Monday August 31, 2009
Despite significant increase in fund cost, we expect bank s NII to grow by 6pc YoY on the back of 38pc YoY increase in interest income , said analyst Abdul Shakur at InvestCap Research. On QoQ basis, the bottomline is expected to decline by 31pc YoY to Rs2.89b (EPS Rs2.69) in 2QCY09. Provisions, which remain the concerning factor for NBP as being the public sector entity, are expected to increase by 12pc YoY with further deterioration in the asset quality. NPLs are expected to increase by 20pc in 1HCY09 (NPLs to loan ratio expected at 14.1pc). Moreover, provision for Dewan group would further suppress bank s bottomline as estimated exposure of Rs5bn of Dewan s group is expected to be provided going forward. Due to lower dividends and equity gains, the non interest income of the bank is expected to remain dry, to decline by 2pc YoY. Admin charges are expected to grow by 27pc YoY resulting in inflating cost to income ratio to 42pc compared to 30pc in 1QCY09. No cash of stock dividend with the result is expected according to the experts.
NIB posts profit; Bank Alfalah down by 39pc
Posted by imdurrani Labels: Banking, business finance, Pak Economy, pakistanSINGAPORE (AFP) - Assets held by the world s 100 biggest Islamic banks grew 66 percent in 2008 from the previous year despite the financial turmoil that clobbered mainstream lenders, a report said. The top 100 Islamic banks held assets totalling 580 billion US dollars last year, up from $350b in 2007, according to an annual report by The Asian Banker, a magazine for financial professionals. In the same period, Asia s 300 biggest banks saw their assets rise by a much slower 13.4 percent, it said. A financial storm sparked by a crisis in the US housing market swept across the world late last year. Its impact spilled over into the general economy and sent several countries into recession. Prominent US investment bank Lehman Brothers collapsed into bankruptcy, while several other major Western banks suffered massive losses. Despite the financial turmoil in late 2008 that crippled so many large Western institutions, Islamic banks have continued to grow in prominence and size, the magazine said in a press statement. Emmanuel Daniel, the magazine s president and chief executive, added: Islamic finance has seen an incredible surge in popularity, based on stronger regulatory regimes and a better international understanding of its dynamics. Monday, August 31, 2009
KARACHI - Pakistan Petroleum Limited (PPL), in its FY09 financial results, posted profit of Rs 27.7b (EPS Rs33.4), up by 41pc versus earnings of Rs19.7b (EPS 23.8) in FY08. The company has also announced 20pc bonus shares and Rs 3 per share final cash dividend with the results taking cumulative cash payout to Rs 13 per share in FY09. According to the FY09 financial statements, total receivables of the company have reached Rs 27.8b compared to last year s of Rs13.2b. Sui Northern Gas (SNGPL) remained the major debtor with Rs13.6b (in FY08 it was Rs5.1b) followed by Sui Southern Gas (SSGC) Rs 8.8b (in FY08 it was Rs 2.7b), Wapda Rs 3.5b against Rs3b in FY08 and Attock Refinery (ARL) Rs 1.8b which was Rs 2.2b in FY08. This is due to prevailing circular debt situation, driven mainly by power sector. As a result, total cash position of the company has greatly suffered. Total cash of the company is standing at Rs 14.6b (Rs17.6 per share) compared to Rs 21.8b (Rs26.3 per share). The company believes that the government would settle this amount soon.Monday, August 31, 2009
According to the results, the total cash payout stood at 39pc versus 2-year historical average payout of 55pc mainly due to persisting circular debt trap in the energy chain. The growth in company s bottom line was mainly supported by 35pc revenue growth. Though oil revenues (crude oil +NGL+ condensate) of PPL dropped by 9pc amid lower realised crude oil prices (approx. $58 per barrel compared to $85 per barrel in FY08), gas revenues rose by significant 43pc on the back of improved wellhead gas prices of Sui and Kandhkot fields (higher by 56pc YoY). Thus, sharp decline in oil prices during FY09 did not affect the overall revenues due to higher share of gas in its hydro-carbon as gas prices are fixed for 6-months (time lag impact). Secondly, 20pc devaluation of Pakistani rupee against dollar which improved rupee based revenues. During FY09, though oil production remained flat, however, gas sales dropped by 3pc (average 955mmcfd) mainly due to decline in production from its famous Sui gas field. Interestingly, the affect of higher field expenditure was mitigated through increase in other income.
THE RUPEE: dollar higher
Posted by imdurrani Labels: forex market, pakistan, Pakistani Rupee, World Currencies, world forexKARACHI: The rupee moved both ways on the currency market on Thursday amid rising demand for the greenback, money analysts said. On the interbank market the rupee fell by 13 paisa against dollar for buying and selling at 82.88 and 82.93, experts said. Open Buying Rs 82.70 Open Selling Rs.82.80 Interbank Closing Rates: Interbank Closing Rates For Dollar On Thursday. Buying Rs.82.88 Selling Rs.82.93 (BRecorder) Visit Finance.KalPoint.Com for latest financial stories...
