KARACHI – The federal government has allowed the Engro Corporation to fulfill much of the energy needs of its new urea plant from the provision of natural gas. According to industry sources, the federal government has given the green light to the emerging conglomerate to cater to up to 80 percent of its energy requirements through gas for its newly developed urea plant.
Market analysts opine that a green signal from the government would help Engro commence test production at its new facility from today. “Engro’s new urea plant… would help it resume its test production,” said Khurram Shehzad of InvestCap Research. Engro has embarked upon a $ 1.7 billion expansion plan to boost its output in terms of fertiliser, foods, energy and chemicals.
Another analyst, Farhan Mahmood of Topline Securities, believes that the company is all set to deliver above average returns to its investors on the completion of its expansion plan. “We expect a two fold increase in Engro’s earnings by 2012, mainly spearheaded by its new $1.1 billion fertiliser plant and its booming food business,” Khan stated.
The analyst noted that besides impressive earnings (CAGR 2011-2014) of 31 percent, the company was planning to list its foods, fertiliser and power subsidiaries that might be short term price catalysts for the investors.
