STOCK WATCH

 

 

By SHABBIR H. KAZMI
Updated Aug 02, 2003

 

The news of the week is that KSE-100 index crossed 4,000 level. Attractive results and keen interest of retail as well institutional investors was obvious and well support by the prevailing liquidity. However, major activity was observed in volume leaders. While Engro's half yearly results were above expectation, the performance of Fauji Fertilizer was below the forecast. PSO also witnessed major activity, particularly after its announcement to establish a refinery. However, fate of refinery depends a lot on PSO's privatisation and the interest of new strategic buyer.

 

 

 

ENGRO CHEMICAL PAKISTAN

The company has posted Rs 534 million profit after tax for the first half of 2003 and also announced 25% interim dividend. For the corresponding period of last year the company had posted Rs 414 million profit and announced 20% interim dividend. Sale of urea during the first half of 2003 was 355,000 tonnes, a growth of over 8% for the corresponding period of last year. This also resulted in improvement in market share of the company, going up from 17% to 20%. The most significant accomplishment was the attainment of 482,000 tonnes urea production, an all time record, during the six months period. The capacity utilization of Dharki plant came to 113% of designed capacity. Sales of DAP and NPK fertilizers during the period were 33,000 tonnes and 36,000 tonnes respectively. The NPK plant operated at 72% capacity. Engro Vopak posted Rs 138 million profit, though marginally lower as compared to previous year. The parent company got a dividend income of Rs 67.5 million from this subsidiary. Engro Asahi Polymer and Chemical posted profit of Rs 8 million compared to Rs 275 million for the same period last year that included one time deferred tax credit of Rs 141 million. The decline in profitability was mainly due to the reduction in margin caused by the volatility in the petrochemical feedstock prices.

SUI SOUTHERN GAS COMPANY

The company has achieved an overall flow rate of 1,200 million cubic feet per day (MMCFD). A maximum flow of 962 MMCFD was achieved in SSGC system, plus an additional 240 MMCFD was transmitted to SNGPL by the company. The company has doubled its gas transmission system capacity from 600 MMCFD in July 2000 to the current level of 1,200 MMCFD. This increase has been achieved through Gas Infrastructure Rehabilitation and Expansion Project (GIREP) at a cost of Rs 3.1 billion. The full flow and capacity utilization has been achieved with the integration of the Swan gas field of OMV. Recently the Eni-Lasmo's Bhit gas field project has been completed, this supplies 250 MMCFD gas. Earlier, Zamzama Phase-I project was completed. The company has already announced GIREP-II project spread over next five years. After the completion of this project, SSGC's system capacity will increase by another 500 MMCFD and add over 350,000 new customers. Under the GIREP-II the company intend to supply gas to several upcoming power plants, including 80MW desalination and power generation plant being set up by Defense Housing Authority at Karachi.

 

 

NISHAT MILLS

The company has posted Rs 350 million profit after tax for the nine months period ending June 30, 2003 as compared to a profit of Rs 102 million for the corresponding period of last year. For the third quarter of ongoing financial year there was a decline of 22% in profit as compared to profit for the third quarter of last year. This decline can attributed to rise in cotton prices. There was a 33% decline in financial charges due to efforts of the company to restructure its balance sheet and downward trend in interest rates. The company is expected to earn around Rs 500 million profit after tax for the full year and post EPS of around two rupees. It is yet to be seen whether the company would announce or prefer to skip payment of dividend. Last year the company did not announce dividend but issues 10% Bonus Shares.

TRI-PACK FILMS

The company produces BOPP films used for packing in the consumer goods industry. The five end-users savory snacks, confectionery baked goods, dried foods and adhesive tape accounted for two thirds of demand for BOPP film in the world market in 2002. The total size of the domestic demand is around 1,400 tonnes. While 70% of the domestic demand is met by the local producers the remaining 30% has to be met through import. Keeping in view the growing demand, low interest rates and ability to maintain earnings growth momentum, the company enjoys potential to increase its bottom line. It is reflected from the financial results posted for the first half of ongoing financial year. Sales increased from Rs 597 million to Rs 743 million. Operating profit improved from Rs 146 million to Rs 159 million. As a result of achieving economies of scale, operating profit as percentage of sales improved from 44% to 52%. Keeping in view the growing demand of FMCGS, the company is expected to register sustained growth.

MOVEMENT AT A GLANCE

SCRIP

HIGH
(Rs.)

LOW
(Rs.)

CLOSING 
PRICE

TURNOVER
 (SHARE)

Hub Power

40.95

39.65

40.95

326,546,500

P.T.C.L.A

33.55

31.85

33.55

292,553,000

P.S.O. XD

301.60

260.75

301.60

137,776,900

FFC JORDAN

17.00

16.20

17.00

74,381,500

Engro Chem

92.90

90.00

92.90

50,601,400

National Bank

34.90

33.40

34.90

32,148,000

M.C.B.

43.15

42.05

43.15

26,719,000

Fauji Fert

93.50

89.90

93.50

17,257,900

Askari Bank

39.95

37.80

39.95

3,867,500

Shell Pak

459.95

430.55

459.95

2,766,700