PSO profit increases to Rs8.720 billion in Q3

KARACHI: Pakistan State Oil (PSO) net profit increased to Rs8.720 billion during the quarter ended March 31, 2021, translating into earnings per share (EPS) of Rs18.57, a bourse filing said on Thursday.

The company had posted a loss of Rs3.426 billion with loss per share of Rs7.30 during the same quarter last fiscal. There was no announcement of cash back.

The company’s 9MFY21 profit surged 506 percent to Rs18.242 billion during the nine-month period ended March 31, 2021, from Rs3.008 billion during the same period last fiscal. The EPS stood at Rs38.86 during July-March 2020/21, compared to Rs6.41 during the same period last fiscal.

“The two major drivers of this phenomenal profit were inventory gains and finance costs,” an analyst at JS Global Capital said.

“The inventory gains can be gauged by simply looking at gross margins, which have surged from 2.3 percent in 9MFY20 to 4.4 percent in 9MFY21. And this becomes even more visible if we look at the numbers on a quarterly basis; gross margins which stood at merely 1.0 percent in Q3FY20 have jumped to 6.0 percent in Q3FY21.”

“PSO continues to outperform the energy market,” a company statement said, “despite the challenges posed by the pandemic which demonstrates the company’s resilience and dependability”.

The board of management (BoM) reviewed the company’s performance together with its subsidiary Pakistan Refinery Limited (PRL) during the meeting held at PSO House, Karachi on Thursday.

During 9MFY21, the company registered an astounding volumetric growth of 21.6 percent over the same period last year, while increasing market share by 260 basis points (bps) closing at 46.3 percent.

“The significant increase in profit is primarily attributable to increase in gross profit on account of volumetric increase supplemented by favourable price regime, reduction in finance cost and lower discount rate prevalent during the period,” PSO said.

PRL, a subsidiary of PSO, also reported a profit after tax of Rs0.6 billion during the period under review vs a loss of Rs6.8 billion in 9MFY20.

PPL posts net profit of Rs38.11bln in 9MFY21

Pakistan Petroleum Limited (PPL) has announced a net profit of Rs38.11 billion translating into earning per share (EPS) of Rs14.01 for the nine month period ended March 31, 2021 compared with the profit of Rs38.59 billion and EPS Rs14.18 in the corresponding period last year.

PPL posted net profit of Rs11.88 billion and EPS of Rs4.37 during 3QFY21 compared to Rs14.674 billion and EPS Rs5.40 in 3QFY20, down by 19 percent.

Net sales during Q3FY21 dropped by 10 percent clocking-in at Rs36.69 billion compared to Rs40.81 billion last year.

“Sales declined due to fall in wellhead price of Sui by 13 percent, and drop in gas production by 1 percent,” an analyst at Arif Habib Limited said.

On a cumulative basis, revenues tumbled by 11 percent arriving at Rs112.235 billion in 9MFY21 amid decrease in oil and gas production by 1.0 percent and 3.0 percent, respectively and plunge in oil prices by 19 percent.

The exploration costs reached Rs470 million in Q3 bFY21, plummeting by 77 percent owed to one dry well (Qadirpur Dep X-01) during the quarter against two dry wells (Zarbab and Nashpa-5A) in the same period last year.

Hence, the exploration cost in 9MFY21 witnessed a slide of 74 percent, settling at Rs3.617 billion given two dry wells during the period versus seven dry wells in same period last year.

K-Electric earns Rs9.443bln profit in 9 months

K-Electric (KE) has reported a net profit of Rs9.443 billion for the nine-month period ended March 31, 2021, and an EPS of Rs0.34 compared with the profit of Rs3.59 billion and EPS of Rs0.13 recorded in the corresponding period last year.

The earnings included Rs8.8 billion actual write-off claim as per the mechanism provided under KE’s multi-year-tariff (MYT).

Total revenues during the period under review clocked in at Rs174.07 billion, up 20.8 percent from Rs144.35 billion last year.

During the period under review, the company’s financial and operational performance improved as the macroeconomic environment gained momentum along with continued investments of over Rs57 billion across the power value chain.

Increased industrial and commercial activity resulted in increased power demand and drove the units sent-out by 7.2 percent for the 9-month period ended March 31, 2021.

CEO K-Electric Moonis Alvi, said, “As we complete the first half of Ramadan 2021, I commend the commitment of the government of Pakistan, Ministry of Energy (Power Division), and NTDC towards the citizens of Karachi. Our joint efforts to complete the 220kV transmission line enabled us to meet the growing power demands of the city.”

With their support and commitment, Karachi is exempt from load shed during Sehr and Iftar times. “We hope to continue relying on this support as we enter the summer season, and look forward to signing the Power Purchase Agreement (PPA) with NTDC after getting necessary approvals from the government of Pakistan.”

IMC Q3 profit up 35pc to Rs3.514bln

Indus Motor Company Limited profit went up 35 percent to Rs3.614 billion in the quarter ended March 31, 2021, compared to Rs2.679 billion during the same period last year.

The EPS was Rs45.98 in the period under review vs Rs34.09 during the same quarter last year. An interim cash dividend of Rs30/share was announced for the quarter, thus making the total dividend for the nine months ended March 31, 2021, Rs67/share.

Company’s sales clocked in at Rs51.51 billion, up55.8 percent from Rs33.05 billion in the same quarter last year.

“Revenue of the company increased as the company recorded vehicle sales of 16,531 units in Q3FY21 as compared to 11,125 units in Q3FY20,” a report issued by KASB Securities noted.

“Volumetric sales were up by 49 percent because of Toyota Yaris model launch and low-interest rate environment driven demand jump.”

In Q3FY21, the gross profit margin stood at 9.2 percent, lower by 291bps. “These margins were lower than our projections. We attribute hike in fright charges on CKD imports as well as currency volatility as major influencers for the lower than anticipated margins,” KASB report said.

Other income increased 29 percent to Rs1.43 billion owing to greater short-term investments and cash balances compared to the same period last year. To note, the healthy order book held by the company led to greater customer advances received, increasing the cash balance.

The finance cost declined 13.25 percent to Rs21.24 billion due to low interest rate regime.

The company’s 9MFY21 profit increased 69 percent to Rs8.415 billion in the nine-month period ended March 31, 2021, translating into EPS of Rs107.07, a bourse filing said. It earned Rs4.984 billion with EPS of Rs63.41 during the same period last fiscal.

The net sales turnover for the nine months ended March 31, 2021 increased by 73 percent to Rs131.16billion as compared to Rs75.83 billion in the same period last year, while profit after tax also increased by 69 percent to Rs8.42 billion, as against Rs4.98 billion achieved in the same period last year.

The increase in turnover and profitability for the nine month period was mainly due to higher sales volume and increase in other income. The gross profit margin declined to 8.2 percent against 10.3 percent in the same period last year, mainly on account of increase in material cost.

IMC CEO Ali Asghar Jamali said, “I am glad to see that business is returning to some state of normalcy. In fact, March 2021 saw the highest ever production levels at IMC, as a consequence of marked improvements in global supply chain.”

He appreciated the government’s efforts in promoting the ‘Make in Pakistan’ approach. “We request the government to draw up the new Auto Policy 2021 – 2026 that encourages incentives to promote HEV technology in addition to incentives currently offered for electric vehicles, as well as localisation that generates employment not only for OEMs, but for auto parts-makers as well.”