| Oil and Gas Marketing
Companies. |
| Haroon Oils Limited |
| Year Ended 30-6-2003 |
Overview
The year under review may be termed as turn around year as the
company has escaped from going in to the red. It has booked
profit replacing the provirus year’s loss.
This is remarkable performance in the midst of fierce
competition in the lubricating oil market which is
dominated by giant multinational and local players. The
company is experiencing continuous downward slide in sales.
The gross profit is also lower as compare to the previous
year’s. But it has made substantial reduction in financial
cost, Administrative expenses, selling and distribution
expenses and came up with cash dividend @ 13%, Chairperson
Amber H. Saigol informed that the company has recently
launched new competitive products and has managed to sign
contracts with the government departments including Pakistan
Railways. It has been able to repay most of high cash
borrowings.
Nearly 40 years ago Haroon Oils Limited was incorporated in
the province of sindh as a Public Limited Company under the
companies act 1913 (Now Companies Ordinance, 1984).
It was listed at Karachi Stock Exchange in 1985. Its shares
are also quoted on Lahore Stock Exchange. At present Haroon
Oil shares are being quoted at the price of Rs. 59.10
Which is nearly 6 times of the par value. This price has
remained constant for the last 52 weeks.
The principle activity of the company is blending and sale of
lubricating oils and greases. The registered office of the
company is situated at 11-Dockyard Road West Wharf Karachi.
Its branch office is in Regency Plaza Gulbarg II Lahore.
There has been impotent changes in the Board of Directors of
Harron Oils Limited. Ms Shehnila Parekh and S Hashim Ishaque
resigned from the Board on 13th January 2003 and 3rd February
2003 respectively and the casual vacancy thus created were
filled by Shahid Anwar and Imran Azim on 15th January 2003 and
19th February 2003 respectively.
Imran Azim has taken over as chief executive of the company
replacing the outgoing chief executive Mr S. Hashim
Ishaque. |
|
The remuneration of chief executive is Rs 2.61 million and lst
year CE's remuneration had amounted to Rs. 2.54 million.
During the year under review the company has made additions in
the fixed assets to the extent of Rs 5.56 million out of which
the amount of Rs 4.62 million was booked for vehicles.
According to the detail of share holdings, Haroon Sons Pvt Ltd
has 31.43% stock of the company. Olympic investments Ltd has
30% stock in the equity. National bank of Pakistan (trustee
deptt) holds 25.32% of the company’s total 800 thousand
shares. The aggregate holdings of 260 individual investors
works out to 9.72% of the company’s stock.
During the year ended June 30, 2003 (FY 2002-03), the company
generated gross sales at Rs 252,72 million as against Rs
276.05 million gross sales posted in the previous FY 2002-03.
The shows 8.45%decline in gross sales as compared to the
preceding year’s. The ten year’s highest gross sales figure
was recorded in 1995 at Rs 502.64 million. The downward slide
in the gross sales goes on end an with every passing of the
year.
Net sales were recorded at Rs 219.55 million which have been
arrived after deduction of sales tax.
It is encouraging to note that gross margin at 20.82% was
little higher than preceding year’s margin of 20.57%.
Administrative expenses were lower by Rs 1.2 million and
selling and distribution expenses were down by Rs 4.3 million
as compared to the preceding year. This enabled the operating
profit to improve over the preceding year’s profit although
the gross profit was down by Rs 3.7 million.
Furthermore, there has been substantial reduction in the
financial charges from Rs 11.26 million in the preceding year
to Rs 6.14 million for the year under review. This reduction
of Rs.5.12 million is highly attractive . This enabled the
enterprise to book profit replacing previous year’s loss. The
company declared cash dividend @ 13%.
| Performance
Statistics (Min Rupees) |
| 30 June |
2003 |
2002 |
Share Capital-Paid-up:
Revenue Reserves:
Shareholders Equity:
L.T Debts:
Current Liabilities
Tangible Fixed Assets:
Intangible Assets:
Investment Property:
L.T Deposits
Deferred Tax
Current Assets |
8.00
20.99
28.99
8.48
45.19
26.74
0.25
2.75
3.90
2.91
46.11 |
8.00
20.19
28.19
19.72
69.22
29.84
-
3.00
4.66
1.79
77.84 |
|
|
Total Assets
Sales, Profit & Pay Out
Net Sales:
Gross Profit:
Operating Profit:
Other Income:
Financial (charges):
(Depreciations):
Profit (Loss) Before Taxation:
Profit (Loss) After Taxation:
Dividend Cash @ 13%
2002:Nil:
Earning per Share (Rs)
Share Price (Rs)
Dated 08.12.03:
Financials Ratios
Price/Earning Ratio:
Book Value Per Share:
Price/Book Value Ratio:
Debt/Equity Ratio:
Current Ratio:
Asset Turn Over Ratio:
Days Receivable:
Days Inventory:
Gross Profit Margin (%):
Net Profit Margin (%):
R.O.A (%):
R.O.C.E. (%):
Plant Capacity & Production
(Metric Tons)
A) Blending Plant
Normal Capacity:
Capacity (Bulk & Drums):
Capacity Drums & Cans 0.7,1,3,4, 10 and
20 Litres:
Actual production of
Drums & Cans: |
82.66
219.55
45.72
7.48
2.67
(6.14)
(4.20)
3.44
1.85
1.04
2.31
59.10
25.58
36.24
1.63
23:77
1.02
2.66
23
32
20.82
0.84
2.24
4.94
12.000
9.000
6.000
3.450 |
117.13
240.16
49.41
5.62
2.78
(11.26)
(5.69)
(5.54)
(6.68)
-
(8.35)
-
-
35.24
-
41:59
1.12
2.05
46
47
20.57
(2.78)
(5.70)
(13.94)
12,000
9,000
6.000
3,844 |
B) The under utilization due to decline in demand
Company Information: Chairperson: Amber H. Saigol; Chief
Executive: Imran Azim; Company Secretary and Chief Financial
Officer: Abdul Aleem Rafique; Registered Office: 11, Dockyard
Road, West Wharf Industrial Area Karachi 74000- ; Branch
Office :Regency Plaza, 120-P, Mini Market, Gulberg-II, Lahore. |
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