It is continuing its capital investment to ensure continued growth. During the year under review it launched "Hearts and Minds" initiative to inculcate HSSE (Health, Safety, Security and Environment). This surely reflects the corporate entity's brighter face of being socially responsible corporate citizen.
The company's regular activities to enhance HSSE culture are defensive driving courses, tool box meetings, random vehicle checks, on road inspection and circulation of easy to understand guide lines.
The company's gross turnover increased by 15%, which is due to increase in volumes and average selling prices per tonne. "Other income" increased by approximately Rs 20 million due to increase in return on Defence Saving Certificates and a one off write-off of Group liabilities.
The company posted net profit after taxation at Rs 75.21 million showing 12.33% increase over the preceding year's. The company has no long term debts. It has substantial amount of cylinder and Regular Deposits.
Shell Gas LPG (Pakistan) Limited is a limited liability company incorporated in Pakistan and is listed on the Karachi and Lahore Stock Exchanges.
On June 30, 2005, Shell Petroleum Company Limited held 1.816 million shares of the company out of its total 2.695 million paid up shares of Rs 10 each. This works out to 67.38% of the company's stock and this makes the UK MNC (Multinational Corporation) the largest single shareholder of the company and its holding company.
Its small base of individual shareholders comprises 352 investors and their aggregate shareholding was 15.04% of the company's stock. NBP Trustee Deptt has also sizable number of shares which figures out to 13.8% of the company's stock.
Its shares are considered blue chips and during the last one year the market value of the share was close to Rs 400 per share while the lowest price was quoted at Rs 325 per share. On October 20, 2005 the closing prices of the share was quoted at Rs 338 per share which is nearly 34 times of the par value.
The principal activity of the company is storing and marketing LPG (Liquefied Petroleum Gas) throughout Pakistan. During the year under review Shell Gas LPG Pakistan Limited has changed its registered office and has moved to independent premises.
This visualised that this change will further enable the company to meet its growth aspirations. However this entailed one off cost being one of the factors in increasing the administrative expenses. The new registered office is located in Suite No 606-608, Sixth Floor, The Forum, Block-9 Clifton, Karachi.
During the year under review the company has further extended its reach to its customers and improved its logistics for storage and transportation of its product. The existing facilities were upgraded at Faisalabad and Karachi.
For filling plant upgradation and primary concentration it is optimising resources by consolidating storage and improving operational activities. The report emphasises that this strategy is expected to deliver economies of scale and at the same time conserve manpower resources.
Converting the filling operations from manual to semi-automatic will enhance the filling capacity of the existing plant at Faisalabad. Furthermore recently installed electronic filling machines and check scale on the carousel will increase the filling accuracy and ensure electronic leak detection.
The management expressed their commitment to transport the company's products safely and efficiently by meeting high-level international standards for road transportation. This commitment is being implemented through replacement of packed and bulk fleets.
To ensure a strong portfolio of growth projects, the company is continuing significant capital investment. The company has increased its investment in cylinders, bulk tanks and marketing equipment.
Further more upgradation of its filling plants is also underway which comprises extension of the plant capacity, improvement of premises and consolidation of its storage facilities currently installed at various locations across Pakistan.
The company has 277 fully merchandised and branded Retail Service Centre (RSC) network. The RSC network will provide a solid base for expansion in business for future years. The company also emphasises that it has demonstrated outstanding achievement of having the highest sales per distributor, as compared to its competitors in the industry.
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Performance Statistics (Million Rupees)
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30th June 2005 2004
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Share Capital-Paid-up: 26.95 26.95
Reserves & Surplus: 221.21 162.17
Shareholders Equity: 248.16 189.12
Deferred Taxation: 4.81 1.13
Cylinder & Regulator Deposits: 309.19 292.91
Current Liabilities: 161.41 145.21
Fixed Assets: 418.36 353.37
L.T. Loans: 2.78 2.25
L.T. Deposits: 52.12 35.90
Current Assets: 250.31 236.85
Total Assets: 723.57 628.37
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Sales, Profit & Pay Out
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Net Sales: 867.86 752.82
Gross Profit: 192.35 185.15
Operating Profit: 63.08 78.81
Finance (Cost): (1.53) (3.09)
Other Income: 53.89 33.91
(Depreciation): (51.73) (58.36)
Profit Before Taxation: 107.08 100.80
Profit After Taxation: 75.21 66.95
Earning Per Share (Rs): 27.91 24.84
Dividend Cash @ Rs 7/Share
(2004: Rs 10/Share: 18.87 26.95
Share Price (Rs) on 20/10/05: 338.00 -
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Financial Ratios
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Price/Earning Ratio: 12.11 -
Book Value Per Share: 84.06 70.17
Price/Book Value Ratio: 4.02 -
Debt/Equity Ratio: 0:100 0:100
Current Ratio: 1.55 1.63
Asset Turn Over Ratio: 1.20 1.20
Days Receivables: 4 4
Days Inventory: 6 8
Gross Profit Margin (%): 22.16 24.59
Net Profit Margin (%): 8.67 8.89
R.O.A (%): 10.39 10.65
R.O.C.E (%): 13.37 13.86
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LPG Bottling Plant Capacity & Production
(Average Daily Metric Tons)
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Bottling Capacity: 85 85
Actual Bottled: 85 85
Capacity Utilization: 100.00 100.00
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COMPANY INFORMATION: Chairman: Farooq Rahmatullah; GM & Chief Executive: Fauzia Kazmi; Company Secretary & Chief Financial Officer: Gulzar Khoja; Registered Office Suite No 606-608 6th Floor, The Forum, Block-9 Clifton Karachi-75530; Web Address: Not Reported.
COMPANY INFORMATION: Chairman: Syed Babar Ali; Managing Director and CEO: Sohail Wajahat Siddiqui; Chief Financial Officer and Director: Gerhard Wilcke; Auditors: M/s Taseer Hadi Khalid & Co, Chartered Accountants; Registered Office and Factory: B-72, Estate Avenue, S. I. T. E., Karachi, 75700; Web Address: www.siemens.com.pk.