According to An AKD report, "PTCL results have
definitely changed the overall sentiments of the market. However, the
stock on stand-alone cannot continue to drive the market for long.
Going forward we foresee oil stocks to take the mental, as
international oil prices have recommenced their upward drive, breaking
the US$ 50 per barrel mark. We maintain out earlier stance that
exploration and production companies will be the primary beneficiaries
followed by oil marketing companies. On the flip side, oil consuming
sectors like airlines, PSF and cement will have negative implications
on their bottom line, as they will have problems in passing on the
additional cost to final consumers."
PAKISTAN TELECOMMUNICATION COMPANY
While PTCL posted an outstanding profit after tax
growth, the more surprising was the announcement of five rupees per
share dividend. The telecom giant registered an Rs 5.72 EPS for the
year ended June 30, 2004 as compared to Rs 5.43 for the previous year.
However, it is worth mentioning that the additional boost to profit
after tax came due to lower provisioning against tax, which added
about 986 million to its bottom line. PTCL's top line grew by over ten
percent to Rs 74 billion and operating margins improved by 434bps to
SUI SOUTHERN GAS COMPANY
The decision of Oil & Gas Regulatory Authority
(ORGA), not to accommodate SSGC's ongoing expansion has dented this
year's bottom line severely. The primary rationale given by the
regulator was that most of the projects are ongoing and will only be
accommodated once they are complete. Hence, the additional revenue
generated becomes part of gas development surcharge, an expense for
the company and revenue for the government. The company managed to
post 997 million rupees profit after tax for the year ended June 30,
2004. However, it was also much below market expectations. Analysts'
least forecast was for 1.44 billion rupees. The primary hit can be
attributed to gas development surcharge. The company paid 2.55 billion
rupees to the government. Despite lower earnings, the company
announced 15% final dividend.
COLGATE PALMOLIVE PAKISTAN
The company has posted about 287 million rupee
profit after tax for the year ended June 30, 2004 as compared to 175
million rupee for last year. EPS improved from Rs 14.31 to Rs 23.46.
The Board of Directors have also approved distribution of 10 rupee per
share final dividend. Shareholders were paid 7 rupees per share
dividend last year. The improvement in bottom line can be attributed
to growth in sales, going up from 2,734 million rupees to 3,348
million rupees. Cost of goods sold also went up from Rs 1,977 million
to Rs 2,386 million.
GENERAL TYRE & RUBBER COMPANY
The company has posted Rs 236 million profit after
tax for the year ended June 30, 2004 as compared to Rs 197 million
profit for last year. However, the Board of Directors decided not to
distribute any dividend among the shareholders. The company had paid
20% dividend last year. At the best company's performance could be
termed 'as usual'. However, its operating expenses went up from Rs185
million to Rs 228 million. Sales grew from Rs 2,239 million to Rs
2,803 million. As against sales cost of goods sold also went up from
Rs 1,709 million to Rs 2,176 million.
PRIME COMMERCIAL BANK
The Board of Directors of the bank have decided
issue of about 91 million Right Shares to its existing shareholders in
the proportion of 82 ordinary shares for every 100 shares at a premium
of five rupees. The purpose of this issue is: 1) to meet the enhanced
paid-up capital requirement, 2) to fund bank's expansion plan and 3)
upgrade its technology base.
CRESCENT COMMERCIAL BANK
The State Bank of Pakistan has approved the Scheme
of Arrangement for the amalgamation of Trust Commercial Bank with and
into Crescent Commercial Bank (CresBank). The Board of Directors of
CreBank has also approved 21st October 2004 as effective date of
FIRST ALLIED BANK MODARABA
The Modaraba has posted Rs 25.4 million profit
after tax for the year ended June 30, 2004 as compared to Rs 20.5
million for last year. However, a closer look at the details indicates
that there was decline in income and higher profit was the result of
reversal of provision against doubtful debts. The reversal amounted to
over eight million rupees. However, a positive development was
reduction in financial charges from slightly more than 12 million
rupees to less than two thousand rupees.