Corporate results: Dawood Hercules Corporation triples its earnings

Engro’s turnaround, HUBCO payout, higher earnings of fertiliser division propel profits.

KARACHI:

Dawood Hercules Corporation – a holding company – on its own posted a 222% growth in earnings from associated companies, which include investments in major companies like Engro Corporation and Hub Power Company. 

According to a notice sent to the Karachi Stock Exchange, Dawood Hercules’ profits clocked in at Rs609 million in the six-month period of 2013 ending on June 30 as Engro turned its losses into profits, while Hubco announced higher than expected payout for the same period. The earnings announcement was not accompanied by any payouts.

The Dawood Hercules Corporation is a holding company that has several other business interests including a 38% stake in the Engro Corporation. Dawood Hercules Fertilizers is its only wholly-owned subsidiary, but the concern has contributed less and less to the group’s profits every year.

The holding company witnessed a stellar semi-annual period, where it managed to boost its dividend income by 183% to Rs744 million, and through containing expenses its operating profit for the year jumped 325% to Rs629 million in the period under review.

The notice also contained the results for Dawood Hercules Fertilizers where the fertiliser manufacturer’s earnings clocked in 2.9 times higher to Rs1.908 billion for the semi-annual period, compared to Rs657 million in the corresponding half-year period of last year.

Dawood Hercules Fertilizers has the capacity to produce about 456,000 tons of urea. The company is located in central Punjab, close to Lahore. The location has historically been strategically advantageous, allowing the plant quick access to markets in Pakistan’s agricultural heartland.

Published in The Express Tribune, August 30^th, 2013.

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