Engro Fertilizer announces Rs2.789 billion profit

Up 31% from Rs2.137b in the same quarter last year


Our Correspondent October 26, 2015
Up 31% from Rs2.137b in the same quarter last year. PHOTO: FILE

KARACHI: Engro Fertilizer reported a profit after tax (PAT) of Rs2.789 billion in the third quarter (Jul-Sep) of calendar year 2015, up 31% compared to Rs2.137 billion in the same quarter of calendar year 2014.

Earnings per share (EPS) remained Rs2.10 compared to an EPS of Rs1.63 in the same quarter last year.

It also announced a dividend of Rs1.5 per share for the three-month period.



“Engro Fertilizer’s quarterly results were in line with market consensus. However, despite this, the company stock closed 0.4% down,” Topline Securities said.

The decline in earnings emanates from a 18.6% quarter-on-quarter decline in urea offtake owing to an anticipation of a reduction in prices for the month of September and decline in other income by 59% resulting from payment of Gas Infrastructure Development Cess (GIDC), Summit Capital reported on Monday.

In the first nine months of calendar year 2015 (9MCY15), the company’s earnings clocked in at Rs9.9 billion or an EPS of Rs7.45, up 80% compared to Rs5.5 billion in the first nine months of calendar year 2014.

The earnings grew on the back of increased revenue due to dual plant operations and introduction of Di-ammonium Phosphate (DAP) trading business, and concessionary price operations at Enven plant boosting margins to 40%, up 3.4 percentage points (pps) year on year.

On yearly basis, PAT grew by 30% owing to availability of concessionary gas, decline in finance cost by 39% year-on-year on account of de-leveraging and a cut in KIBOR rate during the period, the report added.

Published in The Express Tribune, October 27th, 2015.

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COMMENTS (1)

Aslam | 8 years ago | Reply Engro's record breaking profits are all due to a sweet heart deal given by the government in the form of ridiculously cheap gas. All this was given in the name of providing farmers with cheap fertilizers, however as always the only beneficiary has been Engro who has been selling urea at or above world market rates. Why does the rest of Pakistan's industry have to pay gas rates which are 6-8 times higher than what Engro and Fatima Fertilizer pay? This is how crony capitalism works, where a few benefit at the expense of the majority.
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