KARACHI: As part of the Rs1 billion Hussain Dawood Pledge, Engro Foundation – the social investment arm of Engro Corporation – has provided an additional Rs40 million to extend its partnership with Shaukat Khanum Memorial Cancer Hospital (SKMCH) and Research Centre for expansion of COVID-19 testing capacity in Southern Punjab.
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Engro Corp declares Rs5.94 billion after tax quarterly profit
KARACHI: Engro Corporation has declared profit after tax at Rs5.94 billion for the quarter ended March 31, 2020. The after tax profit fell by nine percent when compared with Rs6.56 billion in the same quarter last year.
Engro’s consolidated revenue grew by 11 percent in comparison to the prior period, mainly driven by energy projects in Thar coming online during July 2019 and offset by lower turnover of Fertilizers and Petrochemicals businesses.
Profit attributable to the owners was recorded at Rs3,317 million compared to Rs4,010 million for the prior period.
On a standalone basis, the Company posted a profit after tax of Rs780 million against Rs3.832 billion for the same period last year, translating into an earning per share of Rs1.35 per share.
This decrease is primarily attributed to delays in receipts of dividends from subsidiaries as their Annual General Meetings (AGMs) have been postponed on account of the COVID-19 lockdown.
This is, therefore, a temporary timing difference between quarters and not reflective of underlying performance of the Company.
The company announced an interim cash dividend of Rs6 per share for the first quarter. Like in the past, the Board has endeavored to maximize dividends on a quarterly basis, however, the future dividends for the year would be based upon prevailing situation and earnings for the year.
The portfolio of Engro Corporation is resilient in these difficult times and the Company remains confident that despite challenging circumstances, it will be able to maintain a healthy performance in upcoming quarters.
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Engro Polymer stops production activities on SEPA notice
KARACHI: The production activities have been stopped at plant of Engro Polymer and Chemicals located at Port Muhammad Bin Qasim, said a statement on Monday.
The production activities have been stopped after Sindh Environment Protection Agency (SEPA) took notice of gas leakage incident at the plant.
The company in a notification informed the stock market: “In relation to isolated incident reported to Pakistan Stock Exchange on March 06, 2020, Engro Polymer and Chemicals Limited (ECPL) has received a notice under Section 21(2) of Sindh Environment Protection Act, 2014 from the Enviornmental Protection Agency Government of Sindh. The notice has directed EPCL to stop all production activities at the plant and fixed a hearing on March 10. In compliance with the notice, all production activities are on hold at the plant.”
Earlier on Friday March 6, 2020 the incident was reported at Engro Polymer and Chemcial.
In a statement the company said that it was gathering complete details related to the incident.“Based on initial reports, some people have been shifted to a nearby medical facility for treatment of vomiting/nausea condition,” it said.
The company’s staff is accompanying these people to ensure that they receive adequate medical treatment, it said. “No injuries or fatalities have been reported,” the company added.
It further said that specific areas of the plant have been taken offline as a precautionary measure, and the company will conduct a complete and thorough investigation into the incident and will keep the stock exchange informed with any material developments in the matter.
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Gas leakage incident occurs at Engro chemical plant
KARACHI: Engro Polymer and Chemcial said that an isolated incident of gas leak occurred it plant at Port Qasim on Friday morning.
In a statement the company said that it was gathering complete details related to the incident.
“Based on initial reports, some people have been shifted to a nearby medical facility for treatment of vomiting/nausea condition,” it said.
The company’s staff is accompanying these people to ensure that they receive adequate medical treatment, it said. “No injuries or fatalities have been reported,” the company added.
It further said that specific areas of the plant have been taken offline as a precautionary measure, and the company will conduct a complete and thorough investigation into the incident and will keep the stock exchange informed with any material developments in the matter.
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Engro wins UN business sustainability award
KARACHI: Engro Corporation has won the first prize for ‘Living the UN Global Compact Business Sustainability Award 2019’ in the Large National Category, for the second year in a row, a statement said on Tuesday.
The company has been awarded in recognition of promoting UNGC Principles and Sustainable Development Goals.
The award was presented at the Business Sustainability Moot and Living the Global Compact Best Practices Sustainability Award ceremony, organized by Global Compact Network Pakistan.
The Award signifies Engro’s continued commitment towards UNGC principles in the areas of governance, human rights, labour rights, environment, and anti-corruption.
Through its CSR arm of Engro Foundation, the Company has adopted an inclusive business model approach that targets low-income communities where its businesses are based.
This approach enables underprivileged members of the society to emerge as potential business partners and become vendors, customers and employees in Engro’s business value chains.
Further, Engro Foundation’s strategic community investments are focused on the provision of quality education, health and livelihoods to underprivileged communities across Pakistan.
Sharing his thoughts on receiving the Award, Favad Soomro, Head of Engro Foundation, said: “It is a matter of great honour for Engro to win the UNGC award for second year in a row. The Company stands committed to upholding the UNGC principles and maximizing its social and economic impact for a more prosperous Pakistan.”
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Engro Corp declares 32% revenue growth
KARACHI: Engro Corporation has posted consolidated annual revenue growth of 32 percent for the period ended December 31, 2019 as compared with the revenue of the last year.
The significant growth in revenue mainly driven by energy projects in Thar coming online during July 2019 and augmented by higher turnover of Fertilizers and Petrochemicals businesses, a statement said on Friday.
