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Tag: Engro Corp

  • Engro Corp posts 23% revenue growth in nine months

    Engro Corp posts 23% revenue growth in nine months

    KARACHI: Engro Corporation Limited has posted a significant 23 per cent growth in consolidated revenue for the nine-month period ended on September 30, 2021.

    Pakistan’s premier conglomerate, Engro Corporation (PSX: ENGRO) announced its financial results for the third quarter ended September 30, 2021.

    Engro delivered a strong operational performance in first nine months of 2021 as its consolidated revenue grew by 23 per cent from Rs 182,497 million as compared with Rs223,581 million in the corresponding period of the last year.

    The company recorded a consolidated Profit After Tax (PAT) of Rs40,504 million up by 31 per cent from same period last year.

    Profit attributable to the owners stood at Rs23,173 million compared to Rs18,345 million in the first nine months of 2020, resulting in an Earnings per Share (EPS) of Rs40.22 compared to Rs31.84 in the nine months of 2020. The growth in the bottom line is primarily attributable to increased profits posted by Fertilizers and Petrochemicals businesses.

    On a standalone basis, the Company posted a PAT of Rs 16,015 million against Rs 9,283 million in 9M 2020, translating into an EPS of Rs 27.80 per share. The Company also announced an interim cash dividend of Rs 5 per share for third quarter taking the total dividend distributed for the year to Rs 24 per share.

    Financial Performance – Segmental Perspective:

    Fertilizers: Domestic market witnessed strong agricultural sector performance in 2021 with limited impact from COVID-19 led lockdowns. Prices of agri commodities remained firm during the quarter resulting in improved earnings for farmers and higher urea industry volumes versus prior year.

    Engro Fertilizers Limited (“EFert”) revenue during the period stood at Rs 92,742 million versus 78,138 million on the back of higher Urea sales of 1,644 KT in comparison to 1,451 KT in 9M 2020. Urea production stood 1,560 KT versus 1,694 KT in 9M 2020 on account of planned plant turnarounds. EFert recorded Phosphate sales of 242 KT against 366 KT in 9M 2020. As a result, the PAT for EFert stood at Rs 14,921 million for 9M 2021 as compared to Rs 11,491 million in the same period last year.

    Petrochemicals: International PVC prices reached an all-time high of $1850/MT by September end due to high demand along with global supply disruptions. Domestic PVC market recorded a volumetric increase of 30 per cent in Q3 2021 against previous quarter as buying sentiment improved.

    Engro Polymers and Chemicals Limited (“EPCL”) announced commercial operations of the new PVC plant on March 01, 2021, increasing the capacity by 100 KT to 295 KT per annum and commercial operations of 50 KT new VCM DBN capacity on June 25, 2021 increasing capacity to 245 KT per annum.

    In 9M 2021, EPCL recorded a revenue of Rs 49,323 million as compared to Rs 22,931 million in in 9M 2020. The business witnessed its highest ever profit of Rs 10,372 million versus Rs 2,103 million on account of increased volumetric sales, efficient operations and higher international prices.

    Connectivity: Engro continued to expand its footprint through Engro Enfrashare which has now become the country’s largest Independent TowerCo (with 48 per cent market share vs 41 per cent in 2020) in terms of operational sites, serving all Mobile Network Operators in Pakistan. As at September 30, 2021, Enfrashare held a portfolio size of 2,030 operational sites and 2,219 tenancies resulting in a tenancy ratio of 1.09x.

    The telecom sector in Pakistan is registering an annual growth of 28 per cent with the 3G / 4G subscriber base expanding beyond 100 million. This has led Engro to enhance its total equity investment in the Telecom Infrastructure vertical to Rs 21.5 billion. Engro has also formed a dedicated platform for connectivity and telecom infrastructure related initiatives by the name of Engro Connect (Pvt.) Limited. Engro Connect is a wholly owned subsidiary of Engro and will hold complete ownership of Engro Enfrashare (Pvt.) Limited.

