Karachi, April 29, 2013: The Board of Directors of Engro Corporation Limited today announced the financial results for the first quarter ended, March 31, 2013.
Engro’s consolidated revenues surged by 36% to Rs. 31,301 million while net profit (attributable to the equity holders of the holding company) was Rs. 1,786 million as compared to a net loss of Rs. 649 million during the same period last year. The return to profitability is mainly attributable to the fertilizer business, where the transfer of Mari gas to the new urea plant helped the company post healthy results. The Company announced an EPS of Rs. 3.49 for the quarter ended March 31, 2013 as opposed to an LPS (loss per share ) of Rs. 1.27 during the same period last year.
Our Fertilizers business continued to experience 86% gas curtailment on the SNGPL network. However, the Company’s production during the quarter was 296 KT as compared to 255 KT during the same period last year mainly due to incremental efficiencies by diverting Mari gas to the Enven plant. Higher production along with lower availability of competitive imported urea increased EFert’s urea sales to 298 KT in 1Q 2013 from 77 KT in 1Q 2012 and improved its market share to 23% in 1Q 2013 from 8% in 2012. Resultantly, Engro Fertilizers posted a net profit of Rs. 646 million during the period ended March 31, 2013 vs. a loss of Rs. 1,420 million during the sameperiod last year.
Despite stable revenues, Engro Foods’ profitability was higher than 1Q 2012 by 34% due to lower costs of sales. The business closed the quarter with a profit of Rs. 653 million vs. a profit of Rs. 486 million in the corresponding period of 2012. The Company’s investments in the Halal Foods business in Canada, Al Safa, achieved sales revenue of Canadian Dollars 2.2 million during 1Q 2013 as compared to Canadian Dollars 2.5 million in the same period of last year.
Engro’s Rice business’s revenues increased to Rs. 1,218 million in 1Q 2013 from Rs. 161 million in 1Q 2012 and loss after tax reduced to Rs. 319 million in 1Q 2013 versus loss of Rs. 390 million in 1Q 2012.
Engro Polymers showed a robust performance in 1Q 2013 with the company producing its highest ever monthly VCM and PVC volumes in the month of March. Engro Polymers revenue grew by 17% in 1Q 2013 as compared to the same period last year. Growth was mainly attributable to higher PVC and Caustic prices versus last year. Engro Polymer posted a profit after tax of Rs. 263 million in 1Q 2013 as compared to a profit after tax of Rs. 414 million in the same period last year.Profit excluding the extraordinary item increased by about Rs. 100Mn as compared to the same period last year.
Engro Vopak registered a profit after tax of Rs. 271 million as compared to Rs. 340 million in 1Q 2012. Lower tariffs on paraxylene and acetic acid led to a dip in profitability.
Engro PowerGen Qadirpur’s power plant improved its operational performance in 1Q 2013 over the same period last year. The business posted a profit of Rs.592million versus a profit of Rs.561 million in the same period last year. The higher electrical generation increased its revenue by nearly 6%. This along with better operational efficiencies increased its profit after tax in 1Q 2013 as compared to 1Q 2012.
Pursuant to the decisions taken at the Thar Coal Energy Board meeting, the Economic Coordination Committee of the Cabinet (ECC) approved Sovereign Guarantee for financing the debt portion of Thar Block II mining project amounting to USD 700 million.
SECMC is actively pursuing the Coal Off-take Agreement with GENCO for its envisaged conversion of HSFO based Jamshoro power plants to blended coal as well as a new 600 MW power plant at Jamshoro. ADB / GENCO have initiated the feasibility study for the new power plant which would be based on blended Coal (combination of imported and Thar coal) as per CCI decision.
Engro Corporation, through its subsidiary ELENGY submitted a bid to setup an integrated LNG terminal for supply of 400 mmcfd of RLNG. However, the first bid was cancelled due to some short comings on the part of other bidders; consequently, the subsidiary company submitted its second bid to SSGC. However, the Supreme Court has taken a suo moto action on the bidding process and served notices to all bidders. It has also stayed the award of the LNG contract until the final decision of the case.
For the remaining year, the Company expects to consolidate performance across the subsidiaries and continue working with stakeholders to pursue growth and value creation across the board.