KARACHI, Feb 15: Two heavyweights, the Muslim Commercial Bank (MCB) and Pakistan Oilfields Limited (POL), announced financial results on Tuesday.

The first was almost in line with what the market thought would be, but the oil exploration company had a little surprise in its bag.

In the days running up to the results, the stock price in MCB had shown a lacklustre performance and almost all the market knew why? The bank would ask shareholders for cash in right.

The MCB Board's decision in its meeting on Monday after the trading time and announced on Tuesday, did include a right issue: 15 per cent at premium of Rs15 from the par value of Rs10. The bank skipped a cash dividend but bonus at 10 per cent was declared.

After tax profit was reported at Rs2.5 billion, which translated into earnings per share (EPS) at Rs7.53 for the year ended December 31, 2004. Taxed profit reflected 13.4 per cent increase from Rs2.2 billion last year and EPS of 6.61 (after accounting for 10 per cent bonus issue of FY'03).

MCB posted net interest income at Rs7.29 billion, which was down 2 per cent from the earlier year. Provisions for non-performing loans were significantly lower, which enabled the bank to post higher interest income after provisions.

The non-interest income declined, but fee-based income rose significantly which more than offset the reduction in gain on investments. Operating profit increased to Rs3.69 billion, from Rs3.62 billion.

Total expenditures were reduced to Rs9.7 billion, from Rs11.3 billion last year. The bank also booked a one-time "exceptional item", being compensation on delayed tax refund amounting to Rs513 million. The market price of the share in MCB shed 25 paisa on Tuesday to end at Rs75, from the opening price of Rs75.25 with 28 million shares traded.

Pakistan Oilfields Limited (POL) posted after tax profit of Rs1.40bn for the six months ended December 31, 2004, which worked out to an earnings per share (EPS) of Rs10.88, slightly higher than some analysts' expectations that ranged between Rs10.1 to Rs10.6 per share.

The board did not declare and interim dividend, though much of the market was looking at interim cash pay out of 10-15 per cent. Analysts thought that the company was perhaps retaining cash for a bid in privatization of National Refinery Limited (NRL).

POL's taxed profit for the six months stood 12 per cent higher than the corresponding period of the previous year. The improvement in earnings was attributable to increase in crude prices during the period under review.

Arab light crude oil average prices had jumped 25 per cent during July-October but decreased by around 27 per cent during the two months, November-December and settled at $39 per barrel.

The company was in the throes of aggressive drilling exercise during the current year. The market price of POL stock gained Rs4.75 on Tuesday to close at Rs274.80 with trading noted in 22 million shares.