ profit down to Rs2.550bln in half year

Nishat Mills Limited’s (NML) profit slightly fell 0.3 percent to Rs2.550 billion for the half year ended December 31, 2016, translating into earnings per share (EPS) of Rs7.25, a bourse filing said on Monday. 

A country’s leading vertically-integrated textile firm posted a profit of Rs2.560 billion for the same period a year earlier, said a notice issued to the Pakistan Stock Exchange. 

NML’s sales rose to Rs24.003 billion in the first half of 2016/17 from Rs23.460 billion.  

NML’s consolidated revenue also increased to Rs36.269 billion from Rs35.262 billion, which was lower than the market’s expectation. The market was expecting a surge in textile sales. 

 “We believe subsidiaries of NML failed to support topline,” said Salman Rashid, analyst at Topline Securities.

“For 1H2016, sales increased mere three percent mainly due to lower than expected sales contribution from textile segment along with group companies’ performance (quoted and unquoted) during the later part of 1HFY17.” 

Nishat Mills posted a 14 percent decrease in its profit to Rs1.909 billion for the second quarter ended December 31, 2016 as compared to the last year. Revenue, however, increased to Rs13.011 billion in the quarter under review from Rs12.185 billion.  

Rashid said higher distribution cost in the second quarter, which was up 35 percent year-on-year, dented operating profits, which was down 32 percent year-on-year. 

He said finance cost slid 18 percent year-on-year for the period, “on the back of prevailing low interest rates and increased other income by 17 percent year-on-year.”

Nishat Mills announced Rs100 million worth of investments to set up a subsidiary for assembling and marketing of passenger and one-tonne range commercial vehicles.  

 

Jubilee Life Insurance earnings up 30pc

The profit of Jubilee Life Insurance Company Limited rose 30 percent to Rs2.108 billion in 2016 as compared to Rs1.622 billion in 2015, a bourse filing said on Monday.

The earnings per share (EPS) increased to Rs29.23 during 2016 from Rs22.48 in 2015. The company recommended a final cash dividend of 115 percent (Rs11.50/share), and a proposed bonus issue in the proportion of 10 shares for every 100 shares held, ie 10 percent. This is in addition to the interim cash dividend of 30 percent already paid to the shareholders.

Javed Ahmed, managing director at Jubilee Life, said: “Our results are a testament that Jubilee Life is committed to being the best-value life insurance enterprise not only for its customers and employees, but also for the shareholders.”

Jubilee Life will continue to follow a strategy of high business growth with sustainable profitability, he added.

 

PTC’s annual profit surges 47 percent

Profit of Pakistan Tobacco Company Ltd. (PTC) surged 47 percent to Rs10.361 billion for the year ended 31 December, 2016, translating into earnings per share (EPS) of Rs40.55, a bourse filing said on Monday. 

The company earned a profit of Rs7.046 billion during the preceding year of 2015, equal to an EPS of Rs27.58 said a notice issued to the Pakistan Stock Exchange.   PTC announced final cash dividend of Rs11/share (110 percent) for the year, which was in addition to two already paid interim dividends of Rs14/share (140 percent).

The company’s annual revenue increased to Rs44.866 billion from Rs42.907 billion. Its sale and distribution, administrative and operating expenses decreased to Rs7.773 billion in 2016 as compared to Rs8.220 billion in 2015.

A company’s statement said the company contributed Rs89 billion to national exchequer in the form of excise duty, sales tax, income tax and custom duties in 2016.

“Illicit cigarette trade is currently the biggest challenge facing the legitimate industry, with a massive share of 40.6 percent of the total market,” it added. “Not only does illicit cigarette trade negatively affect the legitimate industry but also negatively impacts government revenues in the form of losses in potential revenue.