PRO 16-01-2013_Layout 1 1/15/2013 11:13 PM Page 1
Amidst crisis, Pakistan gas and oil outputs rise in 2012
Banks to report maturity gaps of contractual assets, liabilities Karachi STAFF REPORT
Gas output up by 4pc, oil by 10pc in 2012 Karachi STAFF REPORT
W
ITH security concerns and circular debt restricting Pakistan Oil & Gas Exploration companies to tap in new reservoir, the sector continues to rely on maximizing the yield of existing reservoirs, said the analysts at Topline Research. As a result, they said, the increase in oil and gas production in 2012 failed to fill the mounting demand thereby affecting the overall industrial growth besides affecting the transport and other segments. During the outgoing calendar year 2012, country’s gas production that contributes approx. 50% in Pakistan energy mix grew by 4% to an average of 4.2bcfd from 2011 average gas production of 4.1bcfd. “Five years back in 2007 average production was 3.9bcfd. This increase is well below the organic growth in its consumption thereby creating huge deficit affecting the overall economic growth,” said Topline analyst Nauman Khan. Major news of the year was commissioning of KPD-TAY that added an aver-
PSM promotes deputy chief engineers as general managers
Karachi STAFF REPORT
Chief Executive Officer of Pakistan Steel Mills (PSM) Major General (Retd) Muhammad Javed said yesterday that hard work done with national spirit, honesty and sincerity never goes in waste. There is a need to work with such a zeal for the progress of Pakistan Steel. He stated this on the occasion of distribution of promotion letters at the Operations Building to 8 Deputy Chief Engineers elevated to the rank of General Managers. He said promotion meant that you have to work with even greater confidence and responsibility, so that your experience and abilities can be harnessed for the better running of Pakistan Steel. Due to the retirement of many senior officers of Pakistan Steel, 9 vacancies had been created for the post of general manager in 2012. While the post of general manager (security) was advertised in the press and initial interviews have already taken place in this behalf, for the other 8 posts senior deputy chief Engineers were promoted on the recommendation of the Departmental Promotion Committee so that these capable officers can perform their duties with full dedication. The officers who have been promoted have more than 30 years of experience in their field and their names are: Engineers, Athar Husain Zaidi, Naseer Ahmad, Imtiaz Hassan Shamsi, Sohail Sana Qazi, Captain (Retd) Parvez Akhtar, Syed Ali Mujtaba, Qazi Anwar Hussain and Iqbal Ahmad Qureshi.
Wednesday, 16 January, 2013
age 104mmcfd in the system, he said. However, other gas fields like Qadirpur, Zamazama, Mari had led their due hands. However, natural decline in major fields namely Sui and Sawan coupled with reduce production from Tal block diluted its impact. On the oil front, average production increase by a decent 10% to 71.6k barrels a day in 2012 from 64.9k in 2011. It was
70.4k in 2007. Improvement in 2012 was largely attributed to Nashpa field. During 2012 Nashpa field of Naspha block located in KPK region of the Pakistan, was the star performer for the sector. “Thanks to favourable results of its appraisal wells, fields production increased by a mammoth 109% to above 11k bpd as against 5.5k bpd last year,”
said Khan. Other notable increase also came from Adhi fields as its production rose by a decent 16%. The much talked about, Tal block production increased by a mere 3%, despite commissioning of Makori East towards the end of the year. Though, we continue to have conviction in the block’s potential but commissioning of Makori CPF (Central Processing Facility) holds its key. Going forward, near-term trigger was expected to come from materialisation production from Sinjhoro fields, Mamikhel-2 and Maramzai-2, while improved production from Naspha, Adhi and Mela fields wer also events to keep a track. Amongst the listed companies, OGDC’s average gas production increased by a decent 14% in 2012 largely attributed to KPD-TAY effect, while its oil production grew by 7%. PPL performed well in the oil depicting a growth of 12% however, its gas production declined by 4% due to subdued performance of Sui and Sawan. 2012 was a disappointing year for POL whose oil production declined by 18% mainly on account capped production from Tal and decline in production from its own operating fields.
