United Bank posts Rs6.2 billion profit in July-September

KARACHI: United Bank Limited (UBL) posted a profit of Rs6.161 billion with earnings per share (EPS) of Rs4.99 for the quarter ended September 30, down 13.8 percent year-on-year, a bourse filing said on Thursday.  

UBL recorded a net income of Rs7.15 billion with EPS of Rs5.77 in the same period a year earlier, a notice to Pakistan Stock Exchange said. 

The bank also announced an interim dividend of Rs3/share, which is in addition to Rs6/share already paid to the shareholders. Net interest income for the quarter surged 3.5 percent to Rs14.558 billion in the quarter under review compared with Rs14.054 billion in the same period last year. 

“Interest income increased as asset growth offset compression in net interest margins, which was constrained due to a higher weighted average duration for [UBL’s] Pakistan investment bond portfolio,” Syavash Pahore, an analyst at Elixir Securities said.

Non-interest income, however, decreased to Rs4.7 billion in July-September 2017 from Rs4.58 billion a year ago.

Analyst Hamza Kamal at First Capital Equities said the bank’s effective tax rate stood at 29.7 percent in the 3Q as compared to 50.7 percent in the previous quarter and 35.2 percent during the same period last year.

Pahore said capital gains witnessed a 40 percent decline, but fee income grew five percent and foreign exchange income soared 24 percent.

UBL’s total operating expenses stood at Rs9.85 billion in July-September, up 17 percent over a year earlier.  

Analysts are uncertain if this is due to one-off event or higher operating cost growth or could it continue in the next quarter.

“Key risks for UBL include non-performing loan’s creation on international book, lower than expected advances growth, delay in hike in interest rates and deterioration of economic indicators,” Umair Naseer, an analyst at Topline Securities said.

UBL posted a profit of Rs19.45 billion, translating into EPS of Rs15.81 for the nine-month period ended September 30 compared with profit of Rs21.75 billion and EPS of Rs17.59 in the corresponding period last year.

Kapco’s profit inches down 

Kot Addu Power Company (Kapco) recorded a 5.9 percent year-on-year fall in profit to Rs2.18 billion with earnings per share (EPS) of Rs2.48 for the quarter ended September 30, a bourse filing said on Thursday. 

Kapco registered a net income of Rs2.318 billion with EPS of Rs2.63 during the same period a year earlier, a notice to the Pakistan Stock Exchange said. 

The company did not declare any dividend in line with a semi-annual dividend policy.

Analyst Syavash Pahore at Elixir Securities said earnings were disappointing due to finance costs, which rose 67.3 percent.

Pahore attributed the escalating finance cost to worsening debt situation that caused the Kapco’s payables to sharply increase 112 percent as of June. 

The firm’s finance cost amounted to Rs1.59 billion in the July-September quarter of 2017 as against Rs955.27 million a year earlier.

“Kapco generally earns a positive spread on other income – finance cost. The anomaly in this quarter was most likely due to financing of working capital rather than use of short-term borrowing,” the analyst said. Working capital fund carries comparatively a high mark-up.

Kapco’s sales revenue, however, surged 21.6 percent to Rs21.57 billion in the quarter under review due to 21 percent higher furnace oil prices and nine percent more power generation.

POL Q1 profit up 15.29pc

Pakistan Oilfields Limited (POL) announced a net profit of Rs2.64 billion for the quarter ended September 30, 2017, up 15.29 percent compared with profits of Rs2.29 billion in the corresponding period last year.

The earnings per share (EPS) clocked in at Rs11.14 as against Rs6.64 last year. The company did not announce any payouts along with the results.

“Growth in bottom-line stemmed from robust growth in sales revenues on account of 17 percent higher Arab light prices coupled with 5.0 percent rise in hydrocarbons production and decrease in operating costs,” an analyst at Taurus Securities said.

Sales revenue during the quarter clocked in at Rs8.128 billion, up 26 percent from sales of Rs6.46 billion in the quarter ended September 30, 2016.

Operating costs remained relatively flat at Rs1.97 billion while exploration costs decreased to Rs272 million in the absence of dry wells during the quarter.

NRL profit declines

National Refinery Limited (NRL) has earned a profit of Rs1.7 billion for the quarter ended September 30, 2017, which is 10.5 percent lower than the profit of Rs1.9 billion during the corresponding period of the last year.

The earnings per share (EPS) for the period under review clocked in at Rs21.26 as compared to Rs23.83 during the same period of the last year. NRL did not announce any payouts along with corporate earnings.  Net sales during the quarter stood at Rs41.693 billion, up 14.2 percent from Rs36.53 billion recorded during the quarter ended September 30, 2016.

APL profit down

Attock Petroleum Limited (APL) has announced a net profit of Rs1.33 billion for the quarter ended September 30, 2017, which is 14.7 percent lower than Rs1.56 billion earned during the corresponding period of the last year.  The earnings per share (EPS) for the period under review clocked in at Rs16.04 as compared to Rs18.85 during the same period of the last year. APL did not announce any payouts along with corporate earnings.

Net sales during the quarter stood at Rs48.245 billion, up 23.7 percent from Rs38.98 billion recorded during the quarter ended September 30, 2016.

An analyst at Taurus Securities said net sales jumped, as petroleum oil and lubricants products (POL) volumetric sales grew nine percent on the back of uptick in motor spirit, diesel and furnace oil volumes along with higher POL products prices.  “However, profits remained on the slightly lower side amid the absence of major inventory gains as witnessed during the same period of the last year.”

FFBL earns profit 

Fauji Fertilizer Bin Qasim (FFBL) earned a net profit of Rs518 million for the quarter ended September 30, 2017, which is 11 times higher than the profit of Rs44.44 million during the corresponding period of the last year, a bourse filing said on Thursday.

The earnings per share (EPS) for the period under review clocked in at 76 paisas as compared to 29 paisas during the same period of the last year. The company did not declare any payouts along with the corporate announcement.

Sales revenues surged 31.5 percent to Rs15.081 billion during the quarter under review as compared to Rs11.46 billion. Tahir Abbas at Arif Habib Limited said top-line witnessed growth attributable to a 15 percent incremental DAP off-take.

“Margins recovered to 15 percent during the quarter under consideration as compared to seven percent last year, mainly due to removal of DAP subsidy adjusted with lower GST at five percent.”