January 31, 2021 (MLN): The highlights of the important economic and business events that took place during the last week are in order so as to become acquainted with the recent developments in Pakistan’s economic and public policy.
Events of Importance through the Week:
The State Bank of Pakistan (SBP) imposed a monetary penalty of Rs.59.516 Million on Habib Metropolitan Bank (HMB) on account of a violation of its guidelines pertaining to AML/CFT.
In addition to this, with a view to further align Anti-Money Laundering, Combating the Financing of Terrorism & Countering Proliferation Financing (AML/CFT/CPF) Regulations with the Financial Action Task Force (FATF) Recommendations, SBP decided to amend some provisions of the Regulations.
Besides, the International Monetary Fund (IMF) revised Pakistan’s GDP growth rate forecast upward to 1.5 percent for the current fiscal year 2021 and 4 percent for the next fiscal year 2022 in its World Economic Outlook update for January 2021.
Meanwhile, the Federal Board of Revenue (FBR) collected net revenues of Rs.2570 billion during the first seven months of current fiscal year, significantly exceeding the target of Rs 2550 billion set for the period.
On the downside, Pakistan’s rank slipped by four places to 124th among 180 countries in International Corruption Perceptions Index (CPI) in 2020.
on the upside, Pakistani companies received orders worth two million dollars at an international trade fair held in Sudan last week.
Furthermore, Oil and Gas Regulatory Authority ‘provisionally’ determined the Sui Southern Gas Company (SSGC)’s shortfall in estimated revenue requirement for the fiscal year 2020-21 at Rs14,270 million including ‘prior year shortfall of Rs50,983 million.”
Announcements
On the equity front, Panther Tires Limited successfully raised Rs 2.63 billion through a two-day book building process concluded on Thursday.
The Executive Management of Hi-Tech Lubricants Limited (HTL) initiated expansions at the Plant Site of Hi-Tech Blending (Pvt.) Ltd. (HTBL) (a wholly-owned subsidiary of HTL) considering future high volumes of sales projections and an increase in demand for locally blended products.
Mari Petroleum Company Limited (MPCL) has been awarded provisional new exploration blocks by the Directorate General of Petroleum Concessions (DGPC) after competitive bidding, on the basis of work units committed by different E&P Companies in the Block Bidding Round 2020 arranged by the Government.
Oil & Gas Development Company Limited (OGDCL) also awarded provisional new exploration blocks by the Directorate General of Petroleum Concessions (DGPC) after competitive bidding round for exploration blocks held by the Government in January 2021.
Moreover, the government of Pakistan provisionally awarded a new block ‘Suleiman’ (Block No. 3069-9) situated in Balochistan, for exploration rights to the joint venture formed between Oil and Gas Development Company Limited (OGDCL)and the Pakistan Petroleum Limited (PPL), after competitive bidding, on the basis of work units committed by different E&P Companies in the Block Bidding Round 2020 arranged by the Government.
Shehzad Textile Mills installed 20 new Knitting Machines for Socks & Hosiery manufacturing Units which started Commercial Productions from Friday 29th January 2021.
ICI Pakistan Limited (ICI), secured the Board’s approval for an additional 10,000 TPA expansion of Light Soda Ash after finalization of negotiations with equipment and other suppliers. This will place the total capacity expansion at 135,000 TPA.
Optimus Capital Management submitted a Public Announcement of Offer to acquire up to 14.77% shares of the total issued ordinary share capital of United Distributors Pakistan Limited, on behalf of Genesis Holdings Private Limited.
System Limited (SYS) provided an auditor certificate confirming paid-up capital of 123 million shares i.e Rs 1.23 billion on the request of the Pakistan Stock Exchange.
The Pakistan Stock Exchange Limited (PSX) carried-out the exercise of re-composition of Oil & Gas and Banking Sector Tradable Indices for the review period from July 1, 2020 to December 31, 2020.
Financial Results:
Apart from this, several listed companies announced their financial results last week amid ongoing earnings season. Some of the important ones are as follows:
Aisha Steel Mills Limited (ASL) witnessed a turnaround in earnings as its net profits after tax clocked in at Rs 2.52 billion with earnings per share at Rs 3.21, compared to the net losses of Rs 285.3 million (LPS: Rs 0.45) incurred in the same period of last year.
