Pakistan International Bulk Terminal (PIBTL) held its analyst briefing today to brief investors about FY24 financial results and shed light on the future outlook:
- The company posted a topline of PkR13.8bn in FY24 compared to PkR9.1bn in SPLY, an increase of 53% YoY. The increase in revenue was attributable to an incline in volumes, clocking in at 6.41mn tons, up 32% YoY.
- Management attributed the volume improvement to economic stabilization, the slowdown in imports from Afghanistan and enhanced operational efficiency.
- Sector-wise, cement contributed the largest share, accounting for 35% of the total volumes, followed by power, representing 35%. Traders comprised 15%, while the remaining volume was attributed to other sectors.
- Management informed that no clinker exports were handled in FY24.
- Earnings for the year clocked in at PkR1.6bn (EPS: PkR0.92) in FY24, compared to a loss of PkR5.2bn (LPS: PkR1.21) in SPLY. The improvement in earnings was due to the absence of exchange loss in FY24, which clocked in at PkR3.1bn in SPLY.
- Earlier today, it was reported that Reko Diq Mining Company had approached PIBTL for cargo handling services. However, management declined to comment on the volumes and scope of the work, as the matter is currently in the regulatory approval phase.
- During 1HFY25, management stated that demand for coal remained low due to a slowdown in economic activity.
- As we advance, management anticipates the cement sector will remain the largest client, followed by the power sector, and demand to sustain previous year levels amid macroeconomic stability and monetary easing.
- NEPRA’s conditional stance on coal imports for the power sector had confused the market. However, an uptick in activity is expected due to the absence of import restrictions, supported by improved foreign exchange reserves.
- The company has an annual coal handling capacity of 12 million tons and has also stated that it is equipped to handle Thar Coal exports whenever the government requests them.
- The script is not in our formal coverage.
- Courtesy – AKD research
