November 01, 2006	Wednesday	Shawwal 8, 1427

KARACHI, Oct 31: On the last day of the current reporting season on Tuesday, three briskly traded companies unveiled their financial figures. Those included Pakistan State Oil (PSO), Hub Power Company (Hubco) and Adamjee Insurance.

PSO: For the first quarter ended Sept 30 of the financial year 2007 the company posted net income of Rs567m, translating into earnings per share (eps) at Rs3.3. The earnings for the period under review stood lower by 77 per cent over profit after tax (PAT) amounting to Rs2,502 million earned in the corresponding period last year, which had represented eps at Rs14.60.

The company did not announce any payout with the results and none was expected by the market. Net sales of PSO in 1QFY07 stood at Rs86.3bn as against Rs59.7bn in same time last year, representing a growth of 44pc.

A statement released by PSO stated that the company’s sales revenue (gross) had touched Rs101 billion compared to Rs71 billion in the corresponding period of the previous year and PAT stood at Rs0.6 billion versus Rs2.5 billion during 1QFY06, “caused by inventory losses suffered because of a sharp fall in the international price of oil during Sept 2006, as against an increase during the corresponding period last year, which had resulted in inventory gains”. The company complained of increasing receivables from the government on account of subsidised oil prices, which also caused its financial costs to climb, whereas change in the margin regime in March 2006 also impacted company’s earnings.

The company said that higher global prices of petroleum products during July-Aug 2006 had resulted in a countrywide decline in consumption in various fuel categories: diesel was reduced by 5 per cent and motor gasoline by 9.8 per cent.

“PSO emerged as leader with 68 per cent market share through an exceptional performance in furnace oil, which registered a growth of around 98 per cent in volumes over 1Q06”, the company claimed and added that it had enhanced market share in motor gasoline from 44.6 to 46.1 per cent; in diesel from 55.6 to 59.8 per cent and in furnace oil from 74.5 to 80.2 per cent.

Hubco: Net profit of Hub Power Company Limited for the three months ended Sept 30, 2006 edged higher by 13 per cent to Rs722.2 million, from Rs638.3 million in the corresponding quarter of the previous year. Those represented eps at Rs0.62 for the quarter under review and Rs0.55 for the same time of 2005.

The 1Q07 turnover was sharply up to Rs11.7 billion, from Rs4.1 billion, but an equal rise was noted in operating costs which increased to Rs10.6 billion, from Rs3.0 billion, which resulted in about an equal gross profit at Rs1.1 billion in both the periods.

In the report accompanying the 1Q results, directors noted that both turnover and operating costs had registered an increase in the quarter under review compared to the similar three months of last year mainly due to higher load factor of 87 per cent (2005: 19 per cent) and higher fuel oil prices. No interim dividend was declared.

Adamjee Insurance: During the nine months 2006, Adamjee Insurance posted net income of Rs1.28bn (diluted EPS Rs12.7) compared to Rs772m (diluted EPS Rs7.6) in the comparable period of last year, representing growth of 68 per cent. Underwriting business of the company registered a decline of 14 per cent to Rs347m from Rs402m in the corresponding period of last year.

Analyst Muhammad Imran at JS Capital Markets thought that the reason behind the decline was higher claim ratio. Claim ratio (net claims to net premium) of the company in nine months of 2006 increased to 65pc from 56 per cent. Investment income of the company contributed Rs1.2 billion, which was about twice the company had earned under this head in the same time last year. He said that much of that represented higher capital gains.

The market which was in a bearish mood on Tuesday closing with a loss of 200 points did not take kindly to the results. The PSO stock declined by Rs13 to Rs300 ex-d, ex-b, with trading noted in 2.58 million shares.

Hubco shed 60 paisa to close at Rs25.60 ex-d on 0.849 million shares. Adamjee shed Rs4.20 to finish at Rs171.80 ex-d, ex-b, as 0.850 million shares changed hands.