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    February 19, 2016

    Engro Corporation announces PAT of PKR 13,784Mn

    Karachi, February 19, 2016: Engro Corporation today announced its year end results showcasing a strong performance overall in its businesses. However, on a consolidated basis the stellar performance of fertilizer, the commencement of commercial activities at the LNG Terminal and the signing of major financial agreements for SECMC were kept in check by a challenging business environment in its rice and polymer businesses.

    Overall, Engro Corporation had another great year running with record revenue of PKR 184,264 million vs. PKR 175,958 million in 2014 on a consolidated basis, achieving a 4.7% YoY top line growth. Despite the challenges posed in some of its key businesses, the Company posted a consolidated profit-after-tax (attributable to owners) of PKR 13,784 million as opposed to PKR 7,007 million during 2014. Profitability was driven by Engro Fertilizers which had another unprecedented year on the back of 2-plant operations owing to continued gas supply throughout the year. Engro Corporation successfully restructured its fertilizer trading and rice businesses as EXIMP was acquired by Engro Fertilizers and Engro EXIMP Agriproducts was acquired by Engro Corporation. However, the profitability was partially offset by losses in rice business primarily due to non-cash impairment loss of PKR 3,384 million booked against Property, Plant & Equipment and Stores & Spares. Also, the Petrochemicals business, in line with the bearish global commodity prices, suffered losses due to declining Ethylene-PVC price delta. The Company also announced a final cash dividend of PKR 7/share for the year ended December 31, 2015

    A summary of company-wise financials:

    Rs. Million 

    2015

    2014

    Company

    Revenue

    Profit/(Loss) After Tax

    Revenue

    Profit After Tax

    Engro Corp Stand-alone

    8,287

    11,369

    2,111

    2,481

    Engro Fertilizers

    88,033

    14,819

    61,425

    8,208

    Engro Polymers

    22,264

    (644)

    23,819

    (1,109)

    Engro Foods

    49,834

    3,162

    42,602

    889

    Engro PowerGen Qadirpur

    13,354

    1,797

    12,041

    2,021

    Engro Corp Consolidated*

    184,264

    13,784

    175,958

    7,007

    * Excluding Non-controlling interest

    Engro Powergen, a wholly owned subsidiary of Engro Corporation, which owns and operates Engro Powergen Qadirpur Limited (EPQL) and which entered into a joint venture with the Government of Sindh to form the Sindh Engro Coal Mining Company completed overburden removal of 3.7 million Banked Cubic Metre (BCM) under SECMC as well as signing major financing agreements for the project in December’15. Financial close of the project is expected within the year of 2016.

    Engro Corporation’s LNG terminal was built in record time and began operations on March 29th, 2015 and initiated delivery of re-gasified LNG to SSGCL. During the year, the terminal handled 17 cargoes and 1,030,557 MT of LNG.

    Having celebrated 50 years of its journey in 2015, Engro Corporation’s long-term rating was upgraded to AA while maintaining a short-term rating of A1+. Engro Corporation remains committed to its mission of helping solve the country’s energy crisis by developing Pakistan’s largest hydrocarbon reserves – Thar coal, through integrated mining and power generation project.