Thursday, 18 February 2016

EFU General Insurace full year profit exceeds Rs4 billion

The Board of Directors of EFU General Insurance approved financial accounts, payment of 45 percent final dividend and issue 25 percent bonus shares for the year 2015. The company had already paid 30 percent interim dividend, which will take full year payout to 75 percent.
For the year ended 31st December 2015 the company has posted profit after tax of Rs4,033 million (EPS: Rs25.21) as compared to profit of Rs1,829 million (EPS: Rs11.43), an increase of 120 percent.
This excellent performance can be attributed to a number of factors that include: 1) underwriting income rising to Rs1,533 million from Rs1,316 million, 2) investment income increasing to Rs1,202 million from Rs914 million and 3) reversal of provision for impairment of an associate company amounting to Rs1,987 million.

Wednesday, 17 February 2016

ODGC profit declines by 28.5 percent


Pakistan’s largest exploration and production enterprise, Oil & Gas Development Company (OGDC) has released its half yearly financial results for the period ended 31st December 2015. OGDC profit eroded by 28.5 per cent but the Board of Directors was generous enough in approving payment of second interim dividend of 12 percent, taking payment during first half to 27 percent.

OGDC has posted profit after tax of Rs34.206 billion (EPS: Rs7.95) during the period under review as compared to net profit of Rs47.828 billion (EPS: Rs11.12) for the corresponding period a year ago, down by 28.5 percent.

Net sales of OGDC plunged to Rs86.186 billion during July-December 2015 from Rs118.64 billion during the same period 2014, a decline of 27.35 percent.

OGDC has presence in the four provinces, largest portfolio of hydrocarbon reserves – 59 percent of oil and 36 percent of gas as at 30th June 2015.

OGDC’s average daily production is 40,028 barrel oil, 1,116mmcf gas, 312tons LPG and 28 tons Sulphur. It contributed 28 percent to total gas and 48 percent to crude oil production


Tuesday, 16 February 2016

PSO posts 57 percent increase in profit after tax


On Tuesday, Pakistan’s largest oil marketing company, Pakistan State Oil Company Limited (PSO) released its half yearly results and also announce approval of 50 percent dividend by the Board of Directors. The results were above market expectations.

PSO has posted profit after tax of Rs6.7 billion (EPS: Rs24.76) for the half year ended 31st December 2015 as compared to profit of Rs4.2 billion (EPS: Rs15.76) for the corresponding period of 2014, an increase of 57 percent.

The major takeaways are: 1) reduction in financial cost to Rs3.6 billion from Rs5.9 billion, may be because of improved cash flow and declining interest rates, 2) increase in share of profit of associates rising to Rs388 million from Rs23 million and 3) other income also went down to Rs5.3 billion from Rs6.7 billion.

Net sales of the company declined by over 30 percent to Rs353.9 billion from Rs508.2 billion. This erosion can be attributed to the declining trend in international prices of crude oil, also affecting prices of POL products being dispensed by PSO.

