press releases
    February 26, 2024

    Engro Corporation FY 2023 Results

    Karachi, February 26, 2024: Pakistan’s premier conglomerate, Engro Corporation Limited (PSX: ENGRO) announced its financial results for the year ended December 31, 2023.

    Overview of Financial Performance

    During 2023, Engro Corporation posted a standalone PAT of PKR 18 billion against PKR 21 billion in 2022, translating into an EPS of PKR 32.26 versus an EPS of PKR 36.79. The decline in profitability by 17% is primarily owing to additional super tax on dividends and lower interest income due to higher dividends declared during the year, which has been partially offset by lower expense incurred on business development.

    On a consolidated basis, Engro Corporation’s revenue grew by 35% to PKR 482 billion in 2023 against PKR 356 billion in 2022. Consolidated PAT before accounting impact due to remeasurement of thermal energy assets stood at PKR 66 billion (PAT attributable to shareholders: PKR 34 billion) compared to PKR 46 billion (PAT attributable to shareholders: PKR 24 billion) in 2022 recording an EPS of PKR 63.01 compared to PKR 42.23 in 2022. Major variance is attributable to higher urea sales, efficient plant operations, higher earnings from dollar-denominated businesses, and efficiencies derived through cost optimization.

    However, after incorporating the accounting impact due to remeasurement of thermal energy assets, the consolidated PAT stood at PKR 36 billion (PAT attributable to shareholders: PKR 21 billion) with an EPS of PKR 38.60 in 2023. Further details on accounting impact of thermal assets are covered in the next section.

    Engro Corporation announced a final cash dividend of PKR 2/- per share for the year. This is in addition to the PKR 46/- per share dividend announced during the year, bringing the cumulative payout to PKR 48/- per share.

    Proposed Divestment of Thermal Energy Assets

    Referring to the various disclosures made at PSX by the Company regarding the ongoing discussions with Liberty Mills Limited along with other parties acting in concert, the Company is now evaluating to execute the proposed divestment of the Company’s thermal energy assets comprising of shareholding in Engro Powergen Qadirpur Limited, Engro Powergen Thar (Pvt.) Limited and Sindh Engro Coal Mining Company Limited held via Engro Energy Limited through a sale of shares process.

    SECP vide SRO 986 (I)/2019 dated September 2, 2019, has granted specific exemptions to Independent Power Producers (IPPs) from applicability of IFRS 9, IFRS 16 and IAS 21. As a result of this, debt component recovered from CPPA-G as part of tariff approved by NEPRA is recorded as revenue in the Profit or Loss Statement over the life of the loan. However, the corresponding depreciation expense related to the IPP is recorded over the term of the Power Purchase Agreement (PPA). The term of the loan being shorter than the term of the PPA results in higher Net Assets in the Consolidated Financial Statements of the Group.

    In accordance with the requirements of IAS 36, the Company has carried out an assessment of the recoverable amount of the thermal energy assets for the purpose of Standalone and Consolidated Financial Statements.

    Due to the specific accounting treatment for IPPs, as mentioned above, the Net Assets of thermal energy assets in the Consolidated Financial Statements of the Group are higher than their recoverable amounts. Accordingly, an accounting impact of PKR 30 billion (Owners’ Share: PKR 13 billion) has been recognized in the Consolidated Financial Statements for the year ended December 31, 2023.

    In case of Standalone Financial Statements of the Company for the year ended December 31, 2023, no impact has been recognized as the recoverable amount of thermal energy assets is significantly higher than their carrying amount.

    Portfolio Performance Review


    Agriculture sector of Pakistan revived in 2023 after being adversely affected by floods in the latter half of 2022. Promising support prices and favorable weather increased the area under cultivation and improved yields of major crops. This translated into a historic milestone of highest ever urea sales of 2,327 KT for Engro Fertilizers in comparison to 1,935 KT in 2022 resulting in a market share of 35% vs 29% in 2022. Phosphates sales stood at 365 KT versus 333 KT during last year.

    The Fertilizer business showed strong performance and recorded revenue of PKR 224 billion versus 157 billion in 2022. The business reported Profit After Tax of PKR 26 billion versus PKR 16 billion last year. This increase reflects efficiency through cost optimization, increased production and long-term reliability projects executed during 2022. The business enabled import substitution to the tune of USD 0.8 billion in 2023.


    The domestic PVC market in Pakistan contracted by 9% owing to high inflation, slow down in construction activity, low government spending on infrastructure development and geopolitical turbulence. Despite these headwinds, Engro Polymer and Chemicals Limited was able to sustain an 89% market share by ensuring product availability and implementing various incentives to boost market confidence.

    The business recorded domestic sales of 199 KT, versus 231 KT last year, enabling import substitution of USD 91 million. As a mitigant to lower domestic demand, business focused on export opportunities and achieved the highest ever export volumes of 44 KT, including caustic soda exports of 22 KT, generating foreign exchange of USD 26 million for the period.

    The Polymer business recorded a revenue of PKR 81 billion compared to PKR 82 billion last year. The PAT of the business stood at PKR 9 billion against PKR 12 billion last year, mainly attributable to the commodity cycle reversal, lower domestic demand and imposition of Super Tax.