Honda Atlas Cars (Pakistan ) Limited (HCAR) reported a decent net profit of Rs 897.65 million with earnings per share (EPS) of Rs 6.29 compared to the profits of Rs 710 million (EPS: Rs 4.97) in the corresponding period of last year, marking a jump of 26.4% YoY
International Steels Limited (ISL) announced financial results for the 1HFY21, where the company posted a 5.95x increase in net profits to Rs 2.7 billion with earnings per share (EPS) of Rs 6.38, as opposed to the profits of Rs 465.9 million (EPS: Rs 1.07) in 1HFY20.
ICI Pakistan Limited (ICI) announced 1HFY21 results today, as per which the company posted consolidated profits of Rs 2.43 billion with earnings per share (EPS) of Rs 28.34, as opposed to the profits of Rs 1.84 billion (EPS: Rs 20.05) in the same period of last year, showing a growth of 32% YoY.
Archroma Pakistan Limited (ARPL) unveiled its financial results for the first quarter ended December 31, 2020, as per which the company posted its profit after tax of Rs 479 million (EPS: Rs 14.06) i.e. nearly 44% higher than the net profits of Rs 333 million (EPS: Rs 9.77) of the corresponding period last year.
Fauji Fertilizer Company (FFC) announced CY20 results today, as per which the company posted consolidated profits of Rs 29.7 billion with earnings per share (EPS) of Rs 23.38, as opposed to the profits of Rs 17.3 billion (EPS: Rs 13.62) in CY19, showing a significant jump of 71.6% YoY.
Lucky Cement Limited (LUCK) announced its financial results for the half-year ended on December 31, 2020. As per the results, the company witnessed a massive growth in its consolidated net profits by 3.2 times YoY to Rs 12.44 billion against Rs 3.92 billion reported in the same period last year.
Fauji Foods incurred losses of PKR 2.4 billion in 9MCY20 i.e. around 27% lower than the losses witnessed in the same period of last year.
LOTCHEM’s profitability nosedived by 78% YoY during 9MCY20 to Rs 1.037 billion (EPS: Rs 0.69).
National Refinery Limited continued to suffer financial losses owing to lower revenue as it incurred losses of Rs. 1.31 billion (LPS: 16.4) during the quarter ended September 30, 2020, i.e. nearly 93% higher as compared to the losses made in the same period of last year.
International Steel Ltd’s profits grew by 61% YoY in 1QFY21 to Rs 559 million (EPS: Rs 1.29) against net profits of Rs 347 million (EPS: Rs 0.80) of the same period last year.
Attock Petroleum Ltd. (APL) revealed its financial result for 1HFY21, where the company posted net profits of Rs 2.14 billion with earnings per share EPS of Rs 21.56, as against the profits of Rs 1.58 billion (EPS: Rs 15.88) reported in the same period of last year, showing a jump of 35.7% YoY.
Bank Al Habib Limited (BAHL) unveiled its financial results for CY20, as per results, the bank’s profitability has substantially increased by 60.5% YoY to stand at Rs 17.95 billion against Rs 11.19 billion of the same period last year.
Attock Cement Pakistan Limited (ACPL) announced its 1H financial result, where consolidated earnings came in at Rs 1.24 billion with earnings per share (EPS) of Rs 7.02, up by 7.8% YoY.
Pakistan Oilfields Limited (POL) announced its financial results for 1HFY21, with earnings clocking in at Rs 6.7 billion (EPS: Rs 23.76) as compared to Rs 8.73 billion (EPS: Rs 30.73) in the same period last year, down by 22.7% YoY.
Attock Refinery Limited (ARL) reported net losses of Rs 224 million for the 1HFY21 ended December 31, 2020, depicting a massive 72.6% YoY decline against a net loss of Rs 819 million of the corresponding period last year.
National Refinery Limited (NRL) incurred losses of Rs 822 million during 1HFY21 ended December 31, 2020, depicting a decline of 72.44% YoY against a net loss of Rs 2.98 billion in the same period of last fiscal year.
Fauji Fertilizer Bin Qasim (FFBL) witnessed a turnaround in earnings as its profits after tax for the CY20 clocked in at Rs 6 billion against the net loss of Rs 8.37 billion in CY19.
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