    Energy & Power: Sindh Engro Coal Mining Company (“SECMC”) supplied around 3 million tons of coal to Engro Powergen Thar Limited (“EPTL”) during the period. SECMC’s expansion work to enhance its output to 7.6 million tons per annum is in progress. EPTL remained fully operational and achieved 84.7 per cent availability with a load factor of 82 per cent, dispatching 3,253 GwH to the national grid during the period.

    Engro Powergen Qadirpur Limited (“EPQL”) operates on permeate gas and is currently facing gas curtailment from the Qadirpur gas field as it continues to deplete. To make up for this shortfall, EPQL’s plant has been made available on mixed mode. The plant dispatched a net electrical output of 615 GwH to the national grid with a load factor of 44 per cent compared to 32 per cent during the same period last year. EPQL posted a PAT of Rs 1,463 million for the current period as compared to Rs 2,031 million for 9M 2020, which is mainly attributable to retirement of debt component.

    Terminals: Profitability of both the LNG and chemicals terminal remained healthy during the period. The chemicals terminal throughput volumes normalized to 934 KT versus 806 KT last year as volumes were impacted in 2020 due to lockdowns because of COVID-19. The LNG terminal handled 52 cargoes against 54 cargoes during same period last year, delivering 158 bcf re-gasified LNG in to the SSGC network.

    With around two years of planning and efforts amidst COVID-19 volatility, Engro Elengy Terminal Limited (“EETL”) has successfully completed Pakistan’s first-ever dry docking activity at Qatar dockyard. During the dry docking period, FSRU Sequoia enabled gas supply continuity ensuring national energy security. After completion of its dry docking, FSRU Exquisite has now returned to Pakistan and is online.

    Engro Corp registers 84% net profit in first half
  • Engro Enfrashare signs Rs4.5 billion Islamic financing

    Engro Enfrashare signs Rs4.5 billion Islamic financing

    KARACHI: Engro Enfrashare, a wholly-owned subsidiary of Engro Corporation, has entered into an Islamic syndicate arrangement amounting to Rs4.5 billion, led by Meezan Bank and Faysal Bank, according to a statement issued on Tuesday.

    The proceeds raised through this Islamic syndication would be utilized to finance the development of tower sites for various mobile network operators (MNOs) operating in Pakistan.

    As per terms of the financing arrangement, the tenor of the financing will be seven years, including a grace period of two years. The syndicate includes Meezan Bank Limited, Faysal Bank Limited, National Bank of Pakistan, MCB Islamic Bank and Allied Islamic Bank.

    Last month, Engro had announced to enhance its total equity investment in the Telecom Infrastructure Vertical to Rs21.5 billion. The Telecom Infrastructure vertical was setup in 2019 to accelerate the development of connectivity infrastructure in Pakistan, thereby providing an opportunity for the people to be part of the new digital era.

    Engro Enfrashare is engaged in the acquisition and construction of shared telecom towers, provision of various telecommunication infrastructure and related services, including state-of-the-art network monitoring solutions.

    Since its inception, the Company has now established strong relationships with all MNOs active in Pakistan and is working closely with them to develop build-to-suit (B2S) sites across the country to serve their coverage and capacity requirements.

    According to Ghias Khan, President & CEO Engro Corporation: “Engro is committed to expanding its footprint in the Telecom Infrastructure vertical to power Pakistan’s progress in the digital era. With the support of banking partners like Meezan Bank, Engro Enfrashare will continue to work towards its purpose of making connectivity more accessible and affordable for everyone.”

    Irfan Siddiqui, Founding President & CEO, Meezan Bank, added that digitization would be a major element driving business success in the era we are entering into.

    Meezan Bank being not only the country’s leading Islamic Bank but also the Best Bank in Pakistan, not only understands the significance of telecom infrastructure but also encourages companies to build strong telecom infrastructure that would support their digitization initiatives and enable them to deliver a better customer experience.

