AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: Engro Holdings has announced a reassessment of its strategic direction concerning the divestment of its thermal assets, while remaining open to exploring opportunities for the divestment of Engro Powergen Qadirpur Limited (EPQL), according to a recent corporate briefing.
The company is actively seeking low BTU gas from alternative fields to enhance EPQL’s dispatch levels. Despite a reported 60% year-over-year decrease in EPQL’s profitability to Rs460 million in the first half of 2025, Engro remains optimistic about future opportunities.
Engro Connect experienced significant growth, with a 75% increase in revenue driven by an expanded site count to 14,975. This expansion places the company among the top 20 independent tower companies worldwide.
For Deodar, Engro’s management noted lower tenancy rates due to its brownfield status compared to Enfrashare but identified substantial growth potential. The company has booked one-third of its debt and plans to continue booking the remaining portion according to the payment period.
Engro Fertilizers Limited (EFERT) saw a 29% decline in sales year-over-year, totaling Rs80.6 billion in the first half of 2025. Urea volumes fell by 22.5% to 2,351,000 tons. Engro is in discussions with relevant ministries to secure export approval for its urea inventory, which may be granted post-Rabi season, expected in the fourth quarter of 2025.
Engro Polymer and Chemicals Limited (EPCL) faced challenges due to a decrease in core delta, attributed to declining demand in China and rising energy costs. The company is implementing a cash-saving strategy and anticipates introducing a hybrid energy solution by year-end.
Engro Elengy and Vopak experienced an 8% year-over-year decrease in chemical handling, managing 36 cargos with over 97% availability. However, increased taxation under the Finance Act 2025 is expected to constrain profitability.
Engro Eximp FZE recorded a 20% revenue growth year-over-year in the first half of 2025, driven by a focus on securing third-party trades. The 3P ratio improved to 57% from 24% in the same period last year.
FrieslandCampina Engro Pakistan Limited (FCEPL) reported a 5% decline in topline to Rs52 billion, attributed to a decrease in the packaged milk category. However, profits increased by 5% due to a better mix and cost optimization.
On an unconsolidated level, Engro Holdings’ earnings declined due to the absence of dividends and the transfer of a DH partner. The company reported a profit attributable to owners of Rs33.7 billion in the second quarter of 2025, inclusive of a one-off thermal asset and other related adjustments. Excluding these, earnings stood at PKR 6.0 per share.
Engro Holdings is currently trading at a projected 2025 and 2026 price-to-earnings ratio of 7.1x and 5.6x, respectively.