AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: Engro Polymer and Chemicals (EPCL) presented its recent corporate briefing, revealing key insights into its business performance and future outlook. Despite reporting a consolidated loss of Rs3.4 billion for the first nine months of 2025, the company observed a 6% rise in revenue, buoyed by record-high sales volumes of polyvinyl chloride (PVC).
The company attributed the revenue growth to a 19% year-on-year increase in PVC sales, reaching 173,000 tons, driven by robust domestic demand from the construction sector. PVC prices demonstrated stability in the third quarter, rebounding from a nine-month low of US$699 per ton to US$746 per ton. EPCL maintains a commanding market share of 80-85% in the PVC segment.
A notable highlight from the briefing was the improvement in the core delta to US$335 per ton during the third quarter, aided by a decline in ethylene prices to US$823 per ton. The management anticipates further enhancement in the core delta by the second quarter of 2026, as global ethylene supply is expected to increase, resulting in improved profit margins.
The company mentioned that there have been no new government notifications regarding the captive gas levy, which remains at Rs791 per MMBtu. Consequently, EPCL’s total captive gas cost is approximately Rs4,291 per MMBtu. High gas costs continue to impact margins, especially in the caustic soda segment.
EPCL is exploring third-party gas sourcing and alternative energy solutions such as coal, solar, and grid power. A comprehensive plan is anticipated by the end of the year. While caustic soda prices have remained stable, margins remain under pressure due to elevated energy costs.
The company has initiated sales of High Purity Oxygen (HPO) and has begun exporting, capturing about 20% of the domestic market.