STANDARD CHARTERED ARRANGES RS. 1 BILLION SYNDICATED LOAN FACILITY
recently arranged a Rs. 1 billion syndicated loan facility to Sui
Northern Gas Pipelines Limited (SNGPL) to finance the company's
ongoing Gas Infrastructure Development Plan (GIDP). The project is
being carried out to displace furnace oil through the supply of
indigenous gas from Sui and newly discovered fields in the south to
power stations in and around Multan.
A signing ceremony,
attended by senior management teams of both Standard Chartered and
SNGPL, was held at SNGPL's premises in Lahore to commemorate this
occasion. Mr A. Rashid Lone, Managing Director signed on behalf of
SNGPL while Mr Azhar Hamid, Chief Executive signed on behalf of SCB.
Commenting on the transaction, Mr. Azhar Hamid, Chief Executive
Officer, Standard Chartered Bank stated, "Our commitment to
Pakistan is absolute. We are keen on building long term alliances with
reputable partners, resulting in synergies and value addition for not
only our customers but for the Pakistani nation at large. Our
partnership with SNGPL goes a long way in strengthening our promise to
provide continuous support towards the developmental needs of
DR. KHAWAJA AMJAD SAEED GETS QUAID-E-AZAM GOLD
Prof. Dr. Khawaja Amjad
Saeed, Principal Haley College of Banking & Finance, 5th
Constituent College of the University of the Punjab was awarded "Quaid-e-Azam
Gold Medal" in an impressive ceremony held in the office of
Tehrek-e-Karkunan-e-Pakistan for "Best Performance" in the
area of his contributions and services for developing youth for the
He was the first
Chartered Accountant to start teaching and besides holding eight years
of Corporate level experience, he has taught at the post graduate
level in Commerce, Economics and Business Administration at the
University of the Punjab Private Chartered Universities and
Professional Institutes at home and abroad.
He has authored 30
books and his work interaction extends to over 100 countries.
Internationally he has been honored by World Apex body of Accountants
— International Federation of Accountants (IFAC), New York with
appreciation scroll twice. He is a visiting Professor in several
Universities of SMRC regional and the World including Swinburn
University of Technology, Melbourne, Australia and Institute of
Management Technology, Ghaziabad, India.
He has the honor of
being the President of SMRC Business Schools and South Asian
Federation of Accountants and Institute of Cost and Management
Accountants of Pakistan.
His mission to serve
the society continues.
SHELL SCORE FOR MOR PRIZES
Shell's Score for More
promotion began on 1st January to concide with the Cricket World Cup
fever that was soon to rock the country. As the World Cup progressed,
the promotion caught on in leaps and bounds and attracted over 30,000
entries during the promotion period. Based on a simple game of
cricket, Shell Score for More was as simple as "the more you
score, the more you win."
Centred around a 4
"match" game, participating customers could score points or
"runs" by collecting scratch cards when fuelling up at Shell
stations. The higher they scored, the higher were their chances of
winning great prizes.
The promotion was
advertised heavily in the press and through colourful banners and
buntings at Shell stations. As participating customers chalked up
runs, Shell gave out fabulous prizes of 100 mobile phones, 50 DVP
Players, 6 Return Tickets to South Africa with stay and 3 cash prizes
of Rs. 100,000. Furthermore, the "Best Player of the World
Cup" won a Honda Civic VTi through Lucky Draw.
The prize distribution
ceremony to handover the Honda Civic VTi was held on April 25, 2003 at
Shamim Service Station, Yaseenabad, where the lucky winner, Mr. Ghulam
Fareed ul Haq, was given the keys of the car in a simple ceremony
attended by Shell's senior management and staff, the dealer and
members of the press.
PAK-LIBYA HOLDING CO.
