The nine month's financials of current year 2005-06 have been downloaded from the company's website whereas last year's (FY 2004-05) printed report has been received. Last year's performance statistics and write up follows after current nine months review.
During the nine months of the current financial year (9M 2005-06), the company posted net sales in terms of value at Rs 12.213 billion which is 70.7% higher than Rs 7.152 billion posted in the nine months (July/March 2004-05) of last year.
The net sales of the nine months of current year are 22.1% higher than last full year's net sales of Rs 10 billion.
Gross profit of 9M 2005-06 at Rs 386.31 million and operating profit at Rs 293.72 million of the period were 20.2% and 13.98% respectively higher than same period last year (SPLY). During 9M 2005-06, the company's financial and other charges increased to Rs 162.48 million which are more than double of Rs 76.65 million of SPLY.
Net profit at Rs 146.18 million for the nine months of current year are 32% higher than last full year (FY 2004-05) net profit of Rs 110.91 million.
Bosicor Pakistan Limited is a milestone achievement in the corporate sector of the largest province (in terms of area) of Balochistan because it is the first refinery of the province. The company was incorporated on January 9, 1995 as a public limited company with the objective of acquiring, setting up and operating an oil refinery of 30,000 barrels per day capacity.
The plant consists of a Crude Distillation unit, the Reformer unit, the kerosene Merox Unit, Utilities, offsites and associated ancillaries. The refinery is situated at District Hub, Lasbella, Balochistan, 1/2 kilometres from Hubco.
The company completed its first turnaround on August 15, 2005, after starting its trial operations in November 2003 at a capacity of 8,000 barrels per day and started commercial operations on July 1, 2004. It increased its capacity to 18,500 barrels per day by September 30, 2005.
According to the Annual Report 2004-05 there is a revamp project in hand to enhance crude oil processing capacity upto + 30,000 barrels per day. Work on detail engineering commenced in October 2005.
According to the Third Quarterly Report 2005-06, the project will be operational by first quarter of coming year (July-September FY 2006-07). It has been also reported that Isomerization plant will be purchased to convert Naphtha to Motor Spirit for which L/C were established.
In order to reduce the cost Bosicor Pakistan has planned to install a floating jetty near the coastal line of Balochistan which would help the company to bring bigger vessels of as much as 120 thousand tonnes capacity to reduce the Ocean freight, serve transportation cost and losses during transit.
In line with the floating jetty (SBM) Bosicor has also planned to build 11 storage tanks to cover the storage capacity at site.
Bosicor is also planning to install as much as 100 petrol pumps in the rural and urban areas in the next two years as the company has the licences to sell petroleum products. An investment of 500 million rupees has been earmarked and the company's marketing team already started spadework to achieve this goal in an efficient manner.
The company is listed on the Karachi and Lahore stock exchanges. Currently the share of the company is trading at Rs 21.40 per share which is more than double of the par value. During the last one year investors have shown keen interest in the company as market value of the share sharply trended upward from Rs 12.00 to Rs 36.75 per share. As regards ownership of its equity, Bosicor Corporation Limited held 63.9% of the company's stock on June 30, 2005. Its 7,562 individual shareholders owned 27.61% of the company's stock.
At the apex of the Board of Directors is the Chairman and CEO M. Parvez Abbasi (according to the Annual Report 2004-05). In the 3rd Quarterly Report of current year 2005-06, the President and CEO is M. Wasi Khan. As regards organisation chart it has been reported in the website that the chart is under construction. The 3rd quarterly directors report has been signed by Amir A. Abbassicy Vice Chairman and Director.
The financial year 2004-05 is its first year of commercial operation. In this period the company's net sales amounted to Rs 10 billion. The Directors pointed out that the turnover of the company was lower than "expected" mainly due to the starting of operations at lower throughput which increased gradually during the year. Gross profit was recorded at Rs 391 million and pretax profit at Rs 182 million. The company posted net profit after taxation at Rs 110.91 million which works out to Earnings Per Share at paisas 48 per share.
The directors said that considering the first year of operations and expansion projects in hand, company did not recommend dividend.
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Performance Statistics (Million Rupees)
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30th June 2005 2004
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Share Capital-Paid-up: 2,450.65 1,750.47
Accumulated Profit: 110.91 -
Shareholders Equity: 2,561.56 1,750.47
L.T. Debts: 820.78 1,417.49
Deferred Taxation: 21.49 -
Current Liabilities: 3,472.31 1,995,46
Fixed Assets: 3,274.20 3,148.34
Intangible Assets: 5.77 -
L.T. Deposits & Deferred Costs: 89.90 13.87
Current Assets: 3,506.27 2,001.21
Total Assets: 6,876.14 5,163.42
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Sales, Profit & Pay Out
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Net Sales: 9,998.86 -
Gross Profit: 391.47 -
Operating Profit: 295.57 -
Other Income: 2.79 -
Financial Charges: (9.60) -
(Depreciation): 337.54 -
Profit Before Taxation: 182.39 -
Profit After Taxation: 110.91 -
Earnings Per Share (Rs): 0.48 -
Shares Price (Rs) on 14-07-06: 21.40 -
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Financial Ratios
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Price/Earning Ratio (Times): 44.58 -
Book Value Per Share (Times): 10.45 10.00
Price/Book Value Ratio (Times): 2.04 -
Debt/Equity Ratio: 24:76 45:55
Current Ratio (Times): 1.01 -
Total Assets/Turnover Ratio (Times): 1.45 -
Days Receivables: 46 -
Days Inventory: 69 -
Gross Profit Margin (%): 3.92 -
Net Profit Margin (%): 1.11 -
R.O.A. (%): 1.61 -
R.O.C.E. (%): 3.26 -
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Capacity & Production (Million US Barrels)
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Designed Annual Refining Capacity: 9.900 -
Actual Throughput: 3.789 -
Capacity Utilization (%): 38.27 -
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