Karachi – August 20th, 2019: Pakistan’s premier conglomerate, Engro Corporation (PSX: ENGRO) announced its financial results for the first half ended June 30th, 2019.
Consolidated revenue grew by 20% in comparison to the prior period, driven by higher Urea sales in the Fertilizer business. The Company posted a consolidated profit after tax (PAT) of PKR 11,482 million compared to PKR 11,055 million for the prior period ended 30th June 2018. Profit attributable to the owners was recorded at PKR 6,876 million compared to PKR 6,091 million for the similar period last year. Increase is primarily attributed to higher earnings on ECorp surplus funds.
On a standalone basis, the Company posted a profit after tax of PKR 5,163 million against
PKR 3,773 million for the similar period last year, translating into an EPS of PKR 8.96 per share. Engro also highlighted that the recently announced investment in telecom infrastructure and feasibility study to set up the polypropylene facility in Pakistan were on track. The Company announced an interim cash dividend of PKR 8.00 per share for the second quarter. This is in addition to PKR 7.00 per share announced in the first quarter, bringing cumulative payout to PKR 15.00 per share.
10 July 2019 was a historic day for Engro, as both Sindh Engro Coal Mining Company Limited (SECMC) and Engro Powergen Thar (Private) Limited, declared Commercial Operations Date (COD) of the Thar Coal Project. With this accomplishment, Engro is using indigenous resources to help alleviate the energy crisis that Pakistan faces and has, once again, proven its ability to deliver on mega projects that enable development for the people of this nation.
Fertilizer business revenues grew by 23% whilst PAT for the current period remained constant at PKR 7,184 million. Higher urea sales were offset by higher financial charges and one-off impact arising from a change in the corporate tax rate announced in the fiscal budget. Disbursement of subsidy and amicable settlement of GIDC continue to be the key focus areas for the fertilizer business.
Polymer business recorded a revenue growth of 9% over a similar period last year posting a profit-after-tax of PKR 1,544 million. Current year performance can be attributed to healthy international
PVC-Ethylene margins and improved domestic caustic market dynamics.
Within Engro’s energy assets, the Qadirpur plant performed as per our expectations with a Net Electrical Output of 661 GwH to the National Grid. Receivables from power purchaser remained high and are becoming a continuous challenge for the business and the power sector in general and needs urgent attention from the relevant authorities.
Terminals businesses remained on track with steady contributions to ECorp profitability.