KARACHI:
First gas and now cash woes, Sui Northern Gas Pipelines Limited’s (SNGPL) bad run continued as net profit dropped 64% to Rs168 million during the first quarter of fiscal 2012.
Increase in gas development surcharge by 51% to Rs2.5 billion eroded expected higher net profit, according to analysts.
The net profit figure is more than half of market expectation as analysts, on average, expected net profit to stand around Rs450 million.
The announcement did not go well at the Karachi Stock Exchange as stock price plummeted 3.4% to close at Rs17.15.
SNGPL is already facing issues as it is unable to supply gas to fertiliser plants, resulting in the government having to import 1.2 million tons of urea for $660 million to cover the shortfall of Rabi season.
Financial charges surprisingly stayed intact and rose just 7% to Rs767 million compared with Rs719 million in the same period last year. Unaccounted for gas is expected to stand at 9.2%, higher than the upper limit of 7%, according to Arif Habib Securities.
However, these are expected to come down as management has chalked out a plan to reduce it.
Other income fell 10% to Rs1.5 billion during the period under review from last year’s Rs1.7 billion.
Allied Bank posts strong growth of 32%
Allied Bank witnessed strong growth of 32% to Rs7.79 billion, in line with market expectations, during the first nine months of 2011, according to consolidates results sent to the Karachi Stock Exchange on Thursday.
Earnings were primarily driven by higher net interest income, lower loan losses and rising non-interest income, said JS Global Capital analyst Bilal Qamar.
Allied Bank, one of the big five bank of the country, managed to do better than the banking sector’s performance as the entire banking sector profits grew 20% in the first half of 2011.
Net interest income rose 12% to Rs37.2 billion during January to September. Higher KIBOR and rising yields on government paper are the primary growth drivers, added Qamar.
Provisions on bad loans more than halved to Rs1.4 billion against Rs2.8 billion in 2010, although analyst explained this as mainly shifting of the loan category.
Non-interest income jumped by 24% to Rs4.5 billion during the period under review, predominantly due to higher fee income and dividend income.
The company’s stock price fell Rs0.7 to Rs64.22 during trade at the Karachi Stock Exchange.
Published in The Express Tribune, October 21st, 2011.
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The guy who runs it, Mr Arif Hameed was an absolute ridiculous appointment; he surpassed (if im not wrong) 3 eligible and far more honest people than this guy. What do you expect is going to happen to the company. Management has everything to do with the company future.
Unaccounted for gas is expected to stand at 9.2%, higher than the upper limit of 7%, according to Arif Habib Securities. Financial charges surprisingly stayed intact and rose just 7% to Rs767 million compared with Rs719 million in the same period last year. Other income fell 10% to Rs1.5 billion during the period under review from last year’s Rs1.7 billion.