Byco Petroleum 1H profit zooms to Rs621.95mln

KARACHI: Byco Petroleum Pakistan on Tuesday said it earned a net profit of Rs621.95 million for the six months ended December 31, 2021 (EPS: Rs0.12), as compared to a loss of Rs22.11 million (LPS: Rs0.004), mostly owing to revising economic activities after the Covid-19 lockdowns.

“COVID-19 caused unprecedented disruption to trade and commerce but businesses have started adjusting to the new normal,” the company said in a statement.

“International oil prices increased and POL product consumption in Pakistan has also climbed, though refining margins remained under pressure due to narrow spreads on Premium Motor Gasoline and High-Speed Diesel.”

In the (IHFY21) period under review, the company’s gross revenues declined 20 percent due to fall in oil prices, to Rs100.1 billion from Rs125.6 billion in the corresponding period last year, owing to the impact of virus on the economy, it said.

Byco’s gross profits, however, increased by 30 percent to Rs3.3 billion from Rs2.5 billion a year earlier due to favorable crude and furnace oil prices, the company said adding that operating profit also increased by 20 percent to Rs2.3 billion from Rs1.9 billion in the same period last year, due to strict discipline on costs.

The company also announced a net profit of Rs335.66 million for the quarter ended December 31, 2020 translating into earnings per share (EPS) of Rs0.06, compared with loss of Rs691 million i.e. loss per share (LPS) of Rs0.13 in the quarter ended December 31, 2019.

The company did not announce any payout along with the results and as a result Byco’s scrip closed 5.0 percent down at the stock trading.

Byco’s net sales revenue stood at Rs32.15 billion for the quarter under review, down 22.8 percent from Rs45.56 billion recorded in the corresponding period of previous year.

“Despite increase in overall sales volumes in 2QFY21, topline witnessed a decline due to decreased average selling prices of petroleum products, which offset the impact of growth in overall volumes,” an analyst said.

The finance costs during the quarter declined 25.8 percent to Rs572.647 compared with Rs771.78 million previously, due to lower interest rates.

Amir Abbassciy, Byco’s Chief Executive Officer in a statement said, “Byco expects that discussions between the Government of Pakistan and oil refineries will be productive in developing a long overdue refining policy, so that refineries and the government can chart the next decade of development in this crucial sector”.

“The company places its gratitude with the Government of Pakistan, its customers, shareholders, suppliers, and all other stakeholders for the co-operation extended during the pandemic,” Abbassciy added.

Byco Petroleum is one of Pakistan’s leading energy firms, engaged in the businesses of oil refining, petroleum marketing, and petroleum logistics. Byco's mission is to meet the nation’s energy.

The company manufactures a wide range of petroleum products with a vision to achieve sustainable productivity and profitability while upholding high environmental, health and safety standards.

Habib Metropolitan Bank full-year profit soars 77pc

Habib Metropolitan Bank (HMB) declared a net profit of Rs12.335 billion for the year ended December 31, 2021, up 77.15 percent, from Rs6.96 billion earned in the previous year.

The EPS for the year 2020 clocked in at Rs11.5 as against Rs6.34 in 2019, exceeding market expectations.

The bank also announced a final cash dividend of Rs2.5/share, in addition to interim dividend of Rs2.0/share already paid to the shareholders.

Net interest income in 2020 clocked in at Rs29.42 billion, up 63.8 percent from Rs17.96 billion in the previous year.

“Interest income increased mainly due to contraction in interest expenses,” Mustafa Mustansir, an analyst at Taurus Securities said.

The bank recorded interest expense of Rs47.69 billion in 2020, down 13.2 percent from Rs54.95 billion in 2019.

Total non-interest income during the year clocked in at Rs9.71 billion as against Rs7.41 billion in 2019, down 31 percent.

“Non mark-up income surged primarily due to uptick in fee income and capital gains,” Mustansir said.

Furthermore, the bank’s foreign exchange income surged 32 percent during the year to Rs4.08 billion compared with Rs3.11 billion in the previous year.

Furthermore, the bank also witnessed 96 percent YoY reduction in losses on securities, which provided a cushion to company’s profitability. As a result, the cost to income ratio of the bank improved to 39 percent from 53 percent in the previous year.

The HMB also booked 8.6x higher provisioning expense of Rs 3.6 billion as opposed to provisioning of Rs 419.5 million reported in CY19.

The effective tax rate of the bank for CY20 came in at 39 percent compared to 40 percent in 2019.