In the fourth Asian trading yen rose broadly as investors fretted that a rally in risk assets since March may have run ahead of a recovery in the global economy and on worries about the outlook for Chinese shares.
OPEN MARKET RATES: The rupee did not move any side in relation to dollar for buying and selling at 82.70 and 82.80, dealers said. The rupee, however, managed to gain modestly against the euro rising 55 paisa for buying at Rs 117.10 and it also gained 65 paisa for selling at Rs 117.60, they said.
Euro Libor rates mark new lows
Posted by imdurrani Labels: Europe, forex trading, World Currencies, world forex
Despite around 160 billion euros of excess liquidity in the system, loans to eurozone households and businesses fell in July to record their slowest annual growth ever, the European Central Bank said on Thursday. "The key thing is that there is little sign that the ECB's liquidity provisions are encouraging banks to lend to the wider economy," said Ben May, an economist at Capital Economics.
Meanwhile, ECB Governing Council member Mario Draghi was the latest central banker to sound a cautionary note, saying the global financial and economic crisis is easing but the outlook remained uncertain. His comments echo those of other policymakers in recent days, which have supported government bonds and interest rate futures in the eurozone.
"There doesn't appear to be any final demand behind the positive indicators we're seeing, it's more an inventory cycle thing going on at the moment," said Nordea's chief analyst Niels From.
Benchmark three-month euro Libor rates were almost a basis point lower at 0.8025 percent, with the dollar equivalent just over a basis point lower at 0.36036 percent. The premium that dollar Libor trades over a risk-free benchmark, Overnight Index Swap rates - a gauge of stress in the banking sector - fell to 18 basis points, a level seen in August 2007 just as the credit crisis erupted.
Friday, August 28, 2009 KARACHI - Pakistan Petroleum Limited (PPL) top line registered a growth of 34.7 per cent to Rs 61.6 billion on year-on-year basis; primarily owing to a surge in gas wellhead prices by 30pc YoY in FY09. According to the financial report of the PPL, the increased gas wellhead price mitigated the effect of accumulated decline of 5pc YoY in oil and gas production (as per company management). Oil production surged by 2pc YoY benefiting from improved production from Mela (23pc YoY), while gas production marginally slid by 3pc YoY main culprit being Sui (-6pc YoY), Sawan (-10pc YoY) and Makori (-18pc YoY) fields. Furthermore, royalty payment surged by 35.3pc YoY in the resonance of the increase in the top line. On one hand, according to the reports the field expenditure inflated by 23.1pc YoY to Rs 7.5b on account of expensing out of 5 exploratory dried wells. While on the other hand, inflationary impact on other major heads of field expenditure, as per the company management. Other noticeable change from last year was the surge in financial cost by 40.5pc YoY to Rs 93.6m, early pointers towards encompassment of E&P sector towards circular debt. In this regard, according to news reports, PPL receivables from gas distribution companies stand at Rs 16.2b while WAPDA has to pay Rs 5.8b. Tax-to-operating profit also slid by 138bps YoY to 33.9 pc in FY09 benefiting from lower tax liability due to unsuccessful drilling activities during the year. PPL s bottomline witnessed a mammoth growth of 40.6pc YoY to Rs 27.7b (EPS Rs33.37) in FY09. In addition, company also declared cash divided of Rs 3/share which translates into a full-year payout of Rs13/share along with 20pc bonus shares. According to company notice, PPL s board of directors has recommended an increase in authorised ordinary share capital to Rs 15.0b (1,500m ordinary share at Rs10 par value) from Rs 10.0b (1,000m ordinary share at Rs10 par value). The increase is deemed to be a direct outcome of PPL s announcement of 20pc bonus shares which will increase it s paid up capital to Rs 9.9b. Therefore, this rise in authorised capital would provide room for future enhancement of paid-up capital in the form of bonus shares or secondary offerings. However, this change is of natural and would not have any impact on company s valuations. The borated international crude oil prices in 2HFY09 would render into 27pc HoH reduction in Sui and Kandkot (combined contribution 79pc in PPL s gas production) wellhead gas prices, which is expected to suppress company s FY10 earnings. However, increased gas production from Hala and Manzalai fields coupled with resurgence in international oil prices (currently at $70/bbl) will more than offset the aforementioned impact and will provide impetus for future growth. Furthermore, company plans to drill 10 wells in FY10, which would also augment company s oil and gas production. Visit Finance.KalPoint.Com for latest financial stories...
