The Board of Directors of Engro Corporation Limited Friday announced the financial results for the first quarter that ended on March 31, 2012. The consolidated revenue of the Company stood at Rs. 22.9 billion for the first quarter 2012, as compared to Rs 21.8 billion in the same period last year, while net loss after tax (attributable to equity holders of the holding company,) was Rs. 649 million as compared to a net profit after tax of Rs. 2,054 billion in the same period last year. The loss was primarily due to high urea inventories with manufacturers (due to excessive urea imports) and the Company expects to realize profits in the subsequent quarters.
During the quarter the sales of urea for the fertilizer business declined as a result of a long supply situation created by the arrival of imported urea, higher prices and poor farm economics. The fertilizers business registered a decline in market share to 8% as opposed to 20% in the same period last year. The loss is a direct result of lower sales volumes and high depreciation & financial costs due to the capitalization of Enven plant. The foods business turnover grew by 54% to Rs. 9.9 billion during the first quarter of 2012 as compared to Rs. 6.4 billion for the corresponding period last year. In addition, the Company’s investment in the Halal Foods business in Canada, Al Safa, also achieved sizable sales revenue of Canadian $ 2.5 million during the first quarter of 2012. The petrochemicals business saw an increase in domestic PVC sales to 36 Ktons in Q1 2012, as compared to 29 Ktons in the corresponding period last year. The business, however, posted a net profit for the three months ended March 31, 2012, compared to a loss in Q1 2011. The higher profitability was mainly attributable to higher VCM production, increased sales and insurance claim booked as other income. During the first quarter, the Engro Qadirpur Powergen plant dispatched a total of 421 GWh to the national grid and demonstrated a billable availability of 100.4%. The plant also went through its second major maintenance exercise which was completed successfully before time. With regards to the future outlook for its businesses the Company expects the gas supply scenario to remain volatile with fertilizer plants on the SNGPL network expected to continue facing supply outages and disruptions.