The Board of Directors
of Pak-Libya Holding Company (Pvt.) Limited, in their meeting held on
March 25, 2003, applauded the efforts of the management for showing
remarkable all around improvements in their performance during the
first quarter of 2003. The meeting was chaired by Dr. Ahmed Muhamed
The Board also showed
its appreciation on the operating results of the company for the
quarter ended March 31, 2003 whereby the company has earned a gross
profit of Rs. 158.5 million and a net profit of Rs. 138.8 million,
which is a significant improvement from the corresponding period of
last year. This has made possible only due to restructuring of the
company and by effective and efficient management. The Board also
hoped that by virtue of the achievements of the first quarter, the
year-end results for 2003 would show a continuing trend of enhanced
productivity and profitability. In this quarter, the total sanctions
made amounted to Rs. 850 million while Rs. 600 million were disbursed
during the same period showing a substantial improvement. The Board
also approved an investment of Rs. 400 million in different projects
relating to construction, textile, financial and communication
Pak-Libya is a joint
stock company commenced its operations in 1980. Equally owned by the
Governments of Pakistan and Libya, the Company operates within the
framework of banking laws of Pakistan and its operations are routinely
supervised by the State Bank of Pakistan.
The authorized and
paid-up capital of the Company as on December 31, 2002 stood at Rs.
4,000 million and Rs. 2,103 million respectively. Since inception, the
Company has made cumulative investments of around Rs. 8.5 billion in
over 200 industrial projects and has paid cumulative dividend of Rs.
2.2 billion to its shareholders as cash and stock dividend. Pak-Libya
has also played a vital role in the development of the capital market
of the country as well as its treasury is also one of the best among
the Development Financial Institutions.
The Company has
recently undergone with some administrative and financial
reconstruction with a focus to improve efficiency and its positioning
in the market. The management has also planned to explore the new
investment/financing avenues to tap the potential in the consumer
financing market. With an improved efficacy, better operating results
and future plans for growth, the company is now poised for attaining
new heights of growth and profitability.
The representative of
the shareholders of the company i.e. the State Bank of Pakistan and
the Libyan Arab Foreign Investment Company also met on April 24, 2003
to approve the accounts of the company for the year ended December 3l,
2002 and recognised the improved performance of the company.
MCB ANNOUNCES INTERIM CASH DIVIDEND
The Board of Directors
of Muslim Commercial Bank, which met in Lahore on April 28, 2003,
under the Chairmanship of Mian Muhammad Mansha, has announced an
interim cash dividend of Rs. 1.50 per share for the first quarter of
the year 2003 ending 31st March, 2003.
Muslim Commercial Bank
is the only bank in Pakistan which gives dividends on the basis of
quarterly performance. In the year 2002 also, Muslim Commercial Bank
gave a bonus of 10% to the shareholders for the corresponding period.
statements presented to the Board of Directors, showed that during the
first quarter the bank earned a Profit Before Taxation of over Rs. 1.2
billion which was 81% higher than that of period January-March, 2002.
The net profit after provision for tax of Rs. 460 million, was Rs.
743.7 million. After appropriation of Rs. 148.7 million for statutory
reserve and Rs. 600 million for General Reserve, the Board of
Directors recommended an interim dividend of Rs. 15% to the
shareholders for the year 2003.
SAIGOLS QINGQI MOTORS LIMITED — A SUCCESS STORY
1994 saw the beginning
of the largest joint venture in the private sector of Pakistan,
Saigols Qingqi Motors Limited, a combination made up of the Saigol
Group of Companies and the China Qingqi Group.
China Qingqi Group's
vast and diverse experience, combined with the Saigol Group of
Companies long-standing credibility and business acumen, has brought
to light the enormous success and the vast future potential of Saigols
Qingqi Motors Limited.
The Saigol Group of
Companies realized the dire need for low-cost transportation in
Pakistan. The motorcycles being manufactured at the time was way above
the affordability level of a vast majority of people. Undeniable is
the fact that affordable transportation plays a pivotal role in the
economic development of any country, Pakistan being no exception.
The forecast and vision
of China emerging as a formidable industrial power was envisioned by
the Board of Directors, Saigol Group and the Chairman, Mr. Azam Saigol.
This and the enduring friendship shared between Pakistan and China
over the decades became the rationale for the decision of partnering a
business concern from China.
