Business

Corporate results: Profits all around

Pakistan Petroleum Limited’s net profit soared 45 per cent, Nishat Chunian profits surge 175 per cent.

Express April 30, 2011

Pakistan Petroleum profits soar 45%

Pakistan Petroleum Limited’s net profit soared 45 per cent to Rs24.4 billion on the back of higher oil and gas production in the first nine months of 2010-11 fiscal year.

Crude oil prices, rising by 20 per cent in the international market during July-March 2010-11, also played well for the country’s second largest oil and gas explorer, says an InvestCap research note.

The company’s average oil and gas production rose by 59 per cent and 2 per cent, respectively, on a yearly basis during the period under review.

Incremental flows from Tal block and commencement of production from Hala and Nashpa fields pushed up production. There was 128 per cent increase from Tal block coupled with fresh flows from Adam and Nashpa fields, adds the note.

Higher wellhead gas prices of Sui and Kandhkot pushed up the company’s revenue by 35 per cent to Rs57.89 billion.

Moreover, field expenditures rose by 18 per cent to Rs15 billion on the back of company’s accelerated exploration activities.

The company’s scrip crawled down Rs0.05 to close at Rs212.43 during trade at the Karachi Stock Exchange on Friday.

Nishat Chunian profits surge 175%

Nishat Chunian Limited announced stellar results on Friday as net profit more than doubled in the first nine months of fiscal 2011, beating all market expectations.

Net profit of the textile maker jumped 175 per cent to Rs1.28 billion from July 2010 to March 2011 compared with Rs486.73 million in the same period a year earlier, according to a notice sent to the Karachi Stock Exchange.

Analysts’ forecasts were 15 per cent less than the actual profit as they expected it to be in the range of Rs1.1 billion.

Nishat’s revenues rose by 55 per cent to Rs14.5 billion on the back of not only increased volumetric sales but also a significant rise in selling prices, according to JS Global Capital.

Usage of leftover cotton from last year and timely investment in procurement of cotton from October to December 2010 for the entire current fiscal year at an average rate of Rs8,500 per maund, would allow the company to reap benefits of escalating cotton prices, said JS Global Capital analyst Rabia Tariq.

Finance cost jumped by 32 per cent owing to increased working capital requirement to procure expensive raw material, added Tariq.

Published in The Express Tribune, April 30^th, 2011.

COMMENTS (2)

aslambeig | 12 years ago | Reply a few companies showing huge profits only helps the rich in pakistan. Give another yr and most the industry will be in doldrums.

neutraleconomist | 12 years ago | Reply These profits will support the economy. If profits are announced, it means taxes has to be paid and money re-invested thus creating jobs. Pakistan's enemies are wishing that Pakistan's economy will go down. It has done better than expected. It hasn't contracted. We went through worst floods and earthquakes. We still developed though at a much slower pace.

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