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Karachi: Engro Polymer and Chemicals Ltd. (EPCL) has reported a narrowed loss for the third quarter of the calendar year 2025, showing signs of resilience despite continued pressure on PVC-ethylene margins. The company disclosed a loss of 222 million Pakistani Rupees, equivalent to a loss per share of 0.24 Rupees. This is a significant improvement compared to the same period last year when the company recorded a loss of 698 million Rupees, or 0.77 Rupees per share.
The financial performance exceeded expectations, largely attributed to higher-than-estimated sales and improved gross margins. EPCL’s revenue for the quarter remained unchanged year-on-year at 20 billion Rupees. However, this figure surpassed predictions, likely due to increased sales volumes and stronger pricing premiums over import parity prices.
The company’s gross margins improved noticeably, rising to 11.3% from 5.5% in the same quarter last year. This enhancement was driven by the higher sales volumes and better pricing premiums, although further clarity on these factors is anticipated.
Despite these positive developments, the core PVC-ethylene margins saw a decline of 22% year-on-year and 1% quarter-on-quarter, settling at 293 US dollars per ton. This drop is mainly attributed to a 16% year-on-year decrease in international PVC prices, influenced by an oversupply stemming from new global production capacities that became operational during the quarter.