    A signing ceremony of the agreement was signed at the Head Office of Engro Corporation, in the presence of Ghias Khan (President & CEO, Engro Corporation), Mazhar Hasnani (Chief Financial Officer, Engro Corporation), Faisal Sattar (CEO, Engro Enfrashare), Irfan Siddiqui (President & CEO, Meezan Bank), Ariful Islam (Deputy CEO of Meezan Bank), Yousaf Hussain (President & CEO, Faysal Bank) and other senior representatives of both institutions.

    Enfrashare, Telenor sign agreement to develop connectivity infrastructure
  • Engro, BOP make arrangements for agri financing

    Engro, BOP make arrangements for agri financing

     KARACHI: Engro Fertilizers Limited and The Bank of Punjab (BOP) have made arrangements to provide financing to farmers through the bank’s branch network across Pakistan, a statement said on Thursday.

    Under this arrangement, progressive farmers under Engro Fertilizers Limited’s Shandaar Kissan program will be able to avail financing on easy terms and concessional markup rates from the BOP. These farmers will avail of this facility to invest in their infrastructure, mechanization, and working capital for yield improvements.

    This financing arrangement will help farmers to improve farm economics through better production and, thus, increase their income levels as well.

    The MoU signing ceremony, held at Engro Fertilizers Limited’s Head Office in Karachi, was attended by Amir Iqbal – Chief Commercial Officer and Imran Ahmed – Chief Financial Officer of Engro Fertilizers Limited, whilst the BOP was represented by Farid Ahmed Khan – Group Chief Corporate Investment Banking and  Asif Riaz – Group Head Retail & Priority Sectors Lending.

    In a joint statement, Amir Iqbal (Chief Commercial Officer, Engro Fertilizers Limited) and Mr. Asif Riaz (Group Head Retail & Priority Sector Lending, The Bank of Punjab) shared that, “Prioritizing financial inclusion and well-being of farmers is key to develop the agricultural sector, which in turn results in the progress of Pakistan. We are excited to partner on this initiative that has the potential to transform the country’s agricultural landscape by promoting improved agri practices, thereby, enabling better crop yields and food security for the nation.”

    This initiative is yet another milestone for both organizations in their journey to create a meaningful impact in the agri landscape of Pakistan. Last year, Engro Fertilizers Limited and the BOP had also partnered to deliver accessible warehouse receipt financing to farmers, traders, and processors, for the winter maize and basmati rice crop.

    Under the Shandaar Kissan program, Engro Fertilizers Limited has registered more than 2500 selected farmers and provided them Seed to Harvest solutions to improve their farm productivity. On the other hand, the BOP continues to provide financial assistance under its vast range of agri products and SBP schemes.

  • Engro enhances telecom investment to Rs21.5 billion

    Engro enhances telecom investment to Rs21.5 billion

    KARACHI: Engro Corporation has announced to enhance its total equity investment in the telecom infrastructure vertical to Rs21.5 billion.

    (more…)
  • Engro Corp registers 84% net profit in first half

    Engro Corp registers 84% net profit in first half

    Engro Corporation Limited on Tuesday declared 84 per cent increase in after tax profit for the half ended June 30, 2021. The company announced Rs29.11 billion as net profit for first half (January – June) 2021 as compared with Rs15.8 billion in the same half of the last year.

    Engro delivered a strong operational performance in 1H 2021 as its consolidated revenue grew by 30% from PKR 107,163 million in 1H 2020 to PKR 139,319 million in 1H 2021. The Company recorded a consolidated Profit After Tax (PAT) of PKR 29,111 million compared to PKR 15,529 million for the similar period last year.

    Profit attributable to the owners stood at PKR 17,053 million compared to PKR 9,059 million for the prior period, resulting in an Earnings per Share (EPS) of PKR 29.60 compared to PKR 15.73. The growth in bottom line is primarily attributable to increased profits posted by Engro Fertilizers and Engro Polymer & Chemicals.

    On a standalone basis, the Company posted a PAT of PKR 9,683 million against PKR 4,858 million for the same period last year, translating into an EPS of PKR 16.81 per share. The Company announced an interim cash dividend of PKR 7 per share for the second quarter.