SMEs crash with crashing economy Karachi PPI
The ongoing crisis of energy particularly load shedding of electricity and gas and frequent closures of gas stations in Pakistan has hit hard the small and medium sized enterprises, dealing a heavy to national economy. Union of Small and Medium Enterprises (UNISAME) leaders told Chief Executive Officer (CEO) of the Small and Medium Enterprises Development Authority (SMEDA) Nawaz Ahmad Sukhera Provincial chief Muslim Raza, Deputy General Manager Mukesh Kumar and Manager Feroz Ahmad during a meeting. UNISAME President Zulfikar Thaver told the meeting that besides the law and order situation and energy crisis the SMEs were unable to
function and were running in losses due to high cost of production caused by the increase in prices of raw material and packing material because of the dollar exchange rate and the increase in the prices of fuel which had made logistics costly. He said that the SMEs need finance at affordable mark up, land at concession, uninterrupted supply of raw material and energy. He added that there was a technological gap and the SMEs need to know about the latest technology in their respective fields. The SMEs need the facilities of leasing to buy commercial property, plant, machinery and equipment, raw material, income generating vehicles to enable them repay in the instalments under pay as you earn scheme and urged the CEO to make strong recommenda-
tion to the government for promotion of soft leasing terms for SMEs. The leasing companies were charging high mark up because they themselves were borrowing from the banks and the SME Leasing a subsidiary of SME Bank was having insufficient funds to cater to the SMEs. The participants stressed the need for credit insurance to make the banks comfortable in financing the SMEs and issuance of SME credit card for the SMEs to enable them purchase raw material and repay on realisation of sale proceeds. Sukhera said he was planning to work for export promotion of Pakistani goods on the one hand and the other for making SME units competitive in domestic market.
The central bank yesterday asked the banks and Development Finance Institutions (DFIs) to report the maturity gaps of all their assets and liabilities based on ‘contractual maturities’ in addition to the reporting based on ‘expected maturities’ as notified in its circular issued on February 22 last year. The regulator said, while reporting gaps based on ‘expected maturities’ the banks and DFIs should disclose the methodology used to determine behavioural maturity of ‘non-contractual maturity’ assets and liabilities. The move was aimed at further enhancing disclosures on the liquidity risk, said the bank. In the BSD Circular Letter No. 03 issued in February 2011, the State Bank had advised the banks and DFIs to report maturity gaps between their ‘non-contractual maturity’ assets and liabilities based on ‘expected maturities’. The SBP, in a circular issued yesterday, said the banks should report both of the above disclosures under Note 45.4.1 of the revised form of Annual Financial Statements issued vide BSD Circular No. 04 dated February 17, 2006. “The banks shall continue to report their maturity gaps only on ‘expected maturity’ basis in quarterly Data File Structure under Reporting Chart of Accounts as envisaged in the above mentioned Circular letter,” said the regulator. These instructions shall become effective from December 31, 2012, it added.
LHC orders removal of PTA chairman LahOrE NNI
The Lahore High Court (LHC) yesterday issued directives to remove the Pakistan Telecommunication Authority (PTA) Chairman Farooq Awan from his post after the court declared his appointment to have been made on a political basis. Justice Syed Mansoor Ali Shah heard the case at LHC on Tuesday. Barrister Sardar Muhammad Ali had filed a petition against the PTA chairman’s appointment. During the hearing, the court declared that Awan’s appointment as the PTA chairman had been made on a political basis – which was an ‘unconstitutional process’ – therefore, Awan must be removed from his post.
Meezan Bank inks deal with UAE’s Mashreq Bank on ‘Wakala’ Karachi STAFF REPORT
Meezan Bank, the first and largest Islamic commercial bank, has entered into an agreement with Mashreq Bank PSC, UAE, under which Meezan Bank would earn Shariah-compliant profit on its US Dollar clearing account balance held with Mashreq Bank. The innovative arrangement utilises a Shariah-compliant principle of Wakala. Aimed at facilitating the growing market of Islamic financial institutions, this innovative product was initially developed to cater to Meezan Bank’s requirement of earning Shariah-compliant profits on its US Dollar clearing account. This product was developed and launched by Mashreq Bank in a record time and was later commercialised and made available to clients globally across Mashreq’s network. The product was approved by the Shariah divisions of both Banks.
Speaking at the occasion Meezan Bank Chief Operating Officer Mr. Ariful Islam commented: “The US Dollar Islamic arrangement with Mashreq Bank will prove to be a significant positive development in our attempts to provide the best cleari n g arrangements to o u r clients’ worldwide while ensuring that our ultimate objective of Shariahcompliance is achieved at the same time.” Mashreq Bank Head of Financial Institutions Division Mr. Faisal Lalani said: ‘I sincerely thank Mr. Ariful Islam
for enabling the development and finalisation of this product. Mashreq Bank has benefited greatly by incorporating this product into our list of product offerings, which we will now propose to our other clients as well”. “Mashreq Bank has always been one of our valued correspondent banks and it gives us immense pleasure to be the first bank to sign up for this innovative product which is a one of a kind sweep arrangement”, said Meezan Bank SEVP & Group Head of Treasury & Financial Institutions Abdullah Ahmed.
