Raising $2 billion and having a commitment of $7 billion from international bond market with a lions share from the US domestic investors is a job well done by Dar and team! Though the rates were too high and analysts are susceptible about the utility of the money raised, it has defined the appetite of global bond markets for Pakistan. In a nutshell, its a confidence booster.
Its a healthy sign that earnings of the exploration and production sector are being driven by production flows and not just rupee depreciation and subsequent increase in prices. Like others, Pakistan Oilfields Limited (POL), the third largest E&P firm in the country, has been witnessing increased production flows. The tilt has been towards oil production, and why shouldn it be? Favourable oil price and production prospects amid dwindling gas flows are enough reasons for E&P companies to focus more on oil flows.
The first quarter came to an end and 1Q CY14 numbers showed a sound quarter revival versus losses posted in previous quarter. The improved quarter-on-quarter performance likely hints at likely recovery for the company in terms of volumes.
The oil marketing sector has been in the limelight this year after the improvement in the liquidity and rising petroleum product consumption in the country. Rising oil sales, particularly of furnace oil and motor gasoline, have been strengthening OMC revenues including that of Attock Petroleum Limited (APL).
Askari Bank Limited (AKBL) led the pack in announcing the 1Q CY14 results of the banking sector and undoubtedly it was a pleasant kick-start. AKBL that has been posting losses since it was taken over by the Fauji group due to rigorous book cleaning strategy undertaken by the management, turned to profits in 1Q CY14.
The rising gap between the revenues and earnings of National Refinery Limited (NRL) should be concerning for the firm. While revenues of the firm during 9M FY14 increased by 20 percent year on year, the bottom line nosedived to almost one fifth of what it was in 9M FY13.
Managing to achieve a double-digit growth for a company like Abbott Pakistan is a matter-of-course. Undeterred by the hardships being faced by the pharmaceutical industry owing to irrational pricing mechanism, Abbott Pakistans diversified product mix has rescued the company from facing downturns in yester years. And 1Q FY14 is no exception to this observation.