KARACHI: Pakistan’s premier conglomerate, Engro Corporation announced its financial results for the first quarter ended March 31, 2018 at a meeting held at its headquarters in Karachi.
The company posted a consolidated profit-after-tax (PAT) of Rs 6,837million compared to Rs 4,219 million in the same period last year up by 62 percent, while profit after tax (PAT) attributable to the shareholders increased to Rs 4,194 million compared to Rs 2,841 million during comparative period last year. Engro Corporation concluded the first quarter of 2018 with revenue of Rs 33,525 million against Rs 22,499 million for the similar period last year depicting an increase of 49 percent primarily driven by improved performances from its Fertilizers and Petrochemicals businesses.
On a standalone basis, the Company posted a PAT of Rs 3,146 million against Rs 5,300 million for similar period last year, translating into an EPS of Rs 6.01 per share (higher PAT in the previous period was on account of one-off super dividend from Engro Foods). The company announced an interim cash dividend of Rs 5 per share for the quarter. Fertilizer business revenues grew by 81 percent whilst it’s PAT for the current quarter more than doubled as compared to comparative period - up by 138 percent - and stood at Rs 3,889 million. Higher profitability was led by increased urea sales volumes including exports as well as higher domestic prices on the back of reduced inventory levels.
The Engro Polymer and Chemicals business produced highest ever PVC during the quarter and recorded revenue growth of 28 percent over similar period last year. PAT for the current quarter was Rs 1,448 million against Rs 846 million for the comparative period. Primary drivers of profitability remained PVC domestic market growth, supportive PVC prices in the international market and improved Caustic margins.
Within Engro’s energy assets, the Qadirpur plant performed as per our expectations with a Net Electrical Output of 414GwH to the National Grid. EPQL’s receivables from power purchaser remained high due to circular debt. This is becoming a continuous challenge for the business and the power sector in general and needs urgent attention from the relevant authorities. Thar Coal Mining Project progress remained ahead of plan with approx. 82 M BCM of overburden (represents 73% of total project) having been removed by the quarter-end. Development on Thar Power Projects continued at a steady pace throughout the quarter. Engineering, Procurement and Construction progress is ahead of schedule and inspections of equipment at manufacturing facilities are progressing smoothly. The first electron from Thar Power will start generating power by the end of this year.
The LNG terminal handled 18 cargoes as compared to 16 cargoes during similar period last year. Chemicals terminal witnessed a volumetric decrease due to lower imports of products during the quarter. Engro Corporation will continue to explore investment opportunities across all sectors focusing on improving shareholder value by increasing and diversifying revenue and customer base, investment in new technology and efficiency enhancements.—PR