February 21, 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:
An International Monetary Fund (IMF) team led by Ernesto Ramirez Rigo, concluded virtual discussions with the Pakistani authorities and reached a staff-level agreement on the second to fifth reviews of the authorities’ reform program supported by the IMF 39-month Extended Fund Facility (EFF) arrangement for the amount of SDR 4,268 million (about US$6 billion.
To promote exports, exporters of goods and services, including IT based services, are allowed to retain a certain portion of their exports proceeds in their Special Foreign Currency Accounts. The fund from these accounts, however, could be utilized for specified purposes only.
On Friday, the Economic Coordination Committee (ECC) of the Cabinet approved the revocation of the Neelum Jhelum surcharge with immediate effect.
On Thursday, Prime Minister Imran Khan said the government was committed to facilitate the overseas Pakistanis so as to tap their immense potential and divert their financial contribution towards economic growth
On Wednesday, the Drug Regulatory Authority of Pakistan (DRAP) granted ‘Emergency Use Approval’ to the CanSinoBIO Recombinant COVID-19 Vaccine Adenovirus Type 5 Vector (the “Ad5-nCoV”) and its marketing through the private and public sector.
Furthermore, for the development of Pakistan’s IT Industry, the Pakistan Software Export Board (PSEB) will sign a Memorandum of Understanding (MoU) with the Pakistan Stock Exchange (PSX) soon, ensuring sustainable growth of Pakistan’s IT sector in the country.
Besides, based on feedback from the diaspora and recommendations from SBP, the Federal Government introduced several amendments in the Income Tax Ordinance 2001 through Tax Laws (Amendment) Ordinance 2021 to make the taxation regime simple, convenient, and hassle-free for Non-Resident Pakistanis (NRPs) maintaining Roshan Digital Accounts (RDAs).
On Monday, Prime Minister Imran Khan Monday rejected a summary of the Oil and Gas Regulatory Authority (OGRA) proposing an increase of Rs 14.07 in petrol price, in order to provide relief to the masses.
Financial Results:
Apart from this, several listed companies announced their financial results amid the ongoing earnings season last week, some of which are as follows:
Millat Tractors Limited (MTL), reported a whopping 3.9x increase in net profits during 1HFY21 to Rs 2.94 billion compared to the profits of Rs 748 million in the corresponding period last year.
Fauji Cement Company Limited’s net profits during 1HFY21, skyrocketed by 3.3x to Rs 1.6 billion as opposed to Rs 482 million reported in the same period last year.
Kot Addu Power Company Limited (KAPCO) announced profits of Rs. 11.4 billion (EPS: 13.06) for the half-year ended December 31, 2020, which is merely 2% lower as compared to the earnings of the same period last year (SPLY).
Mari Petroleum Company Limited (MPCL) announced financial results of the 1HFY21, wherein the bottom-line of the company expand by 11% YoY to Rs 16.4 billion (EPS: Rs 3.06/sh) compared to the profits of Rs 14.7 billion (EPS: Rs 2.9/sh) in the corresponding period last year.
Meezan Bank Limited (MEBL) disclosed financial performance for the CY20, wherein the bank witnessed a 45.5% YoY increase in net profits from Rs 15.2 billion to Rs 22.16 billion.
Faysal Bank reported earnings of Rs. 6.68 billion (EPS 4.4) for the year ended December 31, 2020, i.e. nearly 11% higher as compared to the earnings of last year.
Engro Corporation Limited posted earnings of Rs. 44.3 billion for the year ended December 31, 2020, i.e. around 45% higher than the profits recorded in the previous year.
Pakistan State Oil Company announced its financial results for 1HFY21, wherein the bottom line of the company increased significantly by 2.13x to clock in at Rs 9.25 billion compared to Rs 4.34 billion in the same period last year.
Soneri Bank Limited earned Rs. 2.4 billion (EPS: 2.1772) during the year ended December 31, 2020, which is about 26% higher as compared to the profits earned last year.
Habib Bank Limited reported earnings of Rs. 30.9 billion (EPS: 21.06) for the year ended December 31, 2020, i.e. nearly double of what it earned during the previous year.
Kohat Cement Company Limited (KOHC) showed outstanding performance during 1HFY21 as its net profits after tax clocked in at Rs 1.47 billion, which is 15 times higher than profits of Rs 97.76 million reported in the same period last year.
