Morning Call about 1HFY13 Result Previews – Arif Habib Limited

Karachi, January 24, 2013 (PPI-OT): APL and POL

APL; expected to earn PKR 34.98/share in 1HFY13

BoD of Attock Petroleum Limited (APL) is scheduled to meet on January 28, 2013 to approve 1HFY13 financial accounts.

According to Arif Habib Limited expects the company to declare profit after tax (PAT) of PKR 1,126million (EPS: PKR 16.29) in 2QFY13, a 13% QoQ drop; taking cumulative 1HFY13 earnings to PKR 2,418million (EPS: PKR 34.98), a 9% YoY jump, when compared with PAT of PKR 2,218million (EPS: PKR 32.08) in the corresponding period last year. This profitability growth is mainly estimated on account of 22% YoY volumetric growth in FO, which is well supported by an average 8% YoY jump in FO prices and strong inventory gains realized in 1QFY13. In addition to this, a 19% improvement in Cash balances is estimated to improve income from bank deposits by 17% YoY, providing further impetus to the bottom line. Arif Habib Limited expects the BoD to announce an interim cash dividend of PKR 20/share.

Financial Highlights
PKR million

2QFY13

1QFY13

QoQ

1HFY13

1HFY12

YoY

Net sales

41,071

36,572

12%

77,644

74,521

4%

Gross profit

1,399

1,787

-22%

3,186

2,493

28%

Other operating income

706

719

-2%

1,424

1,258

13%

Operating expenses

363

353

3%

716

375

91%

Operating profit

1,742

2,153

-19%

3,895

3,376

15%

Income on bank deposits

283

264

7%

547

467

17%

Profit before tax

1,564

1,891

-17%

3,456

3,086

12%

Profit after tax

1,126

1,291

-13%

2,418

2,218

9%

Earnings per share (PKR)

16.29

18.68

34.98

32.08

Sources: Company financials and Arif Habib Research estimates

POL; earnings expected to clock in at PKR 23.79 in 1HFY13

Arif Habib Limited preview 1HFY13 financial results for Pakistan Oilfields Limited (POL) scheduled to be announced on January 28, 2013. Arif Habib Limited foresee a 19% QoQ growth in 2QFY13 with a PAT of PKR 3,062million (EPS: PKR 12.95) taking 1HFY13 profitability to PKR 5,628million (EPS: PKR 23.79), a 9% YoY drop from PKR 6,169million (EPS: PKR 26.08) in the corresponding period last year. This is mainly on account of 13% and 15% expected decline in oil and gas production respectively. Though some cushion is expected from 9% PKR devaluation, which Arif Habib Limited fears, will not be sufficient enough to absorb the production decline. In addition, a 20% fall in other income due to lower dividends from NRL would further drag the bottom line. Arif Habib Limited expects the board to announce an interim cash dividend of PKR 17.5/share along with the result.

PKR million2QFY131QFY13QoQ1HFY131HFY12YoY
Net Sales

6,777

6,646

2%

13,423

14,522

-8%

Operating Costs

1,626

1,644

-1%

3,270

3,004

9%

Financial Charges

99

133

-26%

232

263

-12%

Other Charges

279

267

4%

546

695

-21%

Other Income

853

393

117%

1,246

1,560

-20%

Profit before tax

4,313

3,609

20%

7,922

9,389

-16%

Profit after tax

3,062

2,566

19%

5,628

6,169

-9%

EPS (PKR)

12.95

10.85

23.79

26.08

Sources: Company Accounts and Arif Habib Research estimates

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