    Telecommunication Infrastructure

    Engro Enfrashare (Pvt.) Limited continued to expand its national tower footprint and achieved a scale of 3,952 tower sites with a 1.21x tenancy ratio during 2023 versus 3,329 tower sites with 1.17x tenancy ratio in 2022, catering to all four major Mobile Network Operators (MNOs) of Pakistan. Furthermore, the business demonstrated its growth potential through colocation opportunities observed during the year, boasting a total of 260 colocation tenants by December 2023, capturing a market share of 64% of the colocations deployed by ITCs.

    Despite strong operational performance, the bottom line of the business was impacted in 2023 by the unprecedented rise in interest rates. The business is evaluating various options to mitigate this risk by reassessing its capital structure and hedging interest rates.

    Energy & Power

    Mining operations continued smoothly, ensured 100% supply of coal to three Independent Power Producers (IPPs); Engro Powergen Thar, Thar Energy and ThalNova Power. Following the successful commissioning of the mine expansion to 7.6 million tons per annum (MTPA), in anticipation of the potential surge in energy demand, the Management has committed to initiate Phase III of the expansion to enhance capacity to 11.4 MTPA. Furthermore, The Government of Sindh has provided approval on the implementation agreement to expand the mine to 16.4 MTPA.

    Engro Powergen Thar (Pvt.) Limited achieved 82% availability during the year and dispatched 3,611 GWH to the national grid as compared to 3,690 GWH last year. Lower plant availability is mainly due to achieving the first major Type A maintenance to ensure reliability and efficiency of the plant operations.

    Our Qadirpur Power Plant achieved 100% availability through ensuring efficient plant operations and dispatched a Net Electrical Output of 870 GWH to the national grid, with a load factor of 46%. The business posted a PAT of PKR 2.6 billion for the year, as compared to PKR 1.5 billion last year, mainly due to efficient plant operations and higher interest income.


    Engro Elengy Terminal (Pvt) Limited handled 73 vessels during 2023, delivering 215 bcf re-gasified LNG into the SSGC network with an availability factor of 97.1%. The Terminal contributed 13% – 15% towards Pakistan’s total gas supply during the year.

    Engro Vopak Terminal recorded chemical throughput of 952 KT, against 1,331 KT last year. This was primarily influenced by disruption in the operations of key customers (Lotte and FFBL) owing to import restrictions and gas curtailment which was partially offset by a notable 64% increase in LPG marine imports compared to last year (attributed to the acquisition of new customers).

    Foods & Rice

    FrieslandCampina Engro Pakistan (FCEPL) maintained its growth momentum, achieving a record-breaking topline of PKR 100 billion, marking a remarkable 36% increase compared to last year despite navigating a challenging macroeconomic landscape and intense competition. The surge in revenue was propelled by volume growth, favorable pricing dynamics, and the expansion of our retail presence. Our flagship brand, Olper’s, played a pivotal role in driving this growth, solidifying its market leadership position through consistent investments in brand building and trade activities.

    However, FCEPL saw a decline in Profit after Tax to PKR 1.5 billion from PKR 2.5 billion last year. This decrease is attributed primarily to a substantial rise in finance costs, with interest rates nearly doubling over the year.

    Engro Eximp Agriproducts generated a revenue of USD 9.4 million through exports of 6.9 KT rice versus 37 KT last year, alongside domestic sales of 6.1 KT due to reduced procurement during the season.

    Engro Eximp FZE

    Engro Eximp FZE, Company’s international trading arm, initiated commercial activity in UAE in 2022 with a vision to consolidate the international trading activities under one roof. It achieved a turnover of approximately USD 400 million including third party contracts.


    Awards & Recognitions

    In recognition of Engro Corporation’s impact across its value chains, the Company secured various awards and accolades from prestigious global and local bodies during the year 2023. For the fifth year in a row, Engro Corporation was awarded Most Outstanding Company in Pakistan “Industrials Sector” and Most Outstanding Company in Pakistan “Small / Mid-Caps Sector” at Asiamoney’s Outstanding Companies Poll 2023. For the fourth consecutive year, Engro Corporation was recognized at the PSX Top 25 Companies Awards for its strong corporate governance, business performance, ESG-related initiatives and regulatory compliance, among other considerations.

    Engro Corporation secured the runners-up position for ‘Most Preferred Employer’ at the Best Place to Work In Pakistan Awards 2023, organized by the Pakistan Society for Human Resource Management (PSHRM). This award reflects the Company’s unwavering commitment to fostering an inclusive, safe, and excellent workplace environment for our valued employees.

    Sustainability remains a key driver at Engro Corporation, and the Company’s efforts helped it secure the inaugural Best for ESG in Pakistan award at Asiamoney Outstanding Companies Poll Awards 2023, along with the 2nd position in the “National Enterprises” category at the Business Sustainability Awards 2023 by United Nations Global Compact (UNGC) Pakistan. The awards signify Engro Corporation’s continued commitment towards UNGC principles in governance, human rights, labour rights, environment, and anti-corruption.

    For pioneering innovation and advancing technology within our industry, Engro Corporation was also a proud recipient of the E-Commerce Manufacturing Excellence Award at Asian Technology Excellence Awards 2023.

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