OGDCL profit down 20pc to Rs24.120bln in Q3

KARACHI: Oil and Gas Development Company Limited (OGDCL) profit declined 20 percent to Rs24.120 billion in the quarter ended March 31, 2021, translating into earnings per share (EPS) of Rs5.61, a bourse filing said on Tuesday.

The company earned Rs30.010 billion with EPS of Rs6.98 during the same period last year. The company announced third interim cash dividend at Rs1.80/share in addition to earlier interim dividends of Rs3.60/share.

OGDCL’s nine month profit in fiscal year 2020-2021 declined 20 percent to Rs66.346 billion compared to Rs83.122 billion in the same period last fiscal. The EPS in 9MFY21 was Rs15.43 compared to Rs19.33 in the same period of FY20.

Net sales clocked at Rs176.382 billion, while the company paid Rs11.153 billion as royalty, which would ultimately be transferred to the provinces. Taxes during the nine month period were Rs41.771 billion.

During the period under review, OGDCL acquired 2,192 line kilometres of 2D and 387 kilometres of 3D seismic data. “On the drilling front, OGDCL spud 13 wells. The average daily net production for the period under review stood at 36,836 barrels of oil per day, 865 million MMCFD of gas and 802 tons of LPG per day,” a company statement said.

OGDCL won ten new exploration licenses with operatorship and one block as a joint venture partner. The company has also participated in an offshore opportunity in Abu Dhabi through a consortium and the proposal is at an advanced stage of consideration with the UAE authorities.

Byco Petroleum posts Rs1.217bln Q3 profit

Byco Petroleum Pakistan Limited posted net profit of Rs1.217 billion during the quarter ended March 31, 2021, compared to a loss of Rs2.886 billion during the same quarter last year.

The current EPS stands at Rs0.23 compared to loss per share (LPS) of Rs0.54 during the quarter ended March 31, 2020.

The refinery earned Rs2.179 billion profit in 9MFY21 compared to a loss of Rs2.672 billion in the nine months period of FY20.

Gross revenues dropped to Rs150.1 billion from Rs192.1 billion posted in the same period last year, due to pandemic-induced drop in oil prices in 2020.

Price risk mitigating measures implemented during this period improved inventory management, which resulted in gross profits more than quadrupling to Rs5.47 billion from Rs1.19 billion the previous year, a company statement said.

Operating profit rose to Rs4.04 billion from Rs0.24 billion in 2020, including the impact of a modest increase in operating expenses.

International oil prices have risen sharply in the current fiscal year, with Brent crude increasing from $45 a barrel in early July 2020 to above $60 a barrel by the end of March 2021, as a result of the ongoing global economic recovery. Pakistan’s business environment improved, while strong remittance inflows strengthened the rupee, with domestic consumption of oil products stabilising during the period.

These factors provided some respite to the battered domestic oil industry.

Byco’s CEO, Amir Abbassciy said, “We are engaged in discussions with the government, expecting their support to the petroleum refining sector so that we can upgrade our plants and achieve sustainable margins.”

Byco is Pakistan's largest oil refiner by design capacity, and is the nation’s only firm having a dedicated Single Point Mooring (SPM). Byco's SPM is the only floating liquid port in the country, and the company employs a round-the clock crew dedicated for the safety and security of the buoy and vessels in and around the SPM's anchorage.

Nestle Pakistan Q1 profit up 66pc

Nestlé Pakistan Limited profit increased 66 percent to Rs3.209 billion in the quarter ended March 31, 2021, translating into EPS of Rs70.77, a bourse filing said.

The company earned Rs1.938 billion with EPS of Rs42.76 in the same quarter last year.

It posted revenue of Rs32.3 billion for the period, posting an increase of 8.2 percent compared to the same period last year, despite many difficulties emanating from the Covid-19 crisis.

Net profit for the quarter improved due to lower financing cost owing to reduction in the policy rate, a company statement said.

