ICI’s profitability takes a hit due to gas outages

Profits down nearly 49% to Rs893m as polyester, soda ash business hurt.

KARACHI:

ICI Pakistan has announced its financial results for the year ended December 31, 2012. The company has posted a net profit of Rs892.67 million, almost 49% lower than the Rs1.75 billion announced for the preceding year. It has also announced Rs2 per share dividend, subject to the approval of shareholders at the upcoming Annual General Meeting.

The company’s net sales declined 2% to Rs34.68 billion during the year, due to what the company says were low volumes and prices for its polyester business, where volumes were dampened due to the energy crisis, thus affecting downstream demand.

The company says its operating results were down 37% due to lower PSF volumes and a significant reduction in its margins over feedstock prices. Its polyester and soda ash businesses were particularly hurt by extended gas outages, resulting in extra expenses on alternate fuels – which the company says amounted to nearly Rs407 million.

Along with its result statement, the company has said it has approved a project to install one coal-fired boiler and two coal-fired heaters in Sheikhupura for the company’s polyester business at a cost of Rs1.1 billion. The move will help the company regain profitability in the businesses most hurt by gas outages.

Published in The Express Tribune, February 22^nd, 2013.

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