Allied Bank Limited announced earnings of Rs. 18.3 billion (EPS: 16.05) for the year ended December 31, 2020, i.e. nearly 27% higher than the earnings recorded in the same period of last year.
Interloop Limited posted more than a twofold increase in net profits after tax from Rs 1.23 billion to Rs 2.77 billion during 1HFY21.
Askari Bank Limited (AKBL) wrapped CY20 with a final cash dividend of Rs 3 per share i.e. 30%. The bank’s net profits soared by 54% YoY to Rs 10.85 billion compared to the profits of Rs 7 billion in CY19.
Engro Fertilizers Limited (EFERT) earned Rs. 18.1 million (EPS: 13.58) during the year ended December 31, 2020, which is nearly 8% higher as compared to the earnings of the previous year.
Mughal Iron & Steel Industries Limited (MUGHAL) witnessed a sharp rise in net profits by 3.8x YoY during 1HFY21 to Rs 1.398 billion with Earnings per share EPS of Rs 5.56/sh, compared to Rs 366.48 million (EPS: Rs 1.46) in the corresponding year last year.
National Foods Limited posted earnings of Rs. 944 million (EPS: 4.4) for the half-year ended December 31, 2020, i.e. nearly 83% higher as compared to the earnings of the same period last year.
Dera Ghazi Khan Cement (DGKC) announced the financial results for the half-year ended December 31, 2020, wherein the company posted a Profit After Tax of Rs. 1.01 billion (EPS: 2.31), as compared to a loss of Rs. 946 million (LPS: 2.16) reported in the same period of last year.
Announcements
On the equity front, Crescent Star Insurance Limited (CSIL), on Thursday, informed PSX that being a major investor in Dost Steels Limited (DSL), clarified that it is not in possession of any material information, and nor is aware of any ongoing restructuring/acquisition deals as rumored.
Johnson & Phillips Pakistan Limited requested the Pakistan Stock Exchange to remove its name from the Defaulters’ Segment, as the discrepancy due to which the company was placed on the Defaulters’ Segment has been rectified.
The Board of Directors of JS Investments Limited (JSIL) at its meeting held on February 19, 2021, decided to proceed with the Merger/Amalgamation of JS ABAMCO Commodities Limited (JSACL) with and into JSIL.
The Board of Directors of Fauji Cement Company Limited (FCCL), in its meeting held on Friday, 19th February 2021, has approved subject to all regulatory approvals setting up of Greenfield Cement Manufacturing Plant of 2.05 Million Tons per annum at Dera Ghazi Khan. The equity portion of the expansion will be funded through Internal Cash Generation.
The Board of Directors of Mughal Iron & Steel Industries Limited, in its meeting held on February 19, 2021, approved an increase of ordinary paid-up share capital of the Company from Rs. 2,515,996,500/- to Rs. 2,918,555,940 /- by issuing of further 40,255,944 ordinary shares of the Company.
Fauji Fertilizer Company Limited, after completing the legal formalities, announced the incorporation of a wholly owned subsidiary with the name of “OLIVE Technical Services (Private) Limited” and registered it with the Securities and Exchange Commission of Pakistan (SECP).
Packages Limited submitted a Public Announcement of Intention (PAI) to acquire up to 7,500,000 ordinary shares of Tri-Pack Films Limited.
The Board of Directors of Kohat Cement Company Limited, in its meeting held on Wednesday, February 17, 2021, approved setting up of 7,800-10,000 tpd Cement manufacturing Plant along with 8-10 MW Waste Heat Recovery and 25MW Coal-fired Recovery Power Plants, in Khushab, Punjab.
Avanceon FZE, a subsidiary of Avanceon Limited incorporated in the United Arab Emirates, has been contracted to provide a comprehensive Solar Power System for one of the largest oil producers in the Middle East region.
Sapphire Textile Mills Limited agreed to form a Joint Venture Company with Carrington Textiles, the company informed PSX on Monday.
AGP Limited clarified false, incorrect, and misleading information circulating in the social and electronic media forums regarding the availability of Sputnik-V vaccine for Covid-19 through one of the prominent diagnostic centers in Pakistan.
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