Engro Polymer and Chemicals Reports Increased Revenue Despite Losses

KARACHI: Engro Polymer and Chemicals Limited (EPCL) held its analyst briefing today, presenting an overview of its financial performance for the first nine months of the calendar year 2025. The company reported a net loss of PkR3.5 billion, a significant increase from the PkR2.3 billion loss recorded during the same period last year. This downturn is primarily attributed to reduced Ethylene-PVC core delta margins, increased gas prices, and maintenance costs associated with plant turnarounds.

Despite the financial losses, EPCL experienced a 6% year-on-year revenue increase, driven by higher sales volumes of Polyvinyl Chloride (PVC) and the introduction of Hydrogen Peroxide (HPO) to its product line. The company reported selling a record 175,000 tons of PVC, marking a 19% increase from the previous year, bolstered by a recovery in construction demand.

International PVC prices showed improvement in the third quarter, reaching US$746 per ton in September 2025, aided by easing US export pressure and better regional market conditions. Concurrently, the cost of ethylene decreased, resulting in improved core margins to US$334 per ton.

Engro Polymer and Chemicals remains optimistic about its future outlook, citing the positive shifts in market dynamics and a strategic focus on expanding its product offerings to harness the recovering demand in the construction sector.