    Fertilizers: The country has witnessed a robust agronomic demand in 1H 2021 enabled by favorable farm economics, better farm output prices and enhanced support pricing. Engro Fertilizers (“EFert”) produced 1,070 KT of urea vs. 1,136 KT for the comparative period; the slight decrease in production was on account of a planned turnaround in one of the Plants in Q1.  EFert recorded half yearly urea sales of 1,115 KT vs. 847 KT and phosphate sales of 105 KT vs. 119 KT during the same period last year. As a result, the PAT for EFert stood at PKR 10,509 million for 1H 2021 as compared to PKR 4,457 million in the same period last year.

    Petrochemicals: The first half of the year experienced substantially higher international PVC prices, which rose to an unprecedented level of USD 1,670/T in Q1 2021 due to global supply limitations and increased freight costs. Subsequently, in Q2, the price reduced to USD 1,345/T and was still significantly higher from the historical price levels. Engro Polymer and Chemicals Limited (“EPCL”) announced commercial operations of the new PVC Plant on March 1, 2021, increasing the capacity to 295,000 MT per annum and commercial operations of the new 50 KT VCM de-bottlenecking capacity on June 25, 2021, thus, increasing its capacity to 245,000 MT per annum.

    In 1H 2021, EPCL recorded a revenue of PKR 30,496 million as compared to PKR 12,874 million in the same period last year. EPCL witnessed its highest ever 6-month profit on account of increased volumetric sales, efficient operations, and higher international prices; Engro Polymer posted a PAT of PKR 7,265 million compared to a PAT of PKR 223 million for the same period last year.

    Connectivity: Engro continued to expand its footprint in the Connectivity vertical through Engro Enfrashare, which has now become the country’s largest Independent Tower Company (with 46% market share) in terms of operational sites, serving all Mobile Network Operators in Pakistan. As of June 2021, Enfrashare held a portfolio size of 1,817 operational sites and 1,963 tenancies, translating into a tenancy ratio of 1.08x, with a market share of 46%; an increase of 5% from 41% share maintained in 2020.

    Energy & Power: Sindh Engro Coal Mining Company (“SECMC”) supplied ~2 million tons of coal to Engro Powergen Thar (“EPTL”) during initial half of the year. EPTL remained fully operational and achieved 81% availability with a load factor of 78% and a dispatch of 2,052 GwH to the national grid during the first half of the year. SECMC’s expansion work to enhance its output to 7.6 million tons per annum is in progress.

    Engro Powergen Qadirpur Limited (“EPQL”) operates on permeate gas and is currently facing gas curtailment from the Qadirpur gas field as it continues to deplete. To make up for this shortfall, EPQL’s Plant has been made available on mixed mode. The Plant dispatched a net electrical output of 394 GwH to the national grid, with a load factor of 43% compared to 28.4% during similar period last year. The business posted a PAT of PKR 905 million for the current period as compared to PKR 1,310 million for Q1 2020, which is mainly attributable to the retirement of debt component.

    Terminals: Engro’s Terminal businesses recorded healthy profits in the first half of the year. The LNG terminal handled 35 cargoes, delivering 106 billion cubic feet (bcf) re-gasified LNG to the SSGC network. Moreover, the terminal also successfully completed the berthing and startup of FSRU Sequoia to manage Pakistan’s first ever dry-docking activity. The advent of Sequoia has ensured gas availability for the country while dry-docking of FSRU Exquisite continues at Qatar dockyard.

    The chemicals Terminal had an actual throughput of 638 KT vs. 583 KT during the similar period last year. The increase was primarily observed in chemical volumes, offset by lower LPG handling.

  • Engro selects technology partners for polypropylene production facility

    Engro selects technology partners for polypropylene production facility

    KARACHI:  Engro Corporation, Pakistan’s premier conglomerate, has selected Honeywell UOP and W. R. Grace & Co. as technology partners to use their licensed process technology for the $1.5 billion, 750,000 Propane Dehydrogenation (“PDH”) and Polypropylene (“PP”) production facility, that would make Pakistan a self-sufficient producer of Polypropylene, a statement said on Tuesday.