The growth was driven by volume increase and pricing management and benefitted from the improvement in the macro-economic situation of the country. Operating profit of the company improved compared to the same period of last year due to various cost savings initiatives across the value chain and better absorption of fixed overheads.

ICI Pakistan profits jump 300pc in Q3

ICI Pakistan’s consolidated profit jumped 300 percent to Rs1.884 billion during the three-month period ended March 31, 2021, with EPS of Rs21.24, a bourse filing said.

The company earned Rs471.296 million during the same quarter last fiscal, with EPS of Rs5.76. There was no announcement of dividend.

During the nine-month period ended March 31, 2021, the company earned Rs4.318 billion, up 86 percent, from Rs2.317 billion during 9MFY20 (EPS was Rs49.58 in 9MFY21 compared to Rs25.81 in the same period last fiscal).

On a consolidated basis, including the results of the company’s subsidiaries: ICI Pakistan PowerGen Limited and NutriCo Morinaga (Private) Limited) net turnover for the nine months period under review was Rs48.085 million, an 8 percent increase over the same period last year.

The operating result at Rs6.449 billion is higher by 28 percent in comparison to the SPLY. The strong results were mainly driven by the polyester, pharmaceuticals and animal health businesses.

“These improved results were driven by operational excellence across all businesses, lower finance cost due to lower interest rate and debt levels, and a stable exchange rate as compared to the SPLY. The company recognised Rs402 million as share of profit from its associate - NutriCo Pakistan (Private) Limited,” a company statement said.

The board of directors of ICI Pakistan also approved an acquisition and merger proposal designed to enhance focus and consolidate the infant formula business. Approval was granted for the following: acquisition of 11 percent of the issued and paid-up share capital of NutriCo Pakistan (Private) Limited (NutriCo Pakistan), which would increase shareholding of the company to 51 percent in NutriCo Pakistan. NutriCo Pakistan is engaged in the business of importing, marketing and distributing Morinaga Milk Industry Co, Ltd Japan products in Pakistan.

It also approved the merger/amalgamation of NutriCo Pakistan with and into NutriCo Morinaga (Private) Limited (NutriCo Morinaga). NutriCo Morinaga, a subsidiary of the company, is a joint venture with Morinaga Milk Industry Co, Ltd Japan and Unibrands (Private) Limited engaged in the business of locally manufacturing infant/growing up formula. The company’s shareholding in NutriCo Morinaga post merger would remain at 51 percent.

ICI Pakistan Limited Chief Executive Asif Jooma said he was pleased with the progress the company has made in the last nine months, consistently delivering robust results while capitalising on the domestic demand recovery of the economy following the second wave of Covid-19.

“Navigating through these trying times, we remain steadfast to our core values of customer centricity and delivering enduring value to all our stakeholders. We will continue building upon these results to realise the company’s promise of cultivating growth,” he added.

Philip Morris Pakistan profit up 99pc in

Philip Morris Pakistan Limited net profit climbed 99 percent to Rs718.4 million for the first quarter ended March 31, 2021, compared to a profit of Rs361.4 million for the same period last year.

The basic EPS clocked in at Rs11.67 in the Q1 2021, compared to Rs5.87 in the same quarter last year.

The company's domestic net turnover stood at Rs4.44 billion reflecting an increase of six percent versus the same period last year.

While the introduction of track and trace system promises stringent action against tax evasion, the delayed implementation continues to take a toll on the legally compliant tax-paying cigarette industry in the form of non-tax paid illicit sector.

The advertising and marketing restrictions also negatively impact the operating landscape for the legally compliant cigarette sector.

In March 2020, the government issued a Statutory Regulatory Order further restricting advertising, promotion and sponsorship of tobacco and tobacco products.

Roman Yazbeck, Managing Director at Philip Morris Pakistan, said that in 2013, the share of non-tax paid illicit sector was 23 percent, but due to delay in adequate response, it has now captured almost 40 percent of the market. He urged to expedite the fight against illicit cigarette trade, as it was causing annual revenue loss in the range of Rs70-77 billion to the national exchequer.