Transport: PAKISTAN INTERNATIONAL CONTAINER TERMINAL LTD - Year Ended 30-6-2003

After the start of the operations from October 15, 2002, the company achieved impressive financial and operating results. Within a short period of 8 months, the company's net revenue was generated at Rs 186.43 million.
After terminal operating costs of Rs 130.90 million, the company posted gross profit at Rs 55.53 million. Gross margin works out to 30% which is quite attractive considering its maiden year of operation.
The financial backbone is robust as evident from the current and debt equity ratios. Financial charges were minimal and admin expenses were 13.5% of net revenue.
The company posted net profit at Rs 18.91 million.
Total net revenue has four components - ie Nellen Crane Revenue, Transportation Revenue, Storage Revenue and Customer Service Revenue. The highest component was Nellen Crane Revenue at 51.5% of total net revenue.
Pakistan International Container Terminal Limited (PICTL) was incorporated in Pakistan as a private limited company on June 27, 2002.
Subsequently on October 04, 2002, PICTL was converted as an unquoted public company limited by shares.
The registered and head offices of the company are located 2nd Floor Business Plaza Mumtaz Hassan Road Karachi. Its Terminal Office is located at Berth No 7, East Wharf Karachi. Subsequent to the balance sheet date, the company was listed on Karachi Stock Exchange.
At present the PICTL shares are trading at the price of Rs 21.95 per share which is more than double of the par value.
On the listing date August 20, 2003, 15.2 million shares of Rs 10 each were offered to general public vide a prospectus.
While 800,000 shares were directly offend to employees of the company.
The shares were oversubscribed and share subscriptions amounted to Rs 1.33 billion.
The company was set-up solely as a terminal operating company of the Marine Group.
Premier Mercantile Services (Pvt) Ltd (PMS) was awarded a 21-year concession to build and operate a dedicated container terminal at berths 6-9, Karachi Port on a BoI basis in April 2002.
This Terminal Operating Company (TOC) would have the capability of handling upto 450 thousand Twenty Foot Equivalent Container Units (TEUs) per annum.
The other important provision of this concession is a commitment to meet the expanding needs for future container traffic growth and to complete the physical implementation of Phase 1 by April 17, 2004.
The chairman reported that all requirements of the Concession Agreement has been fulfilled as of date.
Ship-to-Shore Mobile harbour cranes acquired from PMS are currently being used by PICTL to handle containers to and from the vessels.
These mobile cranes have a low operating cost but their efficiency and reach compares unfavourably with Rail-mounted Ship-to-Shore Gantry Cranes, which have been ordered to ZPMC the largest manufacturer of Gantry Cranes, and are expected to be installed by March 2004.
The higher efficiency of there Gantry Cranes makes them the preferred choice for the vessels as their turnaround time is significantly reduced.
Once there cranes are in operation, the company these will be able to enhance its tariffs, volumes and service capability, all of which will contribute towards higher revenues.
The company has commenced the civil works on the existing facility at the new berths.
In order to reduce financing and development risk, the expansion project is to be completed in four phases (including the initial Phase-I Preliminary).
Notably one key advantage that has accrued to PICTL was the immediate start of operations in October 15, 2002 through the acquisition of handling equipment from PMS and the transfer of PMS customers to the new terminal.
As a result of completion of Phase-I (Preliminary), PICTL is handling in excess of 80 thousand containers per annum, which will be enhanced to 150,000 containers per annum once Phase-I is complete.
By the end of Phase II and Phase III the annual handling capacity will reach 450 thousand containers.

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Performance Statistics                (Million Rupees)

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30 June                              2003         2002

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Share Capital-Paid-up:             408.57         0.01

Unappropriated Profit:              18.90            -

Shareholders Equity:               427.47         0.01

Advance Against Future

 Issue of Shares:                   26.24            -

L.T Debts:                           3.69            -

Deferred Taxation:                   1.90            -

Current Liabilities:                99.23         0.15

Fixed Assets-Tangible:             258.99            -

Intangible Assets:                  38.55            -

L.T Deposits:                       61.12            -

Deferred Costs:                     13.94         0.16

Current Assets:                    185.93            -

Total Assets:                      558.53         0.16

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Revenue, Profit & Pay Out

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Revenue-Net:                       186.43            -

Gross Profit:                       55.53            -

Operating Profit:                   29.10            -

Other Income:                        3.30            -

Financial (Charges):                 1.17            -

(Depreciation):                     11.78            -

Profit Before Taxation:             32.40            -

Profit After Taxation:              18.91            -

Earnings Per Share (Rs):             2.33            -

Share Price (Rs) Dated 11.02.2004:  21.95            -

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Financial Ratios

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Price/Earning Ratio:                 9.42            -

Book Value Per Share:               10.46        10.00

Price/Book Value Ratio:              2.10            -

Debt/Equity Ratio:                   1:99            -

Current Ratio:                       1.86            -

Asset Turn Over Ratio:               0.33            -

Days Receivables:                      92            -

Gross Profit Margin (%):            29.78            -

Net Profit Margin (%):              10.14            -

R.O.A (%):                           3.38            -

R.O.C.E (%):                         4.11            -

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