    Polypropylene resin is used in the manufacturing of a variety of daily use consumer products including woven bags, food and non-food packaging, films, sheets, household containers, battery casings, kitchenware, electrical appliances, bottles, caps, pipes & fittings, medical equipment, and a wide range of other products. To meet these needs, polypropylene has a local annual demand of 500,000 with an expected grow rate of 7 percent annually.

    Honeywell will provide its C3 Oleflex™ technology and basic engineering design services, in addition to equipment, catalysts and adsorbents for the plant. Since 2011, most of the new dehydrogenation projects globally have been based on UOP C3 Oleflex technology.

    However, this will mark the first use of C3 Oleflex in Pakistan. The technology is designed to have a lower cash cost of production and higher return on investment when compared to competing dehydrogenation technologies.

    Its low energy consumption, low emissions and fully recyclable, platinum-alumina-based catalyst system, helps minimize its impact on the environment. The independent reactor and regeneration design of the Oleflex technology helps maximize operating flexibility and onstream reliability.

    W. R. Grace & Co., the leading independent supplier of polyolefin catalyst technology and polypropylene (PP) process technology, will provide its state-of-the-art UNIPOL® PP Process Technology to help achieve mechanical and operational simplicity. The process technology, coupled with Grace’s proprietary catalyst and donor systems and the UNIPOL UNIPPAC® Process Control System, allows for maximum performance.

    While announcing the new partnerships, Ghias Khan, President & CEO of Engro Corporation said that, “Engro continues on its journey towards solving the most pressing issues of our time by investing in projects which will serve to be catalysts of growth for Pakistan.

    “For the Project, we have selected Honeywell and Grace as our technology partners based on their extensive experience and cutting-edge solutions that have helped to set up such projects globally. This collaboration will support the advanced studies for the Project, which can be a significant milestone for Engro and Pakistan towards import substitution that will help build foreign exchange reserves, while also enhancing the petrochemicals landscape of the country.”

    Pakistan faces a critically adverse balance of payments situation due to the country’s continued reliance on imports, and petrochemicals are one of the largest imports of the country, contributing around $2 billion to the import bill. Currently, Pakistan spends about $600 million on annual import of polypropylene.

    With decades of experience in petrochemicals and a commitment to further develop its footprint in the petrochemicals vertical, Engro started conducting the commercial feasibility of the PDH complex in April 2019.

    Recently, Engro announced an investment of over $30 million to conduct engineering, design and technical studies including a Front End Engineering Design (FEED) study in relation to   the Project.

    The studies will help Engro delineate the technical complexities, refine the investment cost estimates, enhance its commercial understanding and devise mitigation strategies for potential risks of the project.

  • Engro Corp announces Rs14.8 billion profit after tax in first quarter

    Engro Corp announces Rs14.8 billion profit after tax in first quarter

    KARACHI: Engro Corporation Limited has announced Rs14.8 billion profit after tax during first quarter (January – March) 2021 as compared with Rs5.9 billion in the same quarter of the last year, showing about 150 percent growth.

    According to a statement issued on Thursday, Engro’s consolidated revenue grew by 58 percent from Rs 44,977 million during Q1 2020 to Rs 70,866 million in Q1 2021.

    The Company posted a consolidated Profit After Tax (PAT) of Rs 14,779 million compared to Rs 5,940 million for the similar period last year.

    Profit attributable to the owners was recorded at Rs 8,337 million compared to Rs 3,317 million for the prior period, resulting in an Earnings per Share (EPS) of Rs 14.47 compared to Rs 5.76. This growth in the results is primarily attributable to the higher profitability reported by Engro Fertilizer and Engro Polymer & Chemicals.

    On a standalone basis, the Company posted a PAT of Rs 3,586 million against Rs 780 million for the same period last year, translating into an EPS of Rs 6.22 per share. The Company announced an interim cash dividend of Rs 12 per share for the first quarter.

