STOCK WATCH

 

 

By SHABBIR H. KAZMI
Updated July 31, 2004

 

The season of financial results has started with the poring in of results from PSO, FFBQ and Engro. However, it was surprising that after the announcement of results by PSO its share price went down. The reason for this was said to be non-declaration of Bonus Shares. It was nice to see that FFBQ has started showing improvement in profit after commencement of DAP production. As against this, Engro's half yearly profit declined mainly due to hike in cost of production. It may be true that the GoP wishes to bring down fertilizer prices but increase in 

 

 

 

 

feedstock price without corresponding increase in price, will continue to erode profit of fertilizer manufacturers. Another point of concern is that demand has surpassed supply, which will lead to import of urea and add to trade deficit. The GoP has constituted a committee to suggest recommendation for changing the existing fertilizer policy but no move has been made as yet.

FIRST EQUITY MODARABA
The First Equity Modaraba (FEM), one of the leading players in equities market, based on the results for the year ended June 30, 2004, has declared Rs 4.25/certificate (42.5%) dividend. In addition to this it has announced to enhance its capital by issuing 100% Right Shares at a premium of Rs 5/share. The FEM is the only modaraba in the entire Modaraba sector that is going to enhance its capital through issue of Right Shares at a premium. The FEM is a multipurpose and perpetual modaraba but became an active player in equities market. It bought membership card of all the three stock exchanges operating in country with office facilities for a total sum of Rs 32.5 million in year 2000. According to the financial years, the FEM has already earned Rs 200 million from capital market operations. The Right issue indicates that the FEM has chalked out an ambitious plan to further broaden its activities.

OGDC

The company has started prodiction from Chanda field. It is estimated to produce 10 million cubic feet gas and 2000 barrels oil per day in the first phase. The field is located in Kohat district of NWFP, the first ever discovery in the province. Gas produced from the field will be injected in SNGPL network at Daudkhel and oil will be transported to Attock Oil Refinery in Rawalpindi. Production is expected to increase to 13-15 MMSCF of gas and 3000 barrel per day subsequently. After the completion of second phase 40 tonnes/day LPG will also be produced from the field. Start of commercial production from Chanda field is a milestone as it will generate revenue in the form of royalty and GST for the NWFP besides saving US$ 30 million per year.
PAKISTAN STATE OIL COMPANY
At the time of approval of financial accounts for the year ended June 30, 2004, the Board of Directors of the company approved distribution of 75% final dividend. This raised the total payout for the year to 175% and set a new record. The company had distributed 165% dividend last year. During the year under review white oil products registered a growth of 5.7% over last year. Higher sales were at the back of increase in consumption of Mogas and HSD to the tune of 14.7% and 4.8% respectively. Kerosene oil sales declined by 12.7% due to availability of cheaper fuels such as natural gas and LPG. Total revenue of the company stood at Rs 195 billion despite the major decline in furnace oil volume. The company earned all time high profit after tax of Rs 4.2 billion, up by 4.5% from the preceding year. However, the scrip experience price erosion on the day of announcement of results.

ENGRO CHEMICAL PAKISTAN

The company has posted Rs 482.7 million profit after tax for the first half of 2004 as compared to Rs 533.9 million profit for the corresponding period of last year. The Board of Directors also approved distribution of 25% interim dividend. For the six-month period sales grew from Rs 3,424 million to Rs 3,993 million. As against this cost of goods sold went up from Rs 2,034 million to Rs 2,927 million. This resulted in decline of gross profit from Rs 1,390 million to Rs 1,066 million. However, increase in other income and decrease in financial charges helped in improving the bottom line. Other income went up from Rs 115 million to Rs 199 million. Financial and other charges came down from Rs 304 million to Rs 185 million.
FAUJI FERTILIZER BIN QASIM

The company has posted Rs 590 million profit before tax for the first half of 2004 as against Rs 69 million loss for the corresponding period of last year. The reversal of this fortune can be attributed to increase in sales, going up from Rs 1,572 million to Rs 3,672 million. As against this cost of goods sold went up from Rs 1,302 million to Rs 2,640 million. Gross profit hiked from Rs 269,7 million to Rs 1,032.2 million. Selling and distribution expenses grew from Rs 210 million to Rs 365 million. Profit after tax went up from Rs 265 million to Rs 378 million.

 

 

Company High  Low Closing Week's Turnover

National Bank

73.55

70.25

71.75

107,117,900

Fauji Fert Bin

21.20

19.05

21.20

93,984,500

B.O.Punjab

66.35

65.20

65.25

77,854,500

Oil&Gas Dev.

66.05

64.90

64.90

63,184,600

Askari Bank

74.50

67.50

74.50

47,429,300

P.S.O.

268.75

256.00

256.00

31,321,400

Nishat Mills

52.25

49.10

49.10

25,957,800

Hub Power

31.40

30.70

30.70

14,863,500

Fauji Fert.

132.75

123.50

132.75

12,279,300

Engro Chem.

95.05

92.50

94.90

10,534,300