132,363
2021 revenue
(PKR in millions)
In 2021, Fertilizer business showed strong performance and recorded a revenue of PKR 132 billion compared to PKR 106 billion in 2020, whereas Profit After Tax stood at PKR 21.1 billion compared to PKR 18.1 billion last year, demonstrating a ~17% increase mainly on the back of higher urea offtakes and increase in phosphate prices.
Domestic Market witnessed strong agricultural sector performance in 2021. This translated into a historic milestone of highest ever urea sales of 2,295 KT in comparison with 2,057 KT in 2020, while phosphates sales stood at 366 KT compared to 465 KT last year.
On International front, urea prices increased to USD 957/T (landed equivalent PKR 10,891/bag) by the end of 2021, with the local Fertilizer Industry ensuring that farmers continue to benefit from lower domestic urea prices with a discount of 84% over international prices (PKR 1,768/bag at year end). DAP international and local prices have also witnessed a steep increase during the year, with international prices rising to USD 915/T by the end of 2021.
The presence of domestic urea Manufacturing Industry enabled import substitution to the tune of USD 3.5 billion, wherein Engro Fertilizer’s contribution stood at USD 1.3 billion, equating to 36%. Price differential with the International Market present the industry with an export opportunity which will generate incremental foreign exchange for the country.
70,022
2021 revenue
(PKR in millions)
The Engro Polymer & Chemicals announced commercial operations of the new PVC Plant in March 1st, 2021 June 25th, 2021, increasing the capacity by 100 KT to 295 KT per annum and commercial operations of 50 KT new VCM Debottleneck capacity on June 25, 2021, increasing capacity to 245 KT per annum.
The Polymer business recorded highest ever revenue of PKR 70 billion translating into a Profit After Tax of PKR 15.1 billion as compared to revenue of PKR 35 billion and Profit After Tax of PKR 5.7 billion last year. The business recorded its highest ever domestic sale of 207 KT, translating to a market share of 95%. The business also recorded its highest ever export sales of 19 KT.
International PVC prices averaged at USD 1,413 / MT during the year due to high demand along with supply disruptions such as longer than expected turnarounds in Asia, plant closures in the USA due to hurricanes, and higher freight costs as a result of supply chain constraints. However, supplies to the domestic PVC downstream market continued uninterrupted due to Engro Polymer’s steady production.
The Company continued its awareness and partnership with construction sector stakeholders through its “thinkPVC” outlet, demonstrating the versatility and superior physical properties of PVC downstream products with the aim to change the landscape of the construction sector in Pakistan. Through its enhanced capacity and domestic sales, the Company saved Pakistan USD 0.2 billion through import substitution and generated foreign exchange of USD 28 million through exports.
4,489
2021 revenue
(PKR in millions)
During the year, Engro Corporation has formed a dedicated platform for connectivity and Telecom Infrastructure-related initiatives by the name of Engro Connect (Pvt.) Limited (EConnect). EConnect is a wholly owned subsidiary of Engro and now holds complete ownership of Engro Enfrashare (Pvt.) Limited (Enfrashare), which is currently Pakistan’s largest independent telecom tower company.
Enfrashare continued to expand its national footprint and achieved a scale of 2,246 tower sites with a 1.10x tenancy ratio, catering to all four Mobile Network Operators (MNOs) in Pakistan. The Company deployed 79% of the new sites as an independent tower company, which led to an increase of 3x in revenue during the year in comparison with last year. The business has secured orders to reach a scale of 3,300+ sites by the end of 2022.
The telecom sector in Pakistan is registering an annual growth of 20% with the 3G/4G subscriber base expanding beyond 100 million. The business is well positioned to capture growth expected in the sector, driven by localization of smart phone assembly, resulting from policy-level interventions made by the Government of Pakistan. The growth potential in this business is further demonstrated by the co-location opportunities witnessed at Enfrashare within the last two years, where the highest tenancy ratio ranges between 1.25x to 1.34x.
52,094
2021 revenue
(PKR in millions)
FrieslandCampina Engro Pakistan demonstrated a topline growth of 18%, reporting a revenue of PKR 52 billion against PKR 44 billion last year. The gross margin improved to 16% versus last year’s 12% and the business registered a Profit After Tax of PKR 1,804 million versus PKR 177 million last year.
Higher market penetration by the business was driven by leveraging e-commerce channels, whereby the business entered into strategic partnerships with notable fintech companies to digitize the sales and distribution management at a national level. The business also improved reach and route to markets, increased marketing spend to enhance brand equity and increased market penetration.
The business continued to expand its consumer awareness and dairy development programs, which have been further supported by the restoration of zero-rated taxation on the dairy segment.
4,309
2021 revenue
(PKR in millions)
Engro Eximp Agriproducts continues its excellence in rice export business, getting both local and international recognition for its efforts. The Company received the Top Exporters Award during the year and maintained its ‘AA Rating’ for the 5th consecutive time by the British Retail Consortium. The business surpassed industry growth of 16% in the brown rice segment and recorded 21% growth versus last year.
As a key contributor to National Foreign Exchange reserves, the business continued its focus towards exports. During the year, the rice business generated revenue of USD 18.8 million through export of 24 KT rice versus ~28 KT last year. Given the supply chain constraints in the international market, the business pivoted its supply to the local market and increased sales by 39% to ~13 KT during the year.
87,525
2021 revenue
(PKR in millions)
Coal Mine: Mining operations continued smoothly, and the mine supplied 3.8 million tons of coal to Engro Powergen Thar during the year. The Phase II expansion of the mine to 7.6 million tons per annum is underway, with 71% of the overburden removed from the site. Phase III expansion of the mine to 12.2 million tons per annum was also approved during the year.
Thar Power Plant: Engro Powergen Thar Limited achieved the milestone of highest in-year collection of 97%, bringing the inception to date collections at par with coal based IPPs of despite only two years of operations. The plant also maintained its third position on the merit order list. During the year, the plant achieved an availability of 83% with a load factor of 80% and dispatched 4,225 GwH to the national grid.
Qadirpur Power Plant: During the year, the plant dispatched a Net Electrical Output of 851 GwH to the national grid, with a load factor of 46% compared to 30% last year due to higher offtake from the Power Purchaser. The business posted a PAT of PKR 1,594 million for the current period as compared to PKR 2,079 million for 2020. The Company received PKR 3.2 billion in January 2022 to settle 40% of the outstanding receivables, as a result of the Master Agreement with the Government of Pakistan.
17,390
2021 revenue
(PKR in millions)
During the year, Engro Elengy Terminal successfully completed Pakistan’s first-ever Dry-Docking activity of FSRU Exquisite at the Qatar dockyard. During the dry-docking period, FSRU Sequoia enabled gas supply continuity, ensuring national energy security. Consequently, the business contributed 15% to national gas supply during the year.
The LNG terminal handled 72 vessels, in line with last year, delivering 216.2 bcf re-gasified LNG in to the SSGC network with an availability factor of 96.5%, contributing 15% to national gas supply during the year.
Chemicals terminal throughput volumes normalized to 1,280 KT against 1,142 KT last year. LPG volumes declined, as Taftan Border reopened, and importers shifted to land routes reducing the marine-import market by ~50% during the year. Overall, profitability of both the LNG and chemical storage terminals remained healthy during 2021.