PPL top line registers 34.7pc growth
Posted by imdurrani Labels: business finance, Pak Economy, pakistanKARACHI - Pakistan Petroleum Limited (PPL) top line registered a growth of 34.7 per cent to Rs 61.6 billion on year-on-year basis; primarily owing to a surge in gas wellhead prices by 30pc YoY in FY09. According to the financial report of the PPL, the increased gas wellhead price mitigated the effect of accumulated decline of 5pc YoY in oil and gas production (as per company management). Oil production surged by 2pc YoY benefiting from improved production from Mela (23pc YoY), while gas production marginally slid by 3pc YoY main culprit being Sui (-6pc YoY), Sawan (-10pc YoY) and Makori (-18pc YoY) fields. Furthermore, royalty payment surged by 35.3pc YoY in the resonance of the increase in the top line. On one hand, according to the reports the field expenditure inflated by 23.1pc YoY to Rs 7.5b on account of expensing out of 5 exploratory dried wells. While on the other hand, inflationary impact on other major heads of field expenditure, as per the company management. Other noticeable change from last year was the surge in financial cost by 40.5pc YoY to Rs 93.6m, early pointers towards encompassment of E&P sector towards circular debt. In this regard, according to news reports, PPL receivables from gas distribution companies stand at Rs 16.2b while WAPDA has to pay Rs 5.8b. Tax-to-operating profit also slid by 138bps YoY to 33.9 pc in FY09 benefiting from lower tax liability due to unsuccessful drilling activities during the year. PPL s bottomline witnessed a mammoth growth of 40.6pc YoY to Rs 27.7b (EPS Rs33.37) in FY09. In addition, company also declared cash divided of Rs 3/share which translates into a full-year payout of Rs13/share along with 20pc bonus shares. According to company notice, PPL s board of directors has recommended an increase in authorised ordinary share capital to Rs 15.0b (1,500m ordinary share at Rs10 par value) from Rs 10.0b (1,000m ordinary share at Rs10 par value). The increase is deemed to be a direct outcome of PPL s announcement of 20pc bonus shares which will increase it s paid up capital to Rs 9.9b. Therefore, this rise in authorised capital would provide room for future enhancement of paid-up capital in the form of bonus shares or secondary offerings. However, this change is of natural and would not have any impact on company s valuations. The borated international crude oil prices in 2HFY09 would render into 27pc HoH reduction in Sui and Kandkot (combined contribution 79pc in PPL s gas production) wellhead gas prices, which is expected to suppress company s FY10 earnings. However, increased gas production from Hala and Manzalai fields coupled with resurgence in international oil prices (currently at $70/bbl) will more than offset the aforementioned impact and will provide impetus for future growth. Furthermore, company plans to drill 10 wells in FY10, which would also augment company s oil and gas production. Visit Finance.KalPOint.Com for latest financial stories...Friday, August 28, 2009
Friday, August 28, 2009 KARACHI - The medium-term economic outlook for Pakistan is fragile and the country faces significant risks, the International Monetary Fund (IMF) said in a review. Pakistan agreed in November to an IMF emergency loan package of $7.6 billion to avert a balance of payments crisis and shore up reserves. Last month, the fund increased the loan to $11.3 billion, and also released a third tranche of $1.2 billion. A slower global recovery, higher commodity prices, and political instability, as well as existing constraints on energy and infrastructure pose significant risks to the outlook, the IMF said in its latest review, posted on its website. The IMF said the main macroeconomic indicators showed an improvement but the economy was still vulnerable to shocks. Inflation had declined from a record high in August last year but the pace of the decline, especially in the latter part of the 2008/09 fiscal year, which ended on June 30, had been slower than expected, the IMF said. Imports had contracted sharply and overseas workers remittances had continued to grow which had helped the current account deficit improve. However, the financial account remained weak as net foreign flows declined by nearly $3 billion in the 2008/09 fiscal year compared with the previous year, it said. GDP growth in the 2009/10 fiscal year is projected at 3 percent from an earlier 4 percent, the IMF said. The government has set a target of 3.3 percent. The IMF said Pakistan s performance to the end of June, according to preliminary data, suggested that targets set for the State Bank had been met, but the fiscal deficit had exceeded a ceiling by 0.9 percent of GDP. The IMF said it opposed a cut in interest rates until inflation fell significantly. Staff argued that the policy interest rate should remain on hold until core inflation shows a further significant decline, it said. The central bank announced this month a cut of 100 basis points in its policy rate to 13 percent. State Bank of Pakistan Governor Salim Raza said the cut recognised positive macroeconomic developments and would provide impetus for growth, while the central bank was not underestimating the problems the economy faced. The data under review by the IMF was for the period up to June. Inflation decreased to 11.17 percent in July from a year earlier, and from 13.1 percent in June. Visit Finance.KalPoint.Com for latest financial stories...
Posts
