Engro’s profits hit all-time high

Board of directors of Engro corporation limited has announced the achievement of the company’s highest-ever profit after tax of Rs8.06 billion for the year ended December 31, 2011. The consolidated revenue stood at Rs114.6 billion for the year ended December 31, 2011, as compared to Rs79.9 billion in 2010. The company announced Earnings per Share (EPS) of Rs20.50 for 2011, as compared to an EPS of Rs17.27 in 2010. A final cash dividend of 20 per cent (Rs2 per share) has been approved by the board; making a total dividend of Rs6 per share for 2011.The board has also recommended the issuance of 30 per cent bonus shares (3 shares for every 10 shares held).

Fertiliser

In 2011, the urea demand declined to 5.9 m tonnes (from 6.1m in 2010) due to reduced supply on account of severe gas shortage.

Food

In 2011, the food business achieved volume growth of 22 per cent in the dairy segment, securing a market share of 44 per cent as opposed to 39 per cent in 2010.

Petrochemicals

The petrochemical business’s production was lower than capacity due to limited availability of VCM and some operational constraints. However, by the end of the fourth quarter, the plant had overcome significant teething problems and is in better shape with VCM capacity utilisation up to 99 per cent.

Energy and Power

During the year 2011, the energy business recorded its highest dispatch of total net power of 1,657 GWh to the national grid as compared to 1,201 GWh in 2010.

Chemical Storage

The chemical terminal’s actual throughput for the year was 1,092 k tonnes versus 1,104 k tonnes in 2010. The decrease in annual throughput is mainly attributable to lower import of phosphoric acid, due to lower production of DAP as a result of gas load management by SSGCL.

Others

The automation and control engineering business registered a loss after tax of Rs169 million in 2011 due to reverberating impact of the recession, where customers remained cautious with their capital expenditures. The second issue of ‘Engro Rupiya Certificates’ was completely subscribed, raising Rs2.75 Bn during 2011.