“We are thankful to Meezan Bank for having faith in us and giving us an opportunity to service them. Mashreq Bank is one of the most innovative and leading provider of Islamic Treasury and Capital Markets solutions to Islamic Institutions. We look forward to do more for Islamic banks in Pakistan.” said Director Islamic Treasury and Capital Markets Fawad Taufique Mashreq Bank. Meezan Bank provides a complete range of Islamic banking products and services through a retail banking network of over 300 branches in 90 cities, supported by an extensive range of 24/7 banking services. The Bank had been consistently recognized as the best Islamic Bank in Pakistan by various local and international institutions over the past several years. Mashreq Bank is one of UAE’s leading and highest performing banks in the region. The Bank operates with 12 overseas offices in nine countries, including Europe, US, Asia and Africa.
PRO 16-01-2013_Layout 1 1/15/2013 11:13 PM Page 2
Bank Alfalah to post Rs1.16 earning per share for 4QCY12 Karachi STAFF REPORT
As the result season sets in, the banks are going to announce their full-year earnings for the calendar year 12, said a report issued by the Arif Habib Research Tuesday. “Among our banking sector sample, we are presenting our expectations for Bank Alfalah Limited (BAFL) where the bank is expected to post net profit of PKR 1,568mn (EPS: Rs 1.16) for 4QCY12, exhibiting a major improvement of 46% QoQ (3QCY12 EPS: PKR 0.80),” it said. This will take the overall bottomline of BAFL to PKR 4,969mn (EPS: PKR 3.68) in CY12, a significant 42% jump YoY, as compared to PKR 3,503mn (EPS: PKR 2.60) recorded last year. Lower provisioning and marked growth in non-interest income were expected to be the main reasons behind the bank’s impressive results in CY12. Expected improvement in net interest income (+6%) and non interest income (+30%) were among the positives during the quarter. However, these were expected to have partially offset by higher operating expenses (+13%). The bank’s net revenue for CY12 was expected to have surged 6% YoY to PKR 47,089mn (CY11: PKR 44,298mn). Consequently, the net interest income was expected to have improved marginally by 2% YoY to PKR 19,005mn against PKR 18,611mn in CY11. This increase can be attributed to 10% YoY growth in average earning assets in CY12. In 4Q alone, the net interest income was forecast to be ~PKR 12,313mn, up 6% QoQ from PKR 11,599mn in 3QCY12. With this rise, bank’s net interest margin was expected to remain at 4.6%. However, rising interest expense (9% YoY) subdues spreads of the bank due to 15% YoY hike in average paying liabilities that was more than the growth in average earning assets. Non-interest revenues of PKR 6,974mn was expected to have grown 30% YoY from the prior year.
Bearish trend prevails in LSC,ISE g
LSE sheds 159.71 points g ISE-10 sheds 23 points
LahOrE
B
APP
EARISH trend prevailed in Lahore Stock Exchange yesterday as it shed 159.71 points, following the LSE-25 index opened with 3929.81 and closed at 3770.10 points. The market’s overall situation, however, corresponded to an upward trend as it remained at 5.758 million shares to close against previous turnover of 1.935 million shares, showing an upward move of 3.822 shares. While, out of the total 96 active scrips 0 moved up, 54 shed values and 42 remained equal. Attock Refinery Limited, Engro Corporation Limited and Adamjee Insurance Company lost their per share value by Rs 5.65, Rs 3.70 and Rs 3.26 respectively.
The Volume Leader of the day included Fauji Cement Company Limited with 2.492 million share, Byco Petroleum Pakistan with 757,000 shares and The Bank of Punjab Limited with 743,000 shares. Meanwhile, Islamabad Stock Exchange (ISE-10) yesterday witnessed bearish trend as the index was down by 23.87 points to close at 3043.1 as compared to the previous day’s trading. Stock Analyst of Aba Ali Habib Securities Pvt Ltd, Zaheer Ahmed told APP that the pressure was seen in the local stock market due to prevailing political situation after the decision of Supreme Court and staging of long march by Minhaj ul Quran chief Tahir ul Qadri. “Investors have off-loaded major positions in the market which they held a day earlier”, he said adding that even some of them preferred to remain sideline rather than taking new positions. Ahmed said that the existing situation in the market was temporary and the recovery would be soon due to the expected positive earnings to be announced by corporate sector in the near future. Besides, the banking sector remained the most traded in the local bourse which was the positive indication for the future of capital market, Stock Analyst informed. AKBL, PTC and BOP remained volume leaders with volume of 10,000, 4,000 and 2,000 shares respectively.
