KARACHI (October 12 2004): Pak-Arab Refinery Ltd (Parco) has declared the highest so far dividend of Rs 2 billion after its profit recorded a tremendous growth of 67 percent for the year ended June 30, 2004.
In its 30th annual general meeting, held on September 28, 2004, the shareholders of Parco, which is a Pakistan-Abu Dhabi joint venture, approved the highest dividend of R 2 billion out of a net profit of Rs 4.43 billion for the year ended June 30, 2004. Compared with the previous year, the net profit and the dividend have improved by 25 percent and 67 percent respectively. The shareholders equity and the asset base of the Company have risen to Rs 22.9 billion and Rs 88.6 billion from Rs 20.4 billion and Rs 84.7 billion at the end of the previous year.
The Company continues to enjoy AAA and A 1+ long and short-term credit ratings for the seventh consecutive year.
Parco's mid-country refinery achieved 87 percent capacity utilisation during the year, which was the highest since it started commercial production in December 2000. Increase in the capacity utilisation was the result of increase in the demand of petroleum products in the country. The decanting facility built by the company at its Korangi station during last year enabled it to receive 375,000 tons local crude for processing at the refinery.
Total-Parco Pakistan Limited, a joint venture with 'Total' of France in which Parco has 40 percent stake, added 24 additional retail outlets, raising total strength of its network to 69. Turnover of Parco's LPG and lubricants, which are marketed as 'Pearl Gas' and 'Pearl Lubes' also increased considerably.
The 780 km Karachi-Mahmood Kot white oil pipeline project is to shortly commence commercial operation. Ships have already started discharging diesel cargoes at its Port Qasim terminal.
The pipeline has a design capacity of 12 million tons per year. The US $480 million project, which is being implemented by a Parco subsidiary, Pak-Arab Pipeline Company Limited, is a joint venture in partnership with Shell, PSO and Caltex.
Parco has steadfastly pursued a strategy of modular growth on the strength of self-generated resources. While adding to the size and diversity of its business interests and the linkages it has established with the local and international oil industry, it has also created valuable and strategic petroleum infrastructure in the country.