OGDCL Q2 profit up 28 percent to Rs19.66 billion

KARACHI: Profit of the Oil and Gas Development Company Limited (OGDCL) increased 27.9 percent to Rs19.66 billion for the quarter ended December 31, 2017, translating into earnings per share (EPS) of Rs4.57, a bourse filing said on Monday.

The company’s profit was Rs15.37 billion with an EPS of Rs3.58 in the same quarter last fiscal, a notice to the Pakistan Stock Exchange (PSX) said. The company also declared an interim cash dividend of Rs3.0/share, which is in addition to interim dividend of Rs1.75/share already paid to the shareholders.

“The distribution came higher than our expectations due to huge cash and equivalents being held by the company after their PIBs investment maturity,” a report issued by Taurus Securities said.

The sales revenues for the quarter improved by 25 percent to Rs51.9 billion compared with the revenues of Rs41.5 billion in the corresponding period last year. Nabeel Khursheed at Topline Securities said despite lower oil production owing to notable decline in flows from Nashpa, OGDCL’s net sales grew due to 25 percent increase in Arab Light oil prices and rupee devaluation against the greenback. “Though we await management clarity, we believe that OGDCL has also booked Rs4.8 billion revenue on account of pricing conversion of TAL block,” he added.

The exploration expenses urged 52.6 percent to Rs5.8 billion compared with Rs3.8 billion previously while other income declined 16.6 percent to Rs3.5 billion for the quarter ended December 31, 2017. Analysts flag long-term volatility in international oil prices, lower than expected hydrocarbon production and significant exploration and development cost as key risks for OGDCL.  

UBL full-year profit falls 6.4pc

Profit of United Bank Limited (UBL) fell 6.4 percent to Rs26.19 billion for the year ended December 31, 2017, translating into EPS of Rs21.39, a notice to PSX said.

UBL’s profit was Rs28 billion with an EPS of Rs22.7 for the year ended December 31, 2016. The bank also declared a final cash dividend of Rs4.0/share, which is in addition to interim dividend of Rs9.0/share already paid to the shareholders.

“The decline in earnings is primarily attributable to higher interest expense, in line with industry trends, and a significant provisioning expense booked in the last quarter,” Samiullah Tariq at Arif Habib Limited said.

Net interest income after provisions stood at Rs55.3 billion for the year 2017, which is 3.3 percent lower than the income of Rs57.2 billion in 2016. The provisioning expenses jumped 200 percent to Rs1.87 billion in 2017 compared with the expense of Rs624.6 million previously.

“We view this could be owing to a significant provisioning expense booked on the UAE loan book, as per earlier discussions with the management,” Tariq added.

Total non-interest income for the year stood at Rs24.29 billion, slightly lower than the income of Rs25.13 billion previously.

Analysts flag non-performing loan (NPL) creation on international book, lower than expected advances growth, delay in hike in interest rates, and deterioration of macros as key risks for UBL.

Hubco profit up in 2nd quarter

Profit of Hub Power Company (HUBCO) increased 11.4 percent to Rs3.012 billion for the quarter ended December 31, 2017, translating into EPS of Rs2.52, a bourse filing said.

HUBCO’s profit was Rs2.71 billion with EPS of Rs2.25 for the quarter ended December 31, 2016.

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

“Higher earnings are attributed to low repairs and maintenance related expenditures as overhauls at the Hub and Narowal plant have been completed,” Syavash Pahore at Elixir Securities said in a report.

The sales revenue during the quarter stood at Rs26.9 billion, up 10.4 percent compared with the revenues of Rs24.35 billion in the corresponding period of the previous year.

For the half-year ended December 31, 2017, HUBCO posted a net profit of Rs5.56 billion translating into EPS of Rs4.58 compared with the profit of Rs5.37 billion and EPS of Rs4.38 in the corresponding period the previous year.

Fauji Cement Q2 profit rises

Fauji Cement Company (FCC) earned a net profit of Rs823.67 million for the quarter ended December 31, 2017, which is 18.5 percent higher than the profit of Rs694.039 million posted for the quarter ended December 31, 2016.

The earnings per share (EPS) clocked in at six paisas for the quarter as compared to the EPS of five paisas previously.

Sales revenues for the quarter stood at Rs5.47 billion, down 5.5 percent from the revenues of Rs5.79 billion recorded in the corresponding period of the last year.

For the half-year ended December 31, 2017, FCCposted a net profit of Rs1.26 billion, translating into EPS of 92 paisas as compared to the profit of Rs1.3 billion and EPS of 94 paisas in the corresponding period last year.

Amreli Steels profit up 28.1pc

Amreli Steels has announced a net profit of Rs328.637 million for the quarter ended December 31, 2017, which is 28.1 percent higher than the profit of Rs256.46 million posted for the quarter ended December 31, 2016.

The earnings per share (EPS) clocked in at Rs1.11 for the quarter as compared to the EPS of 86 paisas previously.

Sales revenue for the quarter stood at Rs3.53 billion, up six percent from the revenues of Rs3.33 billion recorded in the corresponding period last year.

For the half-year ended December 31, 2017, Amreli posted a net profit of Rs524.41 million, translating into EPS of Rs1.77 as compared to the profit of Rs482.1 million and EPS of Rs1.62 in the corresponding period of the last.

Analysts flag downward revision in duty structure, volatility in commodity prices, dumping from countries not covered by anti-dumping duties and delay in expansion commissioning as key risks for the steel manufacturers.  

KMBL profit increases 40

Khushhali Microfinance Bank Limited (KMBL) posted its financial results for the year 2017 on 14 February 2018 in Islamabad, posting appreciable growth in bottom line, accompanied with a dividend of Rs 0.53/share.

KMBL’s pre-tax profit of Rs2.49 billion increased by 40 percent against last year’s profit of Rs1.78 billion. The increase in profit results from continued growth in balance sheet and improved non-fund income.

KMBL maintains the largest network of 173 outlets and enjoys the largest market share in terms of loan portfolio, deposits and asset base in the micro-finance sector.

Compared to last year, portfolio quality indicators also improved, with growth in loan book of 40 percent primarily led by the agriculture sector lending. Bank deposits expanded appreciably by over 100 percent as compared to last year and a strong built up was seen in urban operations.

KMBL is majority owned by a consortium of investors including one of Pakistan’s largest commercial banks (UBL), and Blue Chip international investors with expertise in the micro, small and medium enterprise finance.