Engro Corporation’s profits triple during first-half of 2010
Engro Corporation’s net profit tripled in the first six months of 2010 driven by fertiliser and chemical storage (Vopak) subsidiaries, according to analysts.
The company reported a net profit of Rs3.2 billion for the six months ended June 30 compared with Rs1.02 billion during the same period a year earlier.
The fertiliser sector was the major player in the profitability of the company, said BMA Capital analyst Omar Rafiq.
The company also announced a first interim dividend of Rs2 per share in a statement sent to the Karachi Stock Exchange on Wednesday.
Net sales of the company surged 47 per cent to Rs33.7 billion during January to June 2010, against Rs22.9 billion during the same period last year.
Engro Fertiliser Limited, a subsidiary of the company, has already announced a profit of Rs2 billion for the first half of 2010.
Engro Corporation’s subsidiaries include Engro Fertiliser, Engro Vopak, Engro Polymer, Engro Foods among others.
The food and chemical (Polymer) ventures have continued to run into losses, said JS Global Capital analyst Mustafa Bilwani in the company research report.
Engro Vopak is expected to book profits of Rs551 million, up 41 per cent on yearly basis in the first half of 2010, said Bilwani.
Higher advertisement and administrative expenses on the ice cream line are expected to keep Engro Foods in losses despite the dairy segment turning to profits, added Bilwani.
Engro Foods is expected to post a loss of Rs80 million in the first half of 2010 compared with a loss of Rs292 million in the first half of 2009.
Moreover, delays in the commercial operations date of the VCM plant at Engro Polymer and Chemicals Limited (EPCL) kept EPCL earnings in the red.
As a result, EPCL reported a consolidated loss of Rs295 million compared with a profit of Rs13 million in the corresponding period last year.
Published in The Express Tribune, July 29th, 2010.
The company reported a net profit of Rs3.2 billion for the six months ended June 30 compared with Rs1.02 billion during the same period a year earlier.
The fertiliser sector was the major player in the profitability of the company, said BMA Capital analyst Omar Rafiq.
The company also announced a first interim dividend of Rs2 per share in a statement sent to the Karachi Stock Exchange on Wednesday.
Net sales of the company surged 47 per cent to Rs33.7 billion during January to June 2010, against Rs22.9 billion during the same period last year.
Engro Fertiliser Limited, a subsidiary of the company, has already announced a profit of Rs2 billion for the first half of 2010.
Engro Corporation’s subsidiaries include Engro Fertiliser, Engro Vopak, Engro Polymer, Engro Foods among others.
The food and chemical (Polymer) ventures have continued to run into losses, said JS Global Capital analyst Mustafa Bilwani in the company research report.
Engro Vopak is expected to book profits of Rs551 million, up 41 per cent on yearly basis in the first half of 2010, said Bilwani.
Higher advertisement and administrative expenses on the ice cream line are expected to keep Engro Foods in losses despite the dairy segment turning to profits, added Bilwani.
Engro Foods is expected to post a loss of Rs80 million in the first half of 2010 compared with a loss of Rs292 million in the first half of 2009.
Moreover, delays in the commercial operations date of the VCM plant at Engro Polymer and Chemicals Limited (EPCL) kept EPCL earnings in the red.
As a result, EPCL reported a consolidated loss of Rs295 million compared with a profit of Rs13 million in the corresponding period last year.
Published in The Express Tribune, July 29th, 2010.