Engro Fertilizers Announces Strong Quarterly Performance Amid Industry Challenges

Karachi: Engro Fertilizers Limited has disclosed robust financial results for the third quarter of 2024, reporting a revenue of PKR 58.6 billion, marking an 11% increase from the same period last year. The company also announced an interim dividend of PKR 2.50 per share.

According to information available from the Pakistan Stock Exchange (PSX), Engro Fertilizers faced significant challenges due to changes in market dynamics, including a reduction in commodity prices and varying weather patterns which impacted the agriculture sector in Pakistan. However, opportunities such as targeted government interventions and improved water availability have poised the company for potential growth.

The company’s profitability reached PKR 8.6 billion for the quarter, an 11% increase year-on-year, with earnings per share (EPS) at PKR 6.41, slightly down from PKR 7.17 in the corresponding quarter of the previous year. The year-to-date financial highlights revealed a total revenue of PKR 171.8 billion, up 16% compared to the same period last year, and a net profit of PKR 17.9 billion, reflecting a 20% increase.

Engro Fertilizers has been proactive in addressing the urea oversupply in the market by implementing temporary sales incentives, especially during the off-season, to support the industry value chain. Despite these challenges, Engro Fertilizers’ contribution to the national exchequer significantly increased, with around PKR 31.8 billion paid in government taxes, duties, and levies, a substantial rise from PKR 16.5 billion in 2023.

The company continues to focus on long-term sustainability measures, including a USD 300 million capital expenditure to enhance gas pressure from the Mari field, which is essential for maintaining operational efficiency.

The post Engro Fertilizers Announces Strong Quarterly Performance Amid Industry Challenges appeared first on .