    Financial Performance – Segmental Perspective:

    Fertilizers: Domestic market witnessed strong agricultural sector performance in Q1 as farm economics continued to improve, driven by better farm output prices and enhanced support pricing. The Company produced 523 KT of Urea vs. 572 KT for the comparative period due to a turnaround in one of the plants.  The Company delivered quarterly Urea sales of 582 KT vs. 169 KT and Phosphate sales of 74 KT vs. 36 KT during the same period last year. As a result, the PAT for the Company stood at Rs 5,741 million for Q1 2021 as compared to Rs 571 million in the same period last year.

    Petrochemicals: During Q1 2021, international prices of PVC rose to an unprecedented level of USD 1,670 per ton as the winter storm in the US drove multiple unplanned shutdowns and forced majority of the PVC capacity offline. Furthermore, the Company announced commercial operations of the new PVC plant on 1st March 2021, which increased the total capacity to 295,000 MT per annum.

    During Q1 2021, the Company recorded a revenue of Rs 15,671 million as compared to Rs 7,058 million in Q1 2020. With increased volumetric sales, efficient operations and higher international prices, the Company posted a PAT of Rs 4,143 million compared to a PAT of Rs 193 million for the same period last year. This is the highest quarterly profit ever achieved by Engro Polymer and Chemicals.

    Connectivity: Engro continued to invest and progress in its Connectivity vertical through Engro Enfrashare strengthening its footprint to a portfolio size of 1,577 operational sites (1,265 sites in 2020), while hosting 1,681 tenancies (1,362 tenancies in 2020) and catering to all Mobile Network Operators (MNOs) in Pakistan. This portfolio expansion has led to a significant increase in the market share as an Independent TowerCo from 41 percent in 2020 to 44 percent during Q1 2021.

    Energy & Power:

    Mining and power plant operations at Thar continued smoothly, with over a million tons of coal being supplied by the mine. The plant remained fully operational and achieved 81 percent availability with a load factor of 76 percent and a dispatch of 987 GwH to the national grid during the quarter. Meanwhile, the expansion of the mine at Thar to increase output to 7.8 million tons per annum is underway.

    The Qadirpur Power Plant operates on permeate gas and is currently facing gas curtailment from the Qadirpur gas field as it continues to deplete. To make up for this shortfall, the plant has been made available on mixed mode. The Plant dispatched a Net Electrical Output of 190 GwH to the national grid with a load factor of 41 percent compared to 37 percent during similar period last year. The business posted a PAT of Rs 399 million for the current period as compared to Rs 895 million for Q1 2020, which is mainly attributable to retirement of debt component.

    Terminals: Profitability of both the LNG and chemicals terminal remained healthy for the current quarter. The LNG terminal handled 18 cargoes, delivering 52.8 bcf re-gasified LNG in to the SSGC network. The chemicals terminal had an actual throughput of 286 kT vs. 246 kT during the similar quarter last year. The increase was primarily observed in chemical volumes, offset by lower LPG handling.

  • Engro Corp approves $31.4m for petrochemical project study

    Engro Corp approves $31.4m for petrochemical project study

    KARACHI: The board of directors of Engro Corporation Limited has approved $31.4 million for commencement of a study on a projected related to petrochemical chemical for future investment prospects.

    In an information shared with the Pakistan Stock Exchange (PSX), the company said that the board in its meeting held on April 08, 2021 approved an amount of up to $31.4 million towards conducting engineering, design and technical studies including a Front End Engineering Design (FEDD) study in relation of PDH-PP Project.

    The result of these studies, when completed, are expected to inform the final investment decision in relation to this project, which decision will also be based on a conducive policy environment and arranging the right mix of debt and equity partners at such time.

  • Engro Corp declares 45 percent growth in annual profit

    Engro Corp declares 45 percent growth in annual profit

    KARACHI: Engro Corporation (PSX: ENGRO) has declared 45 percent increase in annual profit to Rs44.4 billion for the year ended December 31, 2020 as compared with Rs30.59 billion in the preceding year.

