Engro Corporation announces profit after tax of Rs 13,784million

Islamabad, February 19, 2016 (PPI-OT): Engro Corporation today announced its year end results showcasing a strong performance overall in its businesses. However, on a consolidated basis the stellar performance of fertilizer, the commencement of commercial activities at the LNG Terminal and the signing of major financial agreements for SECMC were kept in check by a challenging business environment in its rice and polymer businesses.

Overall, Engro Corporation had another great year running with record revenue of PKR 184,264 million vs. PKR 175,958 million in 2014 on a consolidated basis, achieving a 4.7% YoY top line growth. Despite the challenges posed in some of its key businesses, the Company posted a consolidated profit-after-tax (attributable to owners) of PKR 13,784 million as opposed to PKR 7,007 million during 2014.

Profitability was driven by Engro Fertilizers which had another unprecedented year on the back of 2-plant operations owing to continued gas supply throughout the year. Engro Corporation successfully restructured its fertilizer trading and rice businesses as EXIMP was acquired by Engro Fertilizers and Engro EXIMP Agri products was acquired by Engro Corporation.

However, the profitability was partially offset by losses in rice business primarily due to non-cash impairment loss of PKR 3,384 million booked against Property, Plant and Equipment and Stores and Spares. Also, the Petrochemicals business, in line with the bearish global commodity prices, suffered losses due to declining Ethylene-PVC price delta. The Company also announced a final cash dividend of PKR 7/share for the year ended December 31, 2015.

A summary of company-wise financials:

      Rs. Million                                  2015                              2014
        Company                          Revenue       Profit/(Loss)       Revenue       Profit After Tax
                                                         After Tax

Engro Corp Stand-alone                     8,287           11,369            2,111             2,481
Engro Fertilizers                         88,033           14,819           61,425             8,208
Engro Polymers                            22,264            (644)           23,819           (1,109)
Engro Foods                               49,834            3,162           42,602               889
EngroPowerGenQadirpur                     13,354            1,797           12,041             2,021
Engro Corp Consolidated*                 184,264           13,784          175,958             7,007
* Excluding Non-controlling interest

EngroPowergen, a wholly owned subsidiary of Engro Corporation, which owns and operates EngroPowergenQadirpur Limited (EPQL) and which entered into a joint venture with the Government of Sindh to form the Sindh Engro Coal Mining Company completed overburden removal of 3.7 million Banked Cubic Metre (BCM) under SECMC as well as signing major financing agreements for the project in December’ 15. Financial close of the project is expected within the year of 2016.

Engro Corporation’s LNG terminal was built in record time and began operations on March 29th, 2015 and initiated delivery of re-gasified LNG to SSGCL. During the year, the terminal handled 17 cargoes and 1,030,557 MT of LNG.

Having celebrated 50 years of its journey in 2015, Engro Corporation’s long-term rating was upgraded to AA while maintaining a short-term rating of A1+. Engro Corporation remains committed to its mission of helping solve the country’s energy crisis by developing Pakistan’s largest hydrocarbon reserves – Thar coal, through integrated mining and power generation project.

For more information, contact:
Shamikh Ahmed
Engro Corporation Limited
8th Floor, Harbor Front Building, HC # 3,
Marine Drive, Block 4, Clifton
Karachi, Pakistan
Phone: +92-21-111-211-211
Fax: +92-21-35295948
Cell: +92-302-8275133
Email: sazaidi@engro.com, media.relations@engro.com
Website: www.engro.com