The Company posted a consolidated profit after tax (PAT) of Rs30.288 billion compared to Rs23.632 billion for last year. Profit attributable to the owners was recorded at Rs16.533 billion compared to Rs12.708 billion for last year.
This growth in profitability is after accounting for a provision of Rs1.224 billion relating to impairment of the Company’s investment in FrieslandCampina Engro Pakistan Limited, under the requirements of International Accounting Standard 36 (Impairment of Assets).
On a standalone basis, the Company posted a PAT of Rs14.303 billion against Rs12.720 billion for the comparative year, translating into earnings per share of Rs24.83 per share. This increase is primarily attributed to higher dividends from subsidiaries as well as higher interest income on investable reserves.
The company announced a final cash dividend of Re1.00 per share for the fourth quarter, bringing the cumulative payout for the year to Rs24.00 per share.
Fertilizer business achieved a historic milestone of highest ever Urea production of 2 million tons due to better plant efficiency and higher gas availability.
This, coupled with higher fertilizer prices, has resulted in an increase of 11 percent in sales revenue over the prior year.
The business recorded a PAT of Rs16.871 billion – down by 3 percent from last year – decrease mainly attributed to a one-off deferred tax impact of higher future corporate tax rates introduced through Finance Act, 2019.
Urea prices are expected to remain under pressure following a prospective reduction in GIDC. In response to this reduction, the business passed on the benefit to the end consumer through a price reduction of Rs160/bag.
Furthermore, the fertilizer industry continues to face challenges in the recovery of long outstanding subsidy and retrospective settlement of GIDC.
Polymer business recorded a revenue growth of 7 percent, while PAT was Rs3.661 billion compared to Rs4.930 billion for last year.
This fall in profits is attributable to inflationary impacts in the form of higher energy prices and interest rates coupled with one-off gains recorded in 2018.
In line with its long-term strategy, the business successfully initiated commercial production and commenced exports from its Caustic Flake plant.
Development of the 3.8 Mt per annum mine at Thar concluded with the successful ‘Test on Completion’ on June 3, 2019. Thereafter, Commercial Operations Date (COD) was declared on July 10, 2019 for both mining and power projects and the Thar power plant has been running smoothly ever since.
Further, the project commenced construction of Phase II of the mine expansion and achieved Financial Close on December 31, 2019, which will enhance production of coal from the mine to 7.6 Mt per annum.
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Engro starts commercial operation of 660MW coal-fired power project
KARACHI: Engro Powergen Thar (Private) Limited on Wednesday started commercial operation of its 660 Megawatts Coal-Fired power generation complex at Thar Block-II, District Tharparkar, Sindh.
In a notice to Pakistan Stock Exchange (PSX), Engro Corp said that a power purchase agreement on May 04, 2015 was entered into between Engro Energy Limited (EEL’s) subsidiary EPTL and the National Transmission and Dispatch Company Limited, through its Central Power Purchasing Agency on behalf of ex-WAPDA Distribution Companies, in relation to EPTL’s 660 MW (Gross) coal fired power generation complex at Thar Block-II, District Tharparkar, Province of Sindh, Pakistan.
It said that pursuant to the terms of PPA, EPTL has declared the commercial operation date of the project with effect from July 10, 2019.
Furthermore, EEL’s associated company, namely, Sindh Engro Coal Mining Company Limited (a joint venture between Sindh government, EEL, Thal Limited, Hub Power Company Limited, Habib Bank Limited, CMEC Thar Mining Investment Limited and Houlinhe Open Pit Coal Investment Company) (SECMC) has also declared its commercial operation on the COD date and SECMC shall start the supply of Thar coal to EPTL for its project.
The company said that the projects would usher in a new era of energy security and prosperity for Pakistan which would not have been possible without the support extended by the provincial and federal governments and all other private stakeholders.
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Engro Fertilizers, DFAT train over 4,000 smallholder farmers
LAHORE: Engro Fertilizers Limited, Engro Foundation and the Department of Foreign Aid and Trade (DFAT), Government of Australia have successfully trained more than 4,000 smallholder farmers so far, including 600 women, on quality certified seed use over two years.
Additionally, the project has developed approximately 290 enterprising smallholder farmers, 124 among whom are women, to produce their own quality farm-saved seed for further exchange, distribution and selling among the fellow farmers in nearby villages.
Co-funded by Engro Fertilizers Limited and the Department of Foreign Aid and Trade (DFAT), Government of Australia, Partnerships and Value Expansion in Seeds Value Chain (PAVE) project aims to build capacities of smallholder farmers to become high-skilled seed multipliers and become part of seed supply chain, as well as using certified seed in their regular cropping to earn higher incomes.
For this successful project, Engro Fertilizers Limited and Engro Foundation have also received an international award at the Asia Responsible Enterprise Awards (AREA) 2019 in Taipei, Taiwan.
Sharing his thoughts on this achievement, Nadir Salar Qureshi, CEO of Engro Fertilizers, said, “At Engro Fertilizers, our goal is to promote food security in Pakistan by empowering smallholder farmers to implement sound agricultural practices, and to equip them to overcome barriers of entry in the marketplace. PAVE is a much-needed initiative in this direction.” He added, “AREA 2019 recognizes some of the most impressive business practices in the region, and we are humbled to be named alongside some very laudable sