KARACHI – The Board of Directors of Engro Corporation Limited has announced the achievement of the Company’s highest ever profit after tax (PAT) of Rs 6.8 billion for the year ended December 31, 2010. In the case of 2010, the consolidated revenue stood at Rs 79.9 billion for the year ended December 31, 2010, as compared to Rs 58.2 billion in 2009.
The company announced earnings per share (EPS) of Rs 20.72 for 2010, as compared to an EPS of Rs 12.24 in 2009. A final cash dividend of 20 percent, Rs 2.0 per share has been approved by the board, making a total dividend of Rs 6.0 for 2010. The board has also recommended the issuance of 20 percent in bonus shares (one share for every five shares held).
In 2010, the urea industry declined to 6.1 million tonnes (from 6.5 million tonnes in 2009) due to the floods which reduced Kharif demand. We produced 972,000 tonnes of urea, and sold 949,000 tonnes of urea, with 22,000 tonnes consumed in Zarkhez operations, and maintained a full year share of 15 percent of the fertiliser market.
In 2010, the business also completed construction on the world’s largest single train ammonia urea plant, with a capacity of 1.3 million tonnes. The business earned a profit of Rs 3.7 billion on revenues of Rs 19 billion. The phosphates industry declined to 1.4 million tonnes from 1.8 million tonnes. Engro Eximp sold 329,000 tonnes of phosphates compared to 357,000 tonnes in 2009.
In 2010, the food business achieved volume growth of 27 percent in the processed milk segment, increasing volumes to 309 million litres from 243 million litres in 2009. The business achieved overall profitability in 2010, reaching the target earlier than planned, as well as beginning operations at the rice processing plant in Muridke, with sales expected to begin in 2011. The business on revenues of Rs 21 billion, earned a profit of Rs 177 million.
The petrochemical business began production from its VCM plant in the year, hence initiating full operations from the integrated facility. Production was lower than capacity due to limited availability of VCM and some operational constraints. The business on revenues of Rs 14.6 billion sustained a loss of Rs 770 million. The year also marked the beginning of commercial operations at the Company’s energy plant in Qadirpur, which is Engro’s first venture into the energy and power sector.
The plant demonstrated a billable availability factor of 95 percent, despite being its first year of operation and dispatched a total net power of 1,201 GWh to the national grid. In 2010, the Sindh Engro Coal Mining Company Limited (SECMC) completed the detailed feasibility study (DFS) as per the target deadline, confirming the technical, social and environmental viability of the Thar Coal Mining Project.
The business earned a profit of Rs 1.1 billion on revenues of Rs 5.7 billion
The chemical terminal’s actual throughput for the year was 1,104,000 tonnes vs. 1,063,000 tonnes in 2009, including LPG import of 31,000 tonnes in comparison to 40,000 tonnes in 2009. Engro Vopak also achieved a first in the history of LPG imports in the country by handling the largest ship (5,000 tonnes) to dock in Pakistan.
