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Karachi: Engro Polymer Chemical Limited (EPCL) has announced a consolidated net loss of Rs2.4 billion for the second quarter of the calendar year 2025, reflecting a substantial increase from the Rs688 million loss reported during the same period in 2024. The company attributes the widening losses to escalating captive gas tariffs and persistent challenges in the PVC market.
During its corporate briefing, EPCL management detailed that the cost of sales surged by 20% quarter-on-quarter due to higher gas prices. This increase effectively erased the company’s gross profit for the quarter. A significant factor was the rise in captive gas rates to Rs4,291 per MMBtu in March 2025, which included a levy of Rs791 per MMBtu.
Despite an improvement in the PVC core delta to US$275 per ton, the figure remains significantly below the three-year average of US$370 per ton, contributing to the financial strain. However, there is a potential reprieve in sight as the government has reduced the levy by 70% to Rs238 per MMBtu, effective July 1st.
EPCL’s management highlighted that if the new levy is applied retroactively from March 2025, it could lead to a cost reversal of Rs1.4 billion, offering some relief to the company’s financial position.