March 17, 2020 (MLN): Crescent Steel and Allied Products Limited has been awarded a contract from Sui Northern Gas Pipelines Limited (SNGPL) for the supply of 16 and 24-inch diameter pipes amounting to Rs 1,688 million.
The aforesaid contract is expected to be executed during first quarter of next financial year, revealed an official notice sent by the company to Exchange.
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November 27, 2020 (MLN): D.G. Khan Cement Co. Ltd (DGKC) conducted an analyst briefing session yesterday where the management discussed the latest financial results as well as the company’s future strategy.
To recall, the company reported a net loss of Rs 293 million (LPS: Rs 0.67), depicting a massive 80% YoY decline against a net loss of Rs 1.44 billion (LPS: Rs 3.30) in the corresponding period last year.
The company’s performance improved remarkably as a result of a jump in total dispatches to 1,897k tons, recovery in retention prices together with the soft coal prices (USD 60/ton CNF in 1QFY21) which offset the impact of PKR depreciation.
During the analyst briefing session which was organized by Foundation Securities, the management communicated that the company is maintaining coal inventory at US$65-67/ton for the current quarter so far. Whereas, new coal prices for the remaining quarter are shipped at ~US$72/ton. Subsequently, the passing on impact would be Rs100/ton. However, new coal prices for shipment is currently clocking in at US$82/ton. The management is optimistic to pass on the impact of increasing energy costs to the consumers.
The company expects demand to grow by 12% YoY in FY21, which will be steered by private sector demand amid the government’s strong emphasis on the construction sector, CPEC related construction, demand from Diamer Bhasha and Mohmand Dam along with expected demand in South due to the Karachi package of PKR 1.1tn.
The management disclosed that the company is not directly involved in selling cement to dams. However, DGKC plans to target demand regions of those plants (CHCC/KOHC/Askari, etc) that would be supplying cement to dams.
In terms of power requirements, two of the company’s production sites are self-sufficient. DG Khan Site is 100% sufficient in terms of electricity while Khairpur site is only 15- 20% reliant on the national grid. Hub site is expected to become more reliant on the Waste Heat Recovery and Coal-Fired Power Plant (commissioning expected by the end of FY21), as per key takeaways covered by Fortune Securities.
On the export front, the management of the company revealed that the anti-dumping duty imposed on Pakistani cement by South Africa will expire on December 15, 2020. If this duty is lifted, it will open another export avenue for producers via Sea route to tap the big cement market to improve export margins.
Regarding potential new expansions, the management stated that they are presently assessing both greenfield and brownfield expansions. A green-field expansion will be c.12,000tpa (3.6mn tons pa) and a brown-field will be c.7,000tpa (2.1mn tons pa). DGKC presently has a total capacity of around 7mn tons, as per Intermarket Securities.
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November 27, 2020: The National Command and Operation Center (NCOC) on Friday was apprised that the National Positivity Ratio is 7.2 percent with soaring ratios in the provinces.
The NCOC meeting chaired by Federal Minister for Planning, Development and Special Initiatives Asad Umar discussed epidemic curve chart data, SOP's compliance in mosques, shrines and marriage halls and feedback of interaction with Ulemas where the provincial Chief secretaries participated through video link.
Speaking on the occasion, Asad Umar said that our main responsibility was public safety and health.
He added that all necessary measures as passed through various guidelines and instructions issued from time to time by the Health Ministry should be ensured.
Asad Umar said that continuous monitoring and anticipation of likely pattern or disease prevalence was the most important measure as only this would help us required response for Covid Control efforts.
The Forum was apprised about disease prevalence and spread in various parts of the country. The Health experts briefed the forum that the National Positivity Ratio was 7.20 percent with the highest positivity ratio observed in Peshawar at 19.65 percent followed by Karachi at 17.73 percent and Hyderabad at 16.32 percent.
"Around 2,112 Covid patients are in critical condition across Pakistan and the number of critical patients is rising fast," the health experts said.
