ICI Pakistan's profit after tax declines to Rs 1.935 billion

The profit after tax of ICI Pakistan Limited has declined to Rs 1.935 billion in the year ended December 31, 2011 as compared to Rs 2.428 billion earned in 2010. The company's earning per share reduced to Rs 13.95 in the period under review against Rs 17.50 in the same period a year back.
The board of directors of the company in its meeting held on Thursday approved a final cash dividend in respect of the financial year ended December 31, 2011 at the rate of 55 percent ie Rs 5.50 per share of Rs 10 each on the issued and paid up share capital of Rs 1,388,023,000 subject to the approval of the shareholders at the forthcoming annual general meeting, to be payable to the members whose names appear in the register of members on April 20, 2012.
According to the financial results sent to Karachi Stock Exchange, the company's turnover increased to Rs 44.802 billion in 2011 against Rs 39.532 billion in 2010. Sales tax, excise duty, commission and discounts increased to Rs 4.687 billion against Rs 4.402 billion. The company's cost of sales increased to Rs 33.728 billion against Rs 28.443 billion.
The company's profit before taxation declined to Rs 2.912 billion in 2011 against Rs 3.731 billion in 2010. In the major highlights, the company said that its net sales income was up 14 percent over last year. The operating result was 23 percent lower than last year due almost entirely to a further deterioration in the availability of gas by SNGPL to the Soda Ash and Polyester Staple Fibre plants. During the year, gas was not available to the company's Soda Ash and Polyester Staple Fibre plants for 174 days and 186 days respectively, compared to 143 days and 108 days in 2010.
The consequent financial impact on the operating result of using alternative expensive fuel was over Rs 825 million in 2011. The operating result also includes an impairment charge of Rs 210 million, relating to the investment in ICI Pakistan Powergen Limited, a 100 percent owned captive power company in accordance with international financial reporting standards.
The paints, chemicals and life sciences businesses recorded strong growth in margins and operating result. The coal fired boiler project already approved by the board, at a cost of over two billion rupees, is expected to be commissioned in the second quarter of 2013. It will significantly improve the energy economics of the Soda Ash Business.