Major Companies Declare Results

KARACHI: National Refinery Limited (NRL) on Wednesday posted manifold jump in its full-year net profit, helped by increased refining margins in a low oil price environment.
In a statement to the Karachi Stock Exchange, the company reported a net profit of Rs3.708 billion for the year ended June 30, 2015 up from Rs961.875 million the previous year. The net profit surged 285 percent.
The company announced earnings per share (EPS) of Rs46.38 for FY15 as against EPS of Rs12.03 for FY14.
NRL also declared a final cash dividend of Rs10/share for the fiscal year ended June 30, 2015.
Analyst Fawad Khan at KASB Securities has, however, trimmed the profit estimates going forward based on weak margin forecast.
“NRL’s often-highlighted advantage of base oil will likely play an important role in warding off a steeper cut in estimates,” Khan said.
“While NRL’s pricing power in the segment is well-established, a drop in oil prices sustains the threats of imports and substitution with the reclaimed fuel in our view.”
He said perhaps this explains NRL’s strategy of 15 percent cut in base oil prices since January 2015, with the latest cut of Rs5.0/litre in early August.
He added that weaker oil prices have helped NRL to maintain its base-oil margin at a robust $64/bbl.
The surge in profitability despite lower sales can be attributed to lower cost of sales i.e. lower crude rates, which resulted in higher gross profits.
NRL’s turnover in the outgoing fiscal year stood at Rs188.935 billion compared with Rs249.769 billion in the previous year.
However gross profit for the last fiscal year totalled Rs6.845 billion as against Rs3.053 billion in the comparable year.
Sindh Bank’s half-year gross profit up 63pc
Sindh Bank Ltd on Wednesday said its pre-tax profit rose 62.9 percent to Rs1.017 billion in the half year ended June 30, 2015.
The bank earned Rs624 million in the corresponding period of 2014.
The board of directors of Sindh Bank Ltd approved the unaudited accounts for the half year.
Total deposits increased 33.7 percent to Rs82.763 billion with number of accounts standing at over 251,000 as against 166,000 as on December 31, 2014.
Gross advances amounted to Rs43.074 billion as on June 30, 2015 as against Rs41.185 billion as on December 31, 2014 registering an increase of 4.6 percent while investment, comprising mainly of government securities, increased 11.8 percent to Rs7.034 billion.
Exposure to agriculture sector amounted to Rs2.625 billion as on June 30, 2015.
Sindh Bank has 225 branches in 111 cities across Pakistan, including five Islamic banking branches.

Attock Petroleum Limited profit falls
Attock Petroleum Limited (APL) on Wednesday announced net profit of Rs3.286 billion translating into earnings per share (EPS) of Rs39.62 for the year ended June 30, 2015.
The earnings beat market expectations, yet the oil marketing firm witnessed a 24 percent fall in the full-year net profit.
APL net profit was Rs4.326 billion and EPS remained at Rs52.16 in the fiscal year ended June 30, 2014.
The company also declared a final cash dividend of Rs22/share for the fiscal year ended June 30, 2015, which is in addition to interim dividend of Rs12.5 already paid to shareholders.
“The decline in profitability is attributable to huge inventory losses, 6.0 percent lower HSD (high speed diesel) volumes and one time imposition of 3.0 percent super tax,” a research report by Arif Habib Limited said.
Company’s annual turnover stood at Rs205.715 billion as volumetric sales of furnace oil and motor gasoline recorded an uptick of 23 percent and 12 percent, respectively in FY15.
However, as compared to the turnover of Rs240.567 billion in the previous fiscal year, company’s sales suffered due to dip in oil prices.
Analyst Usman Riaz at Taurus Securities said free fall in the international oil prices remained the major cause of concern for oil and gas investors during FY15.
“Consequently, oil marketing companies depicted its adverse effects as it weighed on the margins of de-regulated products primarily furnace oil whilst downturn in retail fuel prices also inflicted one-off inventory losses,” Riaz said.
Analysts expect revenues to witness modest growth in the new fiscal year given some recovery in petroleum prices. Moreover, inventory gains in the coming quarter would improve gross earnings.

Mari Petroleum full-year profit up 43 percent
Mari Petroleum Company Limited (MARI) on Wednesday announced profit after tax of Rs5.65 billion translating into earnings per share (EPS) of Rs51.25 for the year ended June 30, 2015.
The earnings are 43.3 percent higher than the profit of Rs3.943 billion and EPS of Rs35.77 in fiscal year ended June 30, 2014.
The company also declared a cash dividend of Rs1.5/share for the fiscal year ended June 30, 2015, which is in addition to interim dividend of Rs3.721 already paid to the shareholders.
Mari’s turnover in the outgoing fiscal year stood at Rs88.239 billion compared with Rs70.454 billion in the previous year.