KARACHI: Engro Fertilizers Limited announced a consolidated profit of Rs11.15 billion in the year ended December 31, 2017, up 20% compared to Rs9.28 billion in the same period of previous year, according to a company notice sent to the Pakistan Stock Exchange (PSX) on Thursday.
Earnings per share (EPS) increased to Rs8.36 in 2017 compared with an EPS of Rs6.98 in the previous year.
According to a report of Topline Securities, the results were above market expectations.
Along with the result, the company declared an interim cash dividend of Rs3 per share, which was in addition to the dividend already paid at Rs5.5 per share. This took the 2017 pay-out to Rs8.5 per share.
On Thursday, Engro Fertilizers’ share price closed at Rs69.72, up Rs1.07 with 9.5 million shares changing hands. The market closed at 43,679.87, declining 416.62 points, or 0.94%.
The company posted net sales of Rs77 billion, up 11% against Rs69.5 billion last year. Urea sales came in at 506,000 tons (including exports of 12,000 tons), down 20% year-on-year in the Oct-Dec 2017 quarter. However, prices were up 2% to Rs1,392 per bag.
On the flip side, diammonium phosphate (DAP) sales contracted 21% to 230,000 tons while prices were up 7% to Rs2,745 per bag.
Gross margins of the company grew by a considerable nine percentage points to 29% in the fourth quarter of 2017.
Administrative expenses surged 42.6% to Rs1.3 billion in 2017 while other income decreased from Rs8.1 billion in 2016 to Rs5.9 billion in 2017.
Published in The Express Tribune, February 9th, 2018.