Engro Fertiliser posts Rs2.01b net profit

KARACHI: Engro Fertiliser Limited has announced profit after tax of Rs2,012 million for six months ended June 30, 2010.

According to information sent to the Karachi Stock Exchange on Monday, the fertiliser company posted earnings per share (EPS) of Rs6.75 as compared to an EPS of Rs4.16 in the previous six months.

The company also pointed out that an expansion project for the urea plant at Daharki will be completed in the current quarter.

Upon completion, the company’s urea plant is expected to cut down on demand for imports of fertiliser, significantly. But if gas curtailment continues, local production of fertilisers may be stunted in coming months.

Chairman Engro Corporation Asad Umar explained that “urea sales were 492,000 tons, up by 17 per cent as compared to 419,000 tons sold in the same period last year.” Higher sales have been attributed to better plant production and efficiency.

Engro fertiliser plant recorded its best ever first half production of 504,000 tons. The company’s share of the total fertiliser market has increased from 14 per cent to 16 per cent over the same period.

The statement also highlighted that domestically produced fertiliser is substantially cheaper than imports, adding that “the fertiliser industry provided benefit of about Rs28 billion to farmers during the first half of 2010.”

Engro Fertiliser is a subsidiary of Engro Corporation and is not independently listed on the stock exchange.

Published in The Express Tribune, July 27^th, 2010.