The China Qingqi Group
is a state-owned enterprise and one of the largest manufacturers of
motorcycles and scooters in the world. China Qingqi Group's gambit of
activity includes industrial manufacturing, trade, scientific
research, medicine, information technology, construction, hospitality
and agriculture. CQG has an active presence in 32 countries and is the
pioneer of the two and three-wheeler, with over 40 years of
Saigols Qingqi Motors
has created a virtual revolution in modern-day transportation in
Pakistan wit the Qingqi 3-wheeler and the recently launched 100cc, 4
stroke, two wheeler. The company has one sole objective in mind; to
provide affordable, quality transportation to customers and provide a
comprehensive after-sales service with full back-up of spare parts.
Saigols Qingqi Motors
is ISO 9001-2000 certified and carries the stamp of approval of the
Pakistan Standards & Quality Control Authority. The plant has an
annual production capacity of 60,000 units. With the growing market
demand, it's anticipated production facilities will be expanded in the
ALLIANZ EFU'S SUPPORT TO NEEDY PATIENTS
Allianz EFU recently
participated in a fund raising event organised by one of the leading
hospitals of its network, with the aim of extending support to the
needy patients of Pakistan.
With the intention of
playing an active role in uplifting the local community and providing
solutions to community problems, Allianz EFU aims to encourage and
promote such activities.
people healthy and taking care of them is what we specialize at and we
want to distinguish ourselves as a care company. One of our goals is
to improve accessibility to quality healthcare in Pakistan,"
said, Mr. Ahmirud Deen, the Chief Executive Officer of Allianz EFU.
commitment to the people of Pakistan is reflected by its continuous
strive to make its services easily accessible in Pakistan. Its
genuine, affordable service propositions to the consumers of Pakistan
makes the company unique in its operations.
Allianz EFU is
Pakistan's first and only specialized health insurance company. It is
the only company that offers health insurance solutions to
individuals, families, companies and volunteer groups. Allianz EFU
Health Insurance is a joint venture between Allianz Group and EFU
Group. Founded in 1890 in Germany, Allianz AG has 60 million clients
in over 70 countries, with a broad range of services via an
international network of subsidiaries.
NEW CERTIFICATE OF MUSHARIKA RATES
First Grindlays Modaraba has revised
the rates on its Certificates of Musharika with effect from 28th April
The revised rates
applicable on various tenors are as follows:
PSO DECLARES ITS SECOND SUCCESSIVE INTERIM DIVIDEND
The Board of Management, Pakistan
State Oil (PSO), met at Company's head office PSO House on April 25,
2003 to review the third-quarter FY-03 accounts of the country's
largest and premier oil marketing entity. Mr. M. Salim, Chairman,
BoM, was in the chair.
Mr Tariq Kirmani, Managing
Director, PSO, briefed the BoM members on the performance during the
quarter ended March 31, 2003.
During the third quarter of FY-03,
the BoM noted, the PSO sales revenue increased to Rs. 55.09 billion,
up by 30% over prior year period, thus, achieving an all-time record
since the inception of the company. On year-to-date basis, the sales
revenue stood at Rs. 156.39 billion (an increase of 21.6%).
For the period January-March,
2003, the company earned profit before tax of Rs. 1.78 billion,
which has remained consistent over corresponding period last year,
while it posted the profit after tax posted of Rs 1.195 billion. The
YTD increase was very vivid and pronounced as the company posted
unprecedented profit before tax of Rs. 4.68 billion, registering an
impressive growth of 82% over the same period last year. The profit
after tax also rose to Rs 3.26 billion (up by 90.5%).
Based on the phenomenal financial
performance, the Board of Management announced a cash dividend of Rs
3/- per share (30%) to its shareholders, Rs. 1/(10%) more than that
declared for the corresponding period last year. Combined with the
earlier declared interim half-yearly dividend of 60% (Rs.6 per
share), the total payout comes to 90% for the first nine months of
the FY03. This will result in a cash payout of Rs. 1.54 billion as
The Board observed that the
January-March 2003 period witnessed continued global upheavals owing
to the changed geo-political scenario specifically in the Middle
East resulting in consumption drop. The company had to maintain high
inventory level due to regional political environment which also
resulted in higher financial charges. However, despite all these
adverse factors and the overall industry decline of 7.2%, coupled
with stiff competition from the existing as well as new entrants,
PSO further consolidated its position — specifically in white oil
products — and increased its market share of Mogas (42%), Diesel
(60%), Jet A-1 (69%), and Kerosene (72%) on year-to-date basis. Even
in Fuel Oil, despite fierce competition owing to free market
conditions with the induction of new players as well as traders and
importers, the company showed increase in its participation, which
stood at 77.6%.