Oil prices slip on concerns over US debt ceiling LONDON: Global oil prices fell yesterday after President Barack Obama warned Republicans over the debt ceiling, with traders bracing for more US partisan bickering in the coming weeks. In midday London deals, Brent North Sea crude for delivery in February declined nine cents to $111.79 a barrel.New York’s main contract, light sweet crude for February or West Texas Intermediate (WTI), reversed 16 cents to $93.98 a barrel. “Crude oil prices have been in a consolidation mode on Tuesday morning, as the lack of the
agreement over the US debt ceiling and further build in the US oil crude stocks weighed further on market sentiment,” said Sucden analyst Myrto Sokou. “Brent oil currently trades around $112 per barrel, while WTI crude oil consolidates around $94 per barrel.” President Barack Obama on Monday warned Republicans against using the debt ceiling as a “bargaining chip,” saying a failure to raise it would sow financial chaos and send markets into a tailspin.APP
Business 02 Major Gainers COMPANY
OPEN
HIGH
LOW
CLOSE
CHANGE
TURNOVER
Gillette Pak
118.49
124.41
118.49
124.41
5.92
1,500
Mithchells Fruit
377.00
386.00
370.25
375.13
-1.87
600
AL-Noor Suger
36.90
38.74
38.74
38.74
1.84
500
Quetta Textile
30.87
32.00
32.00
32.00
1.13
500
Kot Addu Power
50.27
52.78
48.02
51.39
1.12
4,930,500
4550.00 3798.46 505.99 610.00 282.50
4550.00 3798.46 480.00 585.00 276.00
4550.00 3798.46 483.20 593.79 276.00
-225.00 -199.91 -17.28 -15.24 -14.00
20 20 19,100 60,300 500
7.15 13.74 6.20 14.99 15.25
6.54 12.17 5.31 14.11 14.32
6.66 12.53 5.91 14.13 14.32
-0.38 -0.61 -0.07 -0.98 -1.00
43,005,500 20,127,000 18,454,500 11,019,000 6,567,500
Major Losers Nestle Pakistan Ltd. Rafhan Maize Prod. Attock Petroleum Ltd Millat Tractors Ltd. Exide (PAK)
4775.00 3998.38 500.48 609.03 290.00
Volume Leaders Fauji Cement Byco Petroleum TRG Pakistan Ltd. Jah.Sidd. Co. Maple Leaf Cement
7.04 13.14 5.98 15.11 15.32
Interbank Rates US Dollar UK Pound Japanese Yen Euro
97.4268 156.7208 1.0963 130.3766
Forex Rates BUY US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal Australian Dollar
98.70 130.20 156.80 1.0979 98.69 12.43 26.67 26.12 102.53
SELL 99.40 132.40 159.41 1.1155 100.98 12.75 27.07 26.51 105.72
Mobile phone subscription surpasses 121.6m ISLAMABAD: Mobile phone subscriptions in the country has transcended 121.6 million with cellular tele-density reached 68.8 percent. As per statistics, till October last year, all cellular companies operating in the country added over one million subscribers to take the total base to 121,602,339 subscription. Mobilink led the market with 36,388,770 subscribers after adding 314,782 customers in October 2012. APP
CORPORATE CORNER Nokia Pakistan and Talentidols present Nokia Asha Big Idea Big App Competition KARACHI: Nokia Pakistan collaborated with Talentidols.com, a competition portal & a product of KalSoft FZ LLC. to launch the Big Idea Big App Competition as part of its Nokia Ideas Project campaign. As a result of its partnership with Talentidols, Nokia Pakistan sought to generate original and creative ideas for mobile phone applications in return for some exciting prizes which include Nokia handsets and sizeable cash prizes. PR
Samsung and TEVTA courses attract great response from students
from students. The institution had targeted to register 200 students for these courses, whereas the actual registration figures exceeded 462 students by December 2012. More than 76 students have enrolled in the Mobile phones division. The Televisions division comprised of over 75 students. Students registering for the Refrigerator and Airconditioners course were more than 188. While the Washing Machine & Microwave oven division had attracted 123 students.PR
Pakistan-Korea cultural exchange event LAHORE: On the friendly invitation of The City School, Allama Iqbal Town Branch, a delegation from the Hi Friends organization of South Korea visited the school yesterday. The Korean delegation comprised of 10 teachers and 40 students. The program was a remarkable and marvellous opportunity for the children of the two nations to learn about cultures of each other and to create strong bonding between the two countries. PR