The positivity ratio in various federating units was recorded as Azad Jammu and Kashmir (AJK) 10.79 percent, Balochistan 6.41 percent, Gilgit Baltistan (GB) 4.81percent, Islamabad 5.84 percent, KP is 9.25 percent, Punjab 3.59 percent and Sindh 13.25 percent.
The Province wise COVID Positivity Ratio was noted in Punjab as Lahore had 4.52 percent, Rawalpindi11.49 percent, in Sindh, Karachi had 17.73 percent, Hyderabad 16.32 percent, in
Khyber Pakhtunkhwa (KP) Peshawar had 19.65 percent, in Balochistan Quetta had 9.77 percent, the Islamabad Capital Territory (ICT) had 5.84 percent, in AJK had Mirpur 14.97 percent, Muzaffarabad 10.34 percent and in GB, Gilgit had 9.26 percent.
The Forum was also apprised that the meetings were held with Ulemas and Marriage hall associations by federating units on compliance of health guidelines and health protocols and enforcement measures.
The Federating units praised compliance of SOPs in mosques and enforcement measures and public awareness about pandemic through lUemas.
APP
November 27, 2020: The Asian Development Bank (ADB) has approved a $300 million policy-based loan to help promote macroeconomic stability in Pakistan by facilitating improved trade competitiveness and export diversification.
“While COVID-19 hit Pakistan at a critical point in its macroeconomic recovery, the government’s ongoing efforts to ensure stability have started showing encouraging results this fiscal year,” said ADB Principal Public Management Specialist Hiranya Mukhopadhyay. “ADB’s program will support these efforts and help Pakistan to improve its export competitiveness—now more important than ever given the impacts of the pandemic.”
ADB’s program will help Pakistan recover its current account deficit in a sustained manner and continue to facilitate export diversification. It will introduce important tariff- and tax-related policy reforms to help improve Pakistan’s international competitiveness and further strengthen key institutions, including accreditation bodies, the Export-Import Bank of Pakistan, and the Pakistan Single Window.
The new financing falls under Subprogram 2 of the Trade and Competitiveness Program. Under the first phase, ADB helped the government usher in key reforms, including reducing or abolishing tariffs and ad hoc duties on a large number of raw materials and intermediate goods. Several steps were also taken to introduce e-commerce, strengthen key institutions involved in facilitating trade, and enhance the export certification process.
Since the fiscal year 2004, Pakistan has registered a rise-and-fall pattern of export growth reflecting underperformance in its export industry and long-term decline in export competitiveness. This is compounded by lost export growth momentum from COVID-19, which has reduced high-income countries’ demand for manufacturing goods and disrupted the supply of raw materials.
ADB is coordinating its efforts with other development partners and donors while the program complements International Monetary Fund-led reform initiatives by helping to improve competitiveness, which will help build robust foreign exchange reserves.
Press Release
November 27, 2020 (MLN): Oil and Gas Development Company Limited (OGDCL) as Operator (100%) of Lakhirud Exploration Licence has discovered gas from its exploratory well Lakhirud X-1, which is located in District Musa Khel, Balochistan Province.
The structure of Lakhirud X-1 was drilled and tested using OGDCL's in house expertise. The well was drilled down to a depth of 3000 meters. Based on logs data, the well was tested at a rate of 2.5 Million Standard Cubic Feet per Day (MMSCFD) of gas and 18 Barrels Per Day (BPD) of water through 32/64" choke at Well Head Flowing Pressure of 600 Pounds per Square Inch (Psi) from Mughal Kot Formation, as per the notice issued to PSX.
The discovery of Lakhirud X-1 has opened a new avenue and would add to the hydrocarbon reserves base of OGDCL.
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November 27, 2020 (MLN): The Organic Meat Company Limited (TOMCL) has completed the purchase of a Plot in Korangi Industrial Area and having a constructed building thereon to set up an offal facility.
According to the notice issued to PSX, the total cost of the acquisition of the subject land is Rs 145 million. The details of the aforementioned information had been disclosed by the company in the prospectus leading to its IPO.
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