The BoM also observed that not
only remarkable increase in profits but also the consolidation
process of the company in terms of market shares were primarily due
to well-comprehended initiatives taken by the management leading the
company in the right direction. The Board appreciated the launch of
novel and futuristic products like Fleet and Corporate cards,
introduction of self-lock seals for tank-lorries, along with
inauguration of state-of-the art Into-plane & Fuel Farm
Facilities at new Allama Iqbal Terminal at Lahore.
The Board appreciated the
commendable performance of the company and expressed that with the
successful implementation of ambitious projects and strategic
initiatives of the management, PSO would set newer landmarks, which
can be emulated by all its contemporaries.
AGM OF PAKISTAN PTA LIMITED HELD
The 5th Annual General Meeting of
Pakistan PTA Limited was held on 23 Apr 2003 at Karachi. Photo shows
Chairman Pakistan PTA Limited Mr Azhar A Malik, (centre) responding
to a shareholder's question. He is flanked on the left by the Chief
Executive, Pakistan PTA Limited Mr Jonathon R Stoney and alternate
Directors M/s M Afzal Jamil and Asif Jooma and on the right side by
the Company Secretary & Vice President Finance, Aamer M Malik,
Directors M/s Rafiq Akhund and F W Vellani.
Pakistan PTA Limited held its
Annual General Meeting on Wednesday 23 April in Karachi. The Company
reported improved results for 2002 compared to 2001, albeit the
improvement took the form of a smaller loss than the year before.
Pakistan PTA Limited manufactures Pure Terephthalic Acid (PTA), used
in making polyester fibre, at a large plant at Port Qasim. The
business started out in 1998, as a unit of ICI Pakistan Limited but
it was demerged, becoming a separately quoted company in 2001. 25%
of the shares of Pakistan PTA are held by ICI Pakistan, and another
69% by ICI Plc (through ICI Omicron BV). The plant has a design
capacity of 400,000 tonnes per year, and actual output in 2002 was
403,795 tonnes, while sales were higher at 430,856 tonnes allowing
stocks to be considerably reduced. Net sples value in 2002 was Rs
14.1 bn, 12 % up on 2001. PTA is made from the oil-derived
petrochemical Paraxylene, which has to be imported. Most of the PTA
is sold in Pakistan, where consumption is rising following
expansions by the major polyester fibre makers. The company recorded
an operating loss of Rs 194 million, a considerable improvement on
the loss of Rs. 1,788 million in the previous year. Financial
charges were much lower, due to lower interest rates, and a rights
issue for US $ 100 million of equity, which was used to pay down
debt. As a result the improvement in loss after tax was even more
marked at Rs. 2,538 million for 2002 against Rs. 4,598 million for
2001. According to a forecast issued in June 2002 at the time of the
rights issue, the Company expects to become profitable in 2005.
Pakistan PTA announced its results
for the 15t Quarter 2003 on 24th April. The company said that the
Asian PTA market had been buoyant during the quarter on the back of
strengthening upstream markets. The Paraxylene price had increased,
and PTA prices had risen also, so that the margin for PTA over
Paraxylene was 69% higher than in the first quarter of 2002.
Production and sales volumes were also well above 2001, showing
gains of 19% and 24%. The Company thus achieved a quarterly
operating profit of Rs 399 million compared to a loss of Rs 653
million in 15t Quarter 2002. Financial charges were much lower
following the 2002 Rights Issue and lower interest rates on debt, so
that the loss after tax was only Rs 58 million against the loss of
Rs 1,354 million the year before.
Although pleased with the
published results, the Chief Executive expressed caution looking
forward. "The first quarter was rather exceptional." he
said. "PTA producers benefited from strong buying demand as oil
and derivative prices surged in the period before the Iraq conflict
began. Now oil prices have come down again and PTA and Paraxylene
prices have yet to reach a new equilibrium. Inside the company we
focus on achieving higher outputs, greater efficiencies and cost
control to ensure that we stay competitive internationally."