Trade Chronicle Nov - Dec - 2020 issue
Pakistan Leather Industry, Pakistan Cement Industry, Pakistan Ports and Shipping Industry, Pakistan Automobile Industry, Pakistan Oil and Gas, Pakistan Steel Industry, Pakistan Telecommunication, etc.
Pakistan Leather Industry, Pakistan Cement Industry, Pakistan Ports and Shipping Industry, Pakistan Automobile Industry, Pakistan Oil and Gas, Pakistan Steel Industry, Pakistan Telecommunication, etc.
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TRADE CHRONICLE
PNSC releases financial results
for the 1Q202-20
The Board of Directors of Pakistan
National Shipping Corporation Group
(the Group/PNSC) have submited
the consolidated and unconsolidated
condensed interim financial statements
of PNSC and Group respectively for
the first quarter ended September 30,
2020.
Despite the challenges posed by
COVID-19 pandemic, Pakistan’s
economy has started showing signs
of recovery. Positive current account
balance and improvement in LSM
growth are some of the early signs
of economic revival and stability. The
PNSC Group managed to achieve a
74% increase in profit after tax to Rs
859 million as against Rs 495 million
in the corresponding period last year.
Group earnings per share increased
to Rs 6.50 as against Rs 3.75 in the
corresponding period last year.
Cumulatively, the Group achieved a
turnover of Rs 3,971 million (including
Rs 885 million from PNSC-standalone)
as compared to Rs 3,274 million
(including Rs 569 million from PNSCstandalone)
for the corresponding
period last year. This includes
substantial growth in revenue of 73%
from Rs 410 million to Rs 709 million in
Two ships with 115,500 tonnes
of wheat arrive
Two vessels Densa
Jaguar and Scarlet
Lady carrying 52,500
and 63,000 tonnes of
wheat, respectively,
were berthed at the
Karachi Port and
Port Qasim, the
Trading Corporation of
Pakistan (TCP) said.
With the arrival of
these two vessels,
the TCP has so far
imported a total of
391,625 tonnes of
wheat into the country,
the press release said.
The TCP began importing wheat from
September onwards whereas the
private sector had initiated imports
from the last week of August.
foreign tankers segment and
growth in revenue of 19%
from Rs 2,079 million to Rs
2,467 million in managed
tankers segment. There is a
decline in bulk carrier segment from Rs
586 million to Rs 468 million during the
current period due to decline in average
Baltic Dry Index from 2,037 to 1,521 in
the current period as compared to the
corresponding period last year.
The fleet direct expenses during the
period under review increased to Rs
2,630 million (including Rs 438 million
from PNSC standalone) from Rs 2,256
million (including Rs 298 million from
PNSC-standalone).
The Gross Profit stood at Rs 1,308
million as against Rs 977 million for
the same period last year an increase
of 34%. The PNSC standalone results
reflect a loss after tax of Rs 24 million
as compared to a loss after tax of Rs
Data issued by the Pakistan
Bureau of Statistics showed that
the country has imports around
898,904 worth $214 million tonnes
of wheat into the country between the
July to October. The average per tonne
price of imported wheat was $238.
260 million in the corresponding period
last year, mainly due to reduction in
the volume of slot chartering activities.
PNSC loss per share decreased to
Rs 0.18 as against Rs 1.97 in the
corresponding period last year.
The finance cost on long-term financing
decreased by 39% to Rs 154 million in
the current period as against Rs 303
million in the same period last year.
Coupled with a decrease in quantum of
long term financing due to repayments
made during the period, a major
reason for a decline in finance cost is a
reduction in the discount rate by State
Bank of Pakistan (SBP).
FUTURE PROSPECTS
The newly approved shipping policy
with extended exemption from sales
tax and customs duty up to FY 2030,
coupled with the availability of cheaper
financing in the form of Long Term
Finance Facility creates an opportunity
for PNSC to expand its fleet portfolio.
PNSC is working on plans for
maintenance and up-gradation of
PNSC’s existing fleet. This should lead
to a decrease in operating costs.
PNSC also has a business expansion
plan and intends to induct more vessels
in the fleet of its managed vessels
during FY 2020-2021.
However, consumers have so far
not witnessed any big relief despite
massive imports of wheat by the private
sector and the government as flour
millers in Sindh had
cut price of various
flour varieties by just
Rs7 per kg in the last
week of October.
A number of retailers
are, however, still
selling various
varieties of flour at
Rs70 per kg.
Cereal Association of
Pakistan Chairman
Muzzamil Chappal
said the private sector
had so far imported
1.2 million tonnes of
wheat from Ukraine,
Russia and Germany which at least
helped in containing further hike in flour
prices.
TRADE CHRONICLE - Nov - Dec - 2020 - Page # 12