ICI Pakistan Limited’s board meeting – results for the year end December 31, 2011

Karachi: We wish to inform you that the Board of Directors of ICI Pakistan Limited (ICI) at its meeting held on March 15, 2012 has approved the audited Accounts of the Company for the year ended December 31, 2011 showing the following results:

Dividend

A final cash dividend in respect of the financial year ended December 31, 2011 at the rate of 55% i.e. Rs 5.50 per share of Rs 10/- each on the issued and paid up share capital of Rs. 1,388,023,000/= subject to the approval of the shareholders at the forthcoming Annual General Meeting, to be payable to the members whose names appear in the Register of Members on April 20, 2012.

Financial Results

 

Amount in Rs ’000
2011 2010
Turnover 44,802,489 39,532,506
Sales tax, excise duty commission and discounts (4,687,581) (4,402,526)
———- ———-
Net sales, commission and toll income 40,114,908 35,129,980
Cost of Sales (33,728,384) (28,443,690)
———- ———-
Gross profit 6,386,524 6,686,290
Selling and distribution expenses (1,851,279) (1,674,719)
Administration and general expenses (1,692,077) (1,299,005)
———- ———-
Operating Result 2,843,168 3,712,566
Financial charges (131,244) (163,880)
Other operating charges (253,267) (303,426)
———- ———-
(390,511) (467,306)
Other operating income 459,494 486,256
———- ———-
Profit before taxation 2,912,151 3,731,516
Taxation (976,438) (1,302,690)
———- ———-
Profit after taxation 1,935,713 2,428,826
———- ———-
(Rupees) (Rupees)
Earnings per share – Basic and diluted 13.95 17.50

 

Major Highlights

Net sales income (NSI) was up 14 percent over last year. The operating result was 23 percent lower than last year due almost entirely to a further deterioration in the availability of gas by SNGPL to the Soda ash and Polyester Staple Fibre plants. During the year, the number of days gas was not available to our Soda Ash and Polyester Staple Fibre plants were 174 days and 186 days respectively, compared to 143 days and 108 days in 2010.

The consequent financial impact on the operating result of using alternative expensive fuel was over Rs. 825 million in 2011. The operating result also includes an impairment charge of Rs. 210 million, relating to the investment in ICI Pakistan Powergen Limited, a 100 percent owned captive power company in accordance with International Financial Reporting Standards. This impairment has occurred due to the deterioration in the future prospects of the economic benefits of the investment on account of severe gas undersupply to ICI Pakistan Powergen Limited. In addition, your Company also incurred one off demerger expenses amounting to Rs. 170 million.

The Paints, Chemicals and Life Sciences businesses recorded strong growth in margins and operating result.

The coal fired boiler project already approved by the Board at a cost of over Rs. 2 billion, is expected to –be commissioned in Q2 2013, It will significantly improve the energy economics of the Soda Ash Business.

Earnings per share at Rs .13.95 was lower by 20 percent compared with 2010.

The Annual General Meeting of the Company will be held at 10.00 a.m. on April 27, 2012 at ICI House, 5 West Wharf, Karachi.

The Share Transfer Books of the Company will be closed from April 20, 2012 to April 27, 2012 (both days inclusive). Transfers received at M/s FAMCO Associates (Pvt) Limited State Life Building No. 1-A, First Floor, I.I. Chandigarh Road; Karachi 74000 at the close of business on April 19, 2012 will be treated in time for the purpose of the above entitlement to the transferees.

For more information, contact:
ICI Pakistan Limited
ICI House, 5 West Wharf,
T: + 92 21 3231 0620
T: + 92 21 3231 0622
F: + 92 21 3231 0617
Web: www.icipakistan.com

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