Engro Corporation's Revenues Up By 49% In Q1, 2018

Engro Corporation announced on Monday its financial results for the first quarter ended March 31, 2018 as the company's revenue increased to Rs 33,525 million compared to Rs 22,499 million for the similar period last year depicting an increase of 49 percent primarily driven by improved performances from its Fertilizers and Petrochemicals businesses

ISLAMABAD, (UrduPoint / Pakistan Point News - 23rd Apr, 2018 ) :Engro Corporation announced on Monday its financial results for the first quarter ended March 31, 2018 as the company's revenue increased to Rs 33,525 million compared to Rs 22,499 million for the similar period last year depicting an increase of 49 percent primarily driven by improved performances from its Fertilizers and Petrochemicals businesses. Engro also posted a consolidated profit-after-tax (PAT) of Rs 6,837 million compared to Rs 4,219 million up by 62 percent, while profit after tax attributable to the shareholders increased to Rs 4,194 million from Rs 2,841 million during comparative period last year, says a statement received here. On a standalone basis, the Company posted a profit after tax (PAT) of Rs 3,146 million against Rs 5,300 million for similar period last year, translating into an EPS of Rs 6.01 per share (higher profit after tax in the previous period was on account of one-off super dividend from Engro Foods).

The company announced an interim cash dividend of Rs 5 per share for the quarter. Fertilizer business revenues grew by 81 percent whilst its PAT for the current quarter more than doubled as compared to comparative period - up by 138 percent - and stood at Rs 3,889 million.

Higher profitability was led by increased urea sales volumes including exports as well as higher domestic prices on the back of reduced inventory levels. The Engro Polymer and Chemicals business produced highest ever PVC during the quarter and recorded revenue growth of 28% over similar period last year.

PAT for the current quarter was Rs 1,448 million against Rs 846 million for the comparative period.

Primary drivers of profitability remained PVC domestic market growth, supportive PVC prices in the international market and improved Caustic margins. Within Engro's energy assets, the Qadirpur plant performed as per our expectations with a Net Electrical Output of 414GwH to the National Grid.

EPQL's receivables from power purchaser remained high due to circular debt. This is becoming a continuous challenge for the business and the power sector in general and needs urgent attention from the relevant authorities. Thar Coal Mining Project progress remained ahead of plan with approx.

82 M BCM of overburden (represents 73% of total project) having been removed by the quarter-end. Development on Thar Power Projects continued at a steady pace throughout the quarter.

Engineering, Procurement and Construction progress is ahead of schedule and inspections of equipment at manufacturing facilities are progressing smoothly. The first electron from Thar Power will start generating power by the end of this year. The LNG terminal handled 18 cargoes as compared to 16 cargoes during similar period last year.

Chemicals terminal witnessed a volumetric decrease due to lower imports of products during the quarter. Engro Corporation will continue to explore investment opportunities across all sectors focusing on improving shareholder value by increasing and diversifying revenue and customer base, investment in new technology and efficiency enhancements.