The consolidated profit after tax of Engro Corporation Limited (formerly Engro Chemical Pakistan Limited) has increased to Rs 4.058 billion in the nine month period ended September 30, 2010 as compared to Rs 2.649 billion earned in the corresponding period in 2009.
The earning per share increased to Rs 13.41 in the period under review against Rs 8.93 in the same period last year. The board of directors of Engro Corporation in its meeting held on Thursday recommended an interim cash dividend at Rs 2 per share ie 20 percent. The consolidated revenue of Engro Corporation increased by 32 percent to Rs 53.6 billion for the nine months period ended September 30, 2010 as compared to Rs 40.6 billion in the same period last year.
The net profit (attributable to equity holders of the holding company) increased to Rs 4.393 billion in this period against Rs 2.705 billion recorded in the same period a year back. "The increase in revenue is mainly driven by dairy segment sales growth and energy sales while increase in profit is attributable mainly to better phosphate margins, higher urea production and Qadirpur power plant operations," the company in its review for the shareholders said.
Business Review Fertilisers: Total urea market demand for the nine months ended September 30, 2010 was 4.2 million tons, an 11 percent decrease over the same period last year, primarily due to the unprecedented floods which reduced demand in the third quarter.
The Engro urea plant produced 726,000 tons during the nine months ended September 30, 2010, a 5 percent increase over the 689,000 tons produced during the same period last year. The gas curtailment impact was more than offset by a record production in the first half as well as no planned turnaround during the year. Engro Urea sales were 645,000 tons for the period, down by 4 percent as compared to sales for the same period last year, however, Engro's market share increased to 15 percent versus 14 percent last year. The sale of company manufactured blended fertilisers (Zarkhez and Engro NP) was 65,800 tons against 72,500 tons during the same period in 2009.
The net profit for the nine months ended September 30, 2010 was Rs 2,879 million, which includes a one-time gain on sale of Port Qasim land of Rs 299 million in the first half of the year and a tax reversal of Rs 463 million in the third quarter.
Phosphates industry sales declined to 0.7 million tons as compared to 1.175 million tons in the first nine months of 2009. Engro EXIMP's sales were 196,000 tons as compared to 233,000 tons in the corresponding period of 2009. The Company imported 324,000 tons of DAP and Zorawar in the first nine months of the year. Net profit for the Company was Rs 989 million against a profit of Rs 961 million in the same period last year.
Energy and Power Engro Energy Limited's Qadirpur Plant has generated 766,099 MWh following commencement on March 27, 2010 up till September 30, 2010 while plant availability has been 89 percent during the period after taking into account scheduled outage allowance. Engro Energy Limited declared a net profit of Rs 377 million for the nine months ended September 30, 2010. This includes a loss on foreign currency loan amounting to Rs 338 million which will be reimbursed by Wapda going forward. Excluding this loss, the profit would have been Rs 715 million.
Sindh Engro Coal Mining Company Limited (SECMC) has completed work on the Bankable Feasibility Study (BFS) as per the target deadline of August 31, 2010. The BFS has been developed on international standards, by a team of renowned local and international consultants meeting international standards. The BFS has confirmed technical, social and environmental viability of the open cast lignite-mining project in Block 2 of the Thar Coal field. The economic viability will be determined once the government achieves closure on various critical infrastructure.
Foods Engro Foods' total turnover for the nine months ended September 30, 2010 was Rs 15 billion, as compared to Rs 10.6 billion for the corresponding period last year, an increase of 42 percent. Dairy segment achieved a sales growth of 42 percent against corresponding period last year, delivering a profit of Rs 433 million against a loss of Rs 25 million in the same period last year. Turnover for 'Omore' increased by 125 percent to Rs 1,322 million in the nine months ended September 30, 2010, with a net loss of Rs 291 million as compared to a loss of Rs 304 million for the same period last year; this was due to continued investment in brand and infrastructure, the company said.
The net profit for the nine months ended September 30, 2010 for all business segments was Rs 35 million as compared to a loss of Rs 391 million for the same period last year.
Petrochemicals Vinyl Chloride Monomer (VCM) plant operations improved considerably during the third quarter of the year, the plant achieved commercial production in September 2010, with 36 KT produced in the first nine months of the year. Poly Vinyl Chloride (PVC) production for the nine months ended September 30, 2010 were 80 KT as compared to 91 KT during the same period last year. Company's PVC sales for the first nine months of the year were 74 KT as compared to 93 KT for the same period in 2009. Caustic soda production during the first nine months of the year was 67 KT. With domestic demand for caustic soda remaining strong, the company sold 58 KT in this period. In addition to EDC used in the production of VCM, a surplus of 33 KT of EDC was exported in the period. The company incurred a loss of Rs 762 million during the first nine months of 2010 as compared to a loss of Rs 19 million in the same period of 2009 primarily due to the VCM plant being non-operational for most of the period.
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