Ajman Free Zone unveils Smart Warehouses KARACHI: In a significant step to boost its growing appeal and commitment towards increased inward investments in the Free Zone and the UAE on the whole, Ajman Free Zone unveils Smart Warehouses, offering investors’ option to rent warehouses units as small as 100 square metres and clients that require larger spaces have an option of securing multiple units. PR KARACHI: Samsung Electronics Co. Ltd., a global market leader, has collaborated with Technical Education & Vocational Training Authority (TEVTA) to offer specialised courses at the new training labs for; Mobile phones, Home appliances, Air conditioner/Refrigerators and Washing Machine/Microwaves in Lahore. These technology courses were drawing an overwhelming response
PIAREA president demands due rise in pension of employees KARACHI: Pakistan International Airlines’ Retired Employees Association (PIAREA) President Tahir Hassan while reminding PIA Chairman Lt.
General (retd) Asif Yasin Malik of his promise demanded the due raise in the pension for the retired employees of the national airlines. He said the pension of the retired employees of the national airline was very low as compared to the pensions of the employees of other government departments, therefore this discrimination should be ended and a due raise in the pensions be made. PR
Commercial attaché of Turkey to improve business ties
SSIPR in Pakistan and hopeful to recognise and accredited it globally. SSIPR will provide the facility of Global Standard Bio-Pharmaceutical research and testing to the Pharmaceutical industry and also invite Ph.D students to complete their thesis and conduct research in Bio-Pharmaceuticals. The institute will start functioning within this year. The ceremony was also attended by Sheikh Saboor Ahmed, Dr. Qamar ul Haq, Registrar of Federal Urdu University, Dr. Ali Akbar Sial, Dean Faculty of Pharmacy of Federal Urdu University and Dr. Muhammad Saleh and Dr. Mirza Tasawur Baig. PR
KARACHI: Ms. H. Betül Akin, Commercial Attaché of Republic of Turkey called on Trading Corporation of Pakistan (TCP) Chairman Mr. Tahir Raza Naqvi and informed him about the existing business relationships between the two brotherly countries. She informed that she was recently appointed in Karachi consulate and she look forward to strengthen the commercial ties between Pakistan and Turkey. Naqvi informed her about the business operations of TCP for maintaining the strategic reserves of essential agro commodities and intervention of TCP in price stabilisation of core commodities, like Sugar, Urea and Wheat. He expressed that strong institutional linkages were important to promote the business interests of both the countries. TCP chairman assured his full support to Turkish commercial attaché in carrying out her assignment.PR
(R to L): Chevron Pakistan Limited Brand Marketing Specialist Hussan-ul-Muaab, Chevron Pakistan Limited Sales Manager Retail & C&I North Shahzad Rizvi, Chevron Pakistan Limited Country Representative Nadeem N. Jafarey, McDonald’s Pakistan Director Marketing & Development Jamil Ahmed Mughal and McDonald’s Pakistan Senior Manager Real Estate Development Emraan Razi.
Ground breaking ceremony of SSIPR
NBP inaugurates help desk at Tahweel Al Rajhi
Federal Urdu University has announced the formation of Pakistan’s first Pharmaceutical Research Institute with the name of “Sheikh Saboor Institute of Pharmaceutical Research (SSIPR).” Prof. Dr. Muhammad Qaiser, The vice chancellor of Federal Urdu University of Science & Technology had proudly announced the formation of
KARACHI: Recently NBP inaugurated helpdesk at Tahweel Al Rajhi - Al-Khobar Centre, Eastern Region, Saudi Arabia for Home Remittance Customers. SEVP/Group chief and NBP Exchange Company Limited chairman Khalid Bin Shaheen, inaugurated the helpdesk along with senior official of Al-Rajhi Bank and Tahweel Al-Rajhi. PR
Wednesday, 16 January, 2013