Trade Chronicle Sep - Oct - 2020 issue
Pakistan Leather Industry, Pakistan Cement Industry, Pakistan Ports and Shipping Industry, Top changes in Pakistan, Pakistan Automobile Industry, Pakistan Oil and Gas, Pakistan Steel Industry, Pakistan Telecommunication, etc.
Pakistan Leather Industry, Pakistan Cement Industry, Pakistan Ports and Shipping Industry, Top changes in Pakistan, Pakistan Automobile Industry, Pakistan Oil and Gas, Pakistan Steel Industry, Pakistan Telecommunication, etc.
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TRADE CHRONICLE
PNSC (Group) consolidated profits
rise by 10% in FY 2019/20
Pakistan National Shipping Corporation
(PNSC) has stated that despite the
pandemic situation arising from COVID-19
and adverse macroeconomic indicators
at the local and global level, it performed
well. “The state-owned
shipping company
achieved a top-line
growth of approximately
21% as compared to
the preceding year
due to the induction of
two oil tankers, a slight
increase in average
AFRA and World Scale
which reflected in
liquid cargo business
and positive upward
fluctuation in USD
exchange rates”. This was stated by Mr
Shakeel Ahmed Mangnejo, Chairman
and Chief Executive of PNSC in the
annual report FY2020.
During the current year, PNSC (Group)
consolidated profit after tax stood at PKR
2.414 billion, which is higher by 10%
than prior year PKR 2.194 billion, which
PICTL financial results for the halfyear
ended June 30, 2020
Pakistan International Container
Terminal Limited (PICTL)
has reported that during the
half-year, the Company has
achieved Revenue of Rs
4,115.98 million as compared
to Rs 3,805.48 million in the
corresponding period last year
despite a slight decrease in
container volumes by 4%.
Further, the Company, through
operational excellence and
cost optimizations, concluded
the half-year with a Gross
Profit of Rs 1,833.14 million.
The half-year ended with
a net profit of Rs 1,171.79
million which is 17%
higher as compared to the
corresponding period last year. The
Company is making concerted efforts to
mitigate the effects of Covid-19 pandemic
and competition through minimisation
of costs, maximization of efficiencies,
increased productivity through innovation
shows a good achievement
considering the depressed
bulk carrier cargo market.
During the year average charter
out rate of bulk carriers experienced a
declining trend during second and third
quarters, while AFRA and World Scale
increased to the benefit of the Group.
The fluctuations gave a tough time to bulk
carrier segment, while tankers yielded
better revenues than the prior year.
The positive market elements, along
with rational and most economical use
of resources, resulted in a gross margin
of 33% an increase of 6% from 27% last
while continuing the provision
of improved services to the
customers.
Covid-19 pandemic has
triggered the economic recession
globally, including a slowdown in global
trade, production and supply chain alongwith
lockdowns, travel restrictions and
social distancing measures to contain
the spread of the pandemic. Due to the
economic slowdown during the first half of
year. Net profit for the year increased by
10% during the year as compared to last
year. Earnings per share of the Group
stood at Rs.18.27, which has shown an
increase of 10% against previous year
EPS of Rs.16.61.
Future Outlook
Keeping in view the
dynamics of the global
shipping market, PNSC
remains on the lookout
for the expansion of
its fleet. The two oil
tankers “M.T. Bolan”
and “M.T. Khairpur”
were inducted during
2019. PNSC intends to
further expand its fleet
of managed vessels
during the financial year
2020-21.
During the current year, the State Bank
of Pakistan included the shipping sector
within the ambit of the Long Term Finance
Facility (LTFF). Under this scheme,
financing will be available to PNSC at a
cheaper rate of up to 6%. The financing
under this scheme may be used for a
tenure of up to ten years.
2020, overall container volumes at Karachi
Port dropped by 8%. This also impacted
PICT volumes. However, through “Beyond
the Gates” strategy coupled with quality
service, your Company managed to retain
a sustainable market share of 175,925
containers as compared to
182,969 containers handled in
the corresponding period last
year.
Future Outlook
The global container market
is expected to drop by 13%
during 2020 amid relative
easing in restrictions due to
Covid19 globally as suggested
per World Trade Organisation.
The Company foresees a
slight improvement in global
trade during the latter half of
the year and resultant impacts
on overall trade activity at
Karachi Port.
Further, the company is continuously
pursuing Karachi Port Trust [KPT] for
extension and expansion of “build,
operate and transfer” contract with KPT.
TRADE CHRONICLE - Sep - Oct - 2020 - Page # 12