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Business

October 24, 2017

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PSO’s profit jumps to Rs5.03bln

PSO’s profit jumps to Rs5.03bln

KARACHI: Pakistan State Oil (PSO) posted Rs5.03 billion in profit with earnings per share (EPS) of Rs18.51 for the quarter ended September 30, up 15 percent over the same period a year earlier as the company’s finance cost sharply fell.  

The country’s leading oil firm PSO recorded Rs4.38 billion in net income with EPS of Rs16.11 in the corresponding quarter a year ago, a notice to Pakistan Stock Exchange said on Monday.  The company did not announce any payout.

Analyst Waqas Ahmed at Taurus Securities Limited said PSO’s bottom line mainly grew on account of a 16 percent increase in other income due to higher mark-up on delayed receivables, a 41 percent decrease in finance cost after retirement from proceeds of Pakistan investment bonds and a eight percent fall in operating expenses.

Finance cost fell to Rs756.072 million in 1QFY2018 as against Rs1.278 billion in the corresponding quarter a year ago. Effective tax rate clocked in at 32 percent as compared to 36 percent.

PSO’s sales revenue rose 34.5 percent year-on-year to Rs324.76 billion for the quarter under review. Analyst Arslan Hanif at Arif Habib Limited said revenue surged due to higher prices of products. 

Hanif added that revenue also increased due to a 29 percent growth in sales of motor gasoline and a 46 percent rise in sales of high speed diesel. “The company posted a gross profit of Rs9.2 billion with gross margins set at 3.55 percent compared to 5.02 percent. We view inventory losses could’ve been the key dampener for margins.”

Analysts flag volatility in oil prices and inventory losses, rupee depreciation and exchange losses and sharp pileup in circular debt as key risks to the stock.

 

Engro Powergen profit up 20.9pc

Engro Powergen Qadirpur Limited has earned a net profit of Rs1.852 billion for the nine months ended September 30, 2017, which is 20.9 percent higher than the profit of Rs1.526 billion during the corresponding period of the last year.

The earnings per share (EPS) clocked in at Rs5.72 against Rs4.72 last year. The company did not announce any payouts along with the corporate announcement.

The sales revenue for the period stood at Rs8.798 billion, up 8.5 percent from Rs8.106 billion last year.

For the quarter ended September 30, 2017, Engro Powergen posted a net profit of Rs306.968 million, translating into EPS of 95 paisas against the profit of Rs281.929 million and EPS of 87 paisas during the corresponding quarter last year.

 

Pioneer Cement’s profit falls

Profit of Pioneer Cement Limited fell 40.5 percent year-on-year to Rs417.223 million for the quarter ended September 30, translating into earnings per share (EPS) of Rs1.84. 

Pioneer Cement’s net income amounted to Rs702.277 million with EPS of Rs3.09 in the same period last year. The company did not announce any payout along with the corporate announcement. Its sales revenues rose 10.9 percent to

Rs3.154 billion for the July-September quarter. Analyst Faizan Ahmed at JS Global Capital said earnings remained lower than expectation. 

“The company had investments in various mutual funds (both equity and fixed income) on which it had to book losses amidst bearish market,” Ahmed added.

 

Pakgen Power profit jumps 48.3pc

Pakgen Power Limited posted a net profit of Rs357.249 million for the quarter ended September 30, 2017, which is 48.3 percent higher than the profit of Rs240.736 million during the corresponding quarter last year. The earnings per share (EPS) clocked in at 96 paisas during the period under review against 65 paisas last year.

The company did not announce any payouts along with the corporate announcement. “We believe better profitability was likely led by better thermal efficiencies and improved penal mark-up income,” said Mehwish Zafar at JS Global Capital.

The sales revenue for the period stood at Rs5.44 billion, up 17.3 percent from Rs4.635 billion last year. For the nine-month period ended September 30, 2017, Pakgen Power posted a net profit of Rs1.002 billion, translating into EPS of Rs2.69 against the profit of Rs339.358 million and EPS of 91 paisas during the same period of the last year.

 

Lalpir Power profit down 22pc

Lalpir Power Limited has announced a net profit of Rs147.277 million for the quarter ended September 30, 2017, which is 22 percent lower than the profit of Rs189.297 million during the corresponding quarter of the last year.

The earnings per share (EPS) clocked in at 39 paisas during the period under review as against five paisas last year. The company did not announce any payouts along with the corporate announcement. “We believe, the drop in profitability is most likely to be backed by higher quantum of fuel losses, amid increasing furnace oil prices,” said Mehwish Zafar at JS Global Capital.

The sales revenue for the period stood at Rs5.18 billion, up 15.6 percent from Rs4.487 billion last year. For the nine-month period ended September 30, 2017, Lalpir Power posted
a net profit of Rs774.483 million, translating into EPS of Rs2.04 against Rs761.66
million and EPS of Rs2.01 during the same period of the last year.

 

Engro Foods’ profit falls

Profit of Engro Foods Limited (EFoods) dropped 85 percent to Rs385.76 million for the nine-month period ended September 30, translating into earnings per share (EPS) of Re0.5. 

Engro Foods recorded a profit of Rs2.59 billion with EPS of Rs3.38 for the same period a year earlier.  The company did not announce any payout along with the corporate announcement. EFoods’ sales revenue stood at Rs27.135 billion for the period under review, down 20 percent from Rs33.947 billion a year earlier. 

Analyst Nabeel Khursheed at Topline Securities attributed the decline in revenue to subdued sales of dairy products, which was lower than the expectation.  “EFoods is facing fierce competition from new entrants in tea-whitening category, which has significantly dented market presence of the company’s flag ship tea-whitener ‘Tarang’,” Khursheed added.

Analysts flag rising competition in tea-whitener category, decline in overall consumption owing to security reasons, adverse regulatory changes and volatility in international raw milk prices as key risks to EFoods.

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