Tuesday, 15 November 2016

SUNRISE CAPITAL (PVT) LTD | 16 November 2016 | TAKE OFF

Govt ponders over ways to sustain gas price freeze:
 Amid continuing consultations on ways to avoid gas price hike, the government on Tuesday decided to provide at least 358 million cubic feet per day (mmcfd) of natural gas to the industrial sector in winter without affecting residential consumers in Punjab. In a meeting, Finance Minister Ishaq Dar and Petroleum Minister Shahid Khaqan Abbasi exchanged views on at least three proposals that could ensure no increase in gas prices as desired by the prime minister. Assisted by federal secretaries and senior officials of the two ministries, the two ministers agreed that more homework was needed to be done to crystallise a workable solution to continue with gas price freeze without negatively impacting the gas companies, informed sources told Dawn.
FDI declines 48pc to $316m:
Foreign direct investment (FDI) fell 48 per cent year-on-year in the first four months of the fiscal year to $316.1 million, the State Bank of Pakistan (SBP) said on Tuesday. But an increased foreign portfolio investment changed the overall position as total foreign investment jumped by 48pc in this period. The foreign investment of $1 billion in sukuk was included as foreign public investment, which improved the country’s foreign investment profile. However, the real investment or FDI dropped $294m in July-Oct on an annual basis. FDI has been falling for the last many years and the present government has not been able to bring any positive change.
Turkish company acquires Dawlance for $243m:
Turkish company Arçelik A.S., which announced earlier this year that it was buying Pakistan’s home appliances brand Dawlance, said on Tuesday it has obtained all regulatory approvals needed for the $243-million acquisition and the transaction is now complete. The share transfer was completed on Nov 2, Arçelik, one of the key players in the global home appliances industry, said in a statement. Addressing a media briefing, Arçelik CEO Hakan Bulgurlu said the company plans to invest $42m to $50m in its Pakistan’s operations “in the immediate future”.
Lucky power plant to be the first to run on Thar coal; eyes financial close by March next year:
Lucky Electric Power Company Limited (LEPCL), a wholly owned subsidiary of Lucky Cement Limited, is all set to install a 660-megawatt coal-power plant at Bin Qasim, Karachi, which will be the first plant to use Thar coal as fuel 350km from the mine’s mouth. “Lucky Electric’s electricity tariff will be marginally lower compared to the mine-mouth project despite the transportation cost because of a lower rate of return, higher plant efficiency and no water cost,” said LEPCL Chief Executive Officer Intesarul Haq Haqqi while speaking to media on Tuesday.
Energy supply: SNGPL pushes down UFG loss significantly
The performance of Sui Northern Gas Pipelines Limited (SNGPL) is getting better swiftly as losses caused by theft and leakages have gone down significantly, which will lead to an addition of billions of rupees to the company’s profit. SNGPL’s unaccounted-for-gas (UFG) loss, caused by gas stealing and system leakages, had dropped from 11.13% in July 2015 to 9.14% in June 2016, resulting in improved earnings for the gas utility. Now, the loss has come down further.  Apart from this, the company is working on augmenting its pipeline network to enhance capacity and transmit 1.2 billion cubic feet of liquefied natural gas per day. “The UFG loss has fallen further to 8.3% and its impact will be reflected in the company’s upcoming revenue requirement,” revealed a senior official of SNGPL while talking to The Express Tribune. “A 1% reduction in the UFG level means injection of Rs2 billion into its profit.”
Honda Atlas posts Rs1.5 billion profit in Jul-Sept:
Honda Atlas Cars has posted an impressive net profit of Rs1.5 billion in the quarter ended September 30, 2016, up 107% compared with Rs726 million in the same period of previous year, according to a company notice sent to the Pakistan Stock Exchange (PSX). Earnings per share improved to Rs10.32 in the period under review compared to Rs5.08 in the corresponding period of last year. The results were in line with market expectations. Honda Atlas Cars stock closed down 1% at Rs578.99 at the PSX on Tuesday. The benchmark KSE 100-share index closed at 42,292, down 233 points or 0.55%.
Ministry threatens to terminate 650 megawatts supply to K-E
Ministry of Water and Power has reportedly threatened to terminate 650MW power supply to Karachi Electric (KE) in case the power utility does not clear the 'outstanding' payment of Rs 51 billion, well informed sources told Business Recorder. A delegation of K-E recently met Secretary Water and Power Younus Dagha in Islamabad to seek his help in getting federal government's consent on new Sale Purchase Agreement (SPA) between Abraaj Group and Shanghai Electric. However, the incumbent management failed to convince Secretary Water and Power because no documents about the new deal were shared with him. M/s Shanghai Electric of China will acquire 66.4 percent stake in K-Electric for $ 1.77 billion from the Abraaj Group. SECP maintains that Shanghai Electric Power is legally required to submit a copy of agreement for acquisition of voting shares of the K-Electric within 180 days of the public announcement of the intention.
Industrial consumers of KE: ECC approves Rs 3 per unit reduction in base tariff
The Economic Co-ordination Committee (ECC) has approved Rs 3 per unit reduction on the existing base tariff for industrial consumers of Karachi Electric (KE) as is available to power Distribution Companies (Discos). Official sources told Business Recorder that Ministry of Water and Power revealed that the ECC in its decision of January 28, 2016 had decided that the existing base tariff for the industrial consumers of all Discos be reduced by up to Rs 3/kWh for the financial year 2015-16 for electricity consumed with effective from January 1, 2016 to maintain a uniform tariff and directed the Ministry of Water and Power to issue policy guideline to Nepra not to pass on negative fuel price adjustment to the industrial consumers till the tariff determination/notification of all Discos. The ECC decision besides SRO No 395(1) 2016 of May 3, 2016 was forwarded to all stakeholders for implementation.
Finance Act: FED on cigarettes to be raised from November 30
According to the announcement made in the Finance Act 2016, Federal Excise Duty (FED) on cigarettes will be increased with effect from November 30, 2016. This has been stated by Dr Muhammad Iqbal, official Spokesman for the Federal Board of Revenue (FBR) while taking to Business Recorder Tuesday. Dr Iqbal further explained that the FED on locally produced higher tier cigarette brands will be increased from Rs3,436 to Rs3,705 per 1,000 sticks and on locally produced lower tier cigarette brands, from Rs1,534 to Rs1,649 per 1,000 sticks. The cigarette manufacturers will have to pay duty on the basis of increased rates for cigarettes sold on or after 1st December, 2016, he added.



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