    Engro’s consolidated revenue grew by 10 PERCENT, from Rs225.76 billion during 2019 to Rs248.81 billion primarily attributable to higher revenue from full-year operations of Thar energy projects.

    On a standalone basis, the company posted a profit after tax of Rs16.30 billion against Rs14.30 billion for the comparative year, translating into an earnings per share of Rs28.29 per share.

    Increase in standalone profitability is primarily on account of higher dividends from subsidiaries as well as full inter-corporate tax relief on dividends in 2020 versus partial relief in 2019.

    The company announced a final cash dividend of Rs2/- per share for the year. This is in addition to Rs24/- per share announced during the year, bringing cumulative payout to Rs26/- per share.

    COVID-19: Hussain Dawood Pledge

    The Covid-19 pandemic continues to be an unprecedented global challenge that is, to date, having devastating effects on public health, economies, and societies around the world. As vaccination programs roll-out globally, Pakistan is procuring Covid-19 vaccines from various manufacturers and planning to launch its Covid-19 vaccination drive in the first quarter of 2021.

    Despite these challenging times, we remain committed to our Central Idea which guides us to improve lives of all Pakistanis and have a positive impact on the society. In order to tackle the pandemic’s negative impacts on Pakistan, Chairman Hussain Dawood, on behalf of Dawood Hercules Corporation, Engro Corporation, and his family, pledged a contribution in services, kind, and cash of Rs1 billion for short / medium / and long-term recovery. To date,  Rs301 million have been donated via cash and kind with focus on disease prevention, protecting and enabling healthcare practitioners and frontline workers, enabling patient care and facilities and bolstering livelihoods and sustenance of the most deserving in society.

    We believe we must remain fully transparent while attempting to make an impact and work towards saving lives. Further details regarding the Pledge and its initiatives may be viewed at

  • Engro Fertilizers, MCB Bank introduce first electronic bank guarantee solution

    Engro Fertilizers, MCB Bank introduce first electronic bank guarantee solution

    KARACHI: Engro Fertilizers Ltd and MCB Bank Ltd have partnered to accelerate digitization of financial products and developed Pakistan’s first-ever solution to electronically manage bank guarantees.

    With businesses adopting virtual operations and enforcing minimal physical interaction in the wake of COVID-19, Engro Fertilizers Ltd engaged MCB Bank Ltd, one of the leading Banks in the country, to develop an electronic bank guarantee management solution that will promote digitalization and enhanced corporate service delivery.

    The Bank, in consultation with Mohsin Tayebaly & Co, managed legal and regulatory concerns to provide a SWIFT-based mechanism to Engro Fertilizers Ltd at nominal cost and minimal impact to business operations. Additionally, the designed process will also facilitate to mitigate the risk of counterfeit bank guarantees, identified as a recurring cause of concern in Pakistan’s banking Industry.

    This system, currently operational only for Engro Fertilizers, is expected to be rolled out for all other clients of MCB Bank. Given the existing credit sales model offered by most corporations, the product would assist the wider industry in facilitating their customers and stakeholders in the near future.

    This project is in line with the commitment of Engro Fertilizers Ltd to improve national corporate practices and lead the industry with innovative solutions. Earlier this year, the Company was recognized as the best in industrial sector for showing outstanding performance and demonstrating progressive management practices, by the Management Association of Pakistan (MAP).

    In a joint statement, Nadir S Qureshi (CEO Engro Fertilizers Ltd) and Imran Maqbool (President/CEO MCB Bank Ltd) shared pride in the abilities of the combined team responsible for identifying and developing this much needed financial solution.

    They were confident that this solution would transform the way bank guarantees could now be managed in the country. Imran Ahmed, CFO Engro Fertilizers Limited, added that designing electronic bank guarantees seemed to be a very challenging task at first, but the teams were able to co-create this solution with great dedication and professionalism.