Sunday, 14 February 2016

US, Russia and Pakistan trio



The USA and Russia, it seems, are now being pulled together by the exigencies of the times and, in the interest of world peace, are exploring ways to cooperate with each other rather than follow their old adversarial trajectories. This was more than obvious in the greetings message that President Putin sent to President Barack Obama last Christmas. The US Secretary of State, John Kerry’s visit to the Kremlin is also a case in point. And this was all happening despite Putin’s Crimea campaign and the fact that US ally Turkey shot down a Russian fighter jet over Syria.
Russia (as the USSR) and the USA have been traditional rivals since the end of World War II. Both were contemporary superpowers in their time. When the USSR was dismantled, some say, following American machinations, the USA was left as the world’s only superpower. But while the rivalry progressed in the 50s, 60s and 70s, it produced some interesting aspects. Both tried to one-up each other during this period. They raced against each other on the ground in terms of military forces and arms and in space with their respective rockets and satellite programs.
In fact the US and Russia have a long history of trying to outdo one another. Many bilateral rivalries have occurred between the two throughout their tumultuous history.
After World War II, an arms race between the US and the Soviet Union ignited, with both powers vying to be kings of advanced weaponry. This technological rivalry naturally evolved from mere rocket-based arms to the exploration of the cosmos, as both nations raced to put a satellite, an animal, and a man into orbit. The Soviets darted fast out of the gate, launching the Sputnik 1 and Sputnik 2 (with Laika the dog in tow) into orbit in 1957. However, when the US astronauts, the Soviet cosmonauts and President John F. Kennedy entered the picture in the 60s, the race really heated up. On April 12, 1961, the Soviets catapulted Yuri Gagarin — a pilot in the Soviet Air Force who had once fled his village from a German invasion — into orbit.
Not to be outdone, President Kennedy soon addressed Congress and the nation and demanded that the US put a man on the moon by the end of the decade. Heeding the call, American astronaut John Glenn one-upped Gagarin by orbiting the Earth three times in 1962. The next year, Cosmonaut Valentia Tereshkova became the first woman in space. And so a back-and-forth power-and-prestige grab ensued and lasted until the end of the decade. On July 20, 1969, astronauts Neil Armstrong and Edwin Aldrin touched down on the moon. Moments later, when Armstrong announced that “the Eagle has landed” and stepped onto the moon, the space race had been won. In 1972, chess player Bobby Fischer took it on himself to topple the Soviet Union’s almost 25-year dominance in the sport when he went up against current world champion Boris Spassky. Given the bilateral relations between the two countries at the time, it’s no surprise that the 21-game match in Reykjavik, Iceland, drew worldwide interest. Despite some infuriating disappearing acts and seemingly high- maintenance demands from Fischer, the eccentric American genius ultimatelyproved victorious (and even won a rematch against Spassky in 1992) and is considered by many to be the greatest chess player who ever lived.
In the 80s, Ronald Reagan challenged Mikhail Gorbachev, the leader of the Soviet Union. Standing in front of the Brandenburg Gate in Berlin on June 12, 1987, Reagan firmly commanded Gorbachev to “Tear down this wall!” This was the infamous Berlin Wall, which separated East Germany from West Germany. Twenty-nine months later the wall fell.
The thawing relations between the America and Russia were marred after Turkey shot down a Russian fighter jet. It was feared that Russia would retaliate but it decided not to in all probability because a Russian attack on a Nato country would have been akin to an international war. The change in US policy towards Russia became too obvious when US Secretary of State John Kerry visited Moscow. This was pursuant to the efforts being made to organize talks aimed at ending the Syrian civil war.
Historically Pakistan has hardly enjoyed cordial relations with the USSR. After fragmentation of the USSR into smaller republics, Russia was always seen by Pakistan’s ruling junta as a foe rather than a friend. Lately, the Russian regime has been making a deliberate attempt to bridge the confidence gap but animosity spread over decades is not likely to turn into friendship easily through Pakistan has recently purchased some advanced military helicopters from Russia. Both countries need to work harder to forget the past but many factors continue to haunt the relationship, the worst being the ever-changing geopolitical scenario which often turns friends into foes or the other way round.
Since its independence, Pakistan has remained under the umbrella of US foreign policy. It provided airbases to the US from which spy planes would snoop on the USSR. At one stage, the USSR even threatened to attack these bases. One important factor that ruined potential Pakistan-USSR relations right in the beginning was cancellation of Prime Minister Liaquat Ali Khan’s visit to the USSR as he chose to go to the US at the eleventh hour.
Pakistan always enjoyed cordial relations with China and is known as its ‘time-tested friend.’ This often restricted Pakistan’s relations with the US, India and the USSR. Later, Pakistan’s relations with China were condoned by the US due to its growing trade ties but Russia has always remained a foe in the Pakistani perception.
Russia and the United States have always maintained diplomatic relations, but the already strained relations between Russia and the U.S. have greatly deteriorated due to the Ukrainian crisis and the Syrian Civil War. Even then, despite the tensions between both countries, the United States and Russia are still willing to cooperate and work together on international issues such as security and international peace – and that is the silver lining for world peace.
This article was originally published in South Asia magazine published from Pakistan http://southasia.com.pk/international.html