PIBTL to bring more efficiency in cargo handling operations

November 22, 2022 (MLN): Pakistan International Bulk Terminal Limited (PIBTL) is considering to bring more efficiencies in cargo handling operations and volume consolidation, the management of the company informed while holding a corporate briefing session on Monday.

Earlier, PIBTL entered into a Build Operate Transfer contract with Port Qasim Authority on 6th Nov’10 for the construction, development, operations, and management of a coal and clinker terminal at Port Qasim for a period of 30 years starting from Jul’17.

Current PIBTL coal or clinker handling capacity stands at 12 million and 4mn tons annually and the company also has a 15MW power plant used for energy requirements, breifing takeways covered by foundation securities.

On the expansion front, management decided to increase the production of clinker and coal up to 20mn tons per annum.

On the earnings side, PIBTL in FY22 incurred a loss of Rs991mn (LPS of Rs0.56) as compared to a profit of Rs1.9bn in FY21 (EPS of Rs1.04).

The decline in the company’s profitability is attributed to lower volumes handled by the company, exchange loss on translation of US$-denominated debt, and higher finance costs due to elevated interest rates.

Moreover, PIBTL revenue has decreased by 3% YoY in FY22 and management attributed this to an 18% YoY reduction in cargo handling.

PIBTL’s overall volume handling declined to 8.2mn tons in FY22 decreasing by 18% YoY against 10mn tons in FY21.

This volumetric decline is due to lower imports by the public and private sector given higher international coal prices, the slowdown of growth in the manufacturing sector amid economic consolidation and greater reliance on Afghan/domestic coal by cement players.

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