engro fertilizers

Business achieved a historic milestone of highest ever urea production of 2,003 KT due to better plant efficiency and higher gas availability. Sales revenue witnessed an increase of 11% over the last year on the back of improved product availability due to enhanced production as well as higher fertilizer prices. The business recorded a PAT of PKR 16.9 billion – down by 3% from last year – decrease mainly attributed to one-off deferred tax impact of higher future corporate tax rates introduced through Finance Act, 2019.

revenue

(rs. in millions)

121,355

(2019)

engro polymer & chemicals

2019 proved to be an important year for the Polymer business. The business successfully initiated commercial production from its caustic flake plant, commenced export, announced Hydrogen Peroxide and other diversification and efficiency projects. Efforts on PVC expansion, VCM de-bottlenecking and Oxygen based VCM production projects are progressing well. The business core profitability remained in line with last year, despite higher gas prices and volume decline, however, PAT decreased as compared to last year due to higher financial cost and certain one-off benefits booked in 2018.

revenue

(rs. in millions)

37,837

(2019)

engro energy

Within our Energy vertical, the development of phase I of the Thar Block II 3.8 Mt per annum mine concluded on 03 June 2019. Thereafter,Commercial Operations Date (COD) for both mining and the 2x330MW Thar power plant was declared on 10 July 2019. From COD till the yearend, the mine supplied 2.28 million tons of coal to the power plant. Further, the mining project commenced construction of Phase II of the mine expansion and achieved Financial Close on December 31, 2019, which will enhance production of coal from the mine to 7.6 Mt per annum. During the year, the power plant achieved 87% availability with a load factor of 79%. Plant operations remained smooth since COD, and dispatched ~2,000 GwH to the national grid. The Qadirpur Power Plant continued to demonstrate excellence owing to the strategic operational and HR transformation and recalibration carried out at the plant during the year. The plant displayed a billable availability factor of 99.9% during 2019. However, it dispatched a total net electrical output of 1,097 GwH to the national grid demonstrating a load factor of 58.8% compared to 81.9% last year. The decrease in load factor was primarily due to lower merit order ranking and consequently lower dispatch given that newer plants were commissioned during the year. Circular debt remains a persistent problem in the domestic energy sector.

revenue

(rs. in millions)

50,039

(2019)

engro vopak

Witnessed a volumetric increase of 6% for chemicals and LPG handled over last year, which is mainly attributable to higher chemical imports. The business completed 22 years of safe operations without lost work injury and continued to maintain health, safety and quality standards.

revenue

(rs. in millions)

3,991

(2019)

elengy terminal

Handled 74 cargoes during the year. Elengy terminal delivered 216.6 bcf re-gasified LNG into the SSGC network. The availability factor remained at 97.4% for the year. The LNG terminal currently fulfills more than 12% of the country’s gas requirements. Since its commencement in March 2015, the terminal has handled over 17 million tons of LNG. Through the consistent supply of gas via LNG import, the fertilizer and CNG sectors as well as over 500 industrial units have been revived, whilst the country has saved nearly USD 3 billion to date due to replacement of import of more expensive furnace oil and diesel with LNG.

revenue

(rs. in millions)

12,713

(2019)

frieslandcampina engro

The Dairy business witnessed strong growth momentum on the back of strong volumetric sales in both Dairy and Ice Cream segments and reported a revenue of PKR 39 billion – up by 20% over last year. However, the profitability was significantly impacted by the sharp economic headwinds, particularly steep increase in commodity prices due to PKR depreciation, higher interest rates and one-off deferred tax charge due to higher future corporate taxes. The business has taken price increases across its portfolio in the last six months to offset these inflationary pressures. The business posted a post-tax loss of PKR 955 million for the year.

revenue

(rs. in millions)

38,857

(2019)

eximp agriproducts

Increased focus on the rice business continued in 2019 and the business closed the year in profit for the second time in a row. Rice exports also continued to grow and witnessed a volumetric increase of 22% over 2018. External quality audit by Bureau Veritas for quality recertification was successfully completed, maintaining ratings of ‘AA’. The Rice business has the highest number of quality certifications amongst rice players in Pakistan.

revenue

(rs. in millions)

3,659

(2019)