KARACHI, April 24: The Pakistan PTA Limited reported first quarter (Q1) 2003 operating profit at Rs399 million, which compared to an operating loss of Rs653 million in the corresponding quarter last year.
The company, 69 per cent owned by the ICI Plc (through ICI Omicron BV), manufactures Pure Terephthalic Acid (PTA) used in making Polyester fibre, at a plant at Port Qasim. The company announced financial figures on Thursday.
In a press release, the company stated that the Asian PTA market had been buoyant during the quarter on the back of strengthening upstream markets. Paraxylene price had increased, and PTA prices had risen also, so that the margin for PTA over paraxylene was 69 per cent higher than in Q1 of 2002. The company said that production and sales volume were also well above 2001, showing gains of 19 and 24 per cent.
Financial charges were much lower following the 2002 Rights issue and lower interest rates on debt, so that the loss after tax was only Rs58 million, against the loss of Rs1,354 million the year before.
A day earlier, at the annual general meeting on Wednesday, shareholders in Pakistan PTA Limited approved accounts for the year 2002. Actual production during the year was 403,795 tons and sales stood at 430,856 tons. Net sales value in 2002 were Rs14.1 billion, up 12 per cent over 2001. The company had recorded a smaller operating loss of Rs194 million, in place of the mammoth loss of Rs1,788 million the previous year. The company noted that financial charges were much lower, due to lower interest rates and a rights issue for $100 million in equity, which was used to pay down debts. “As a result the improvement in loss after tax was even more marked at Rs2,538 million for 2002 against Rs4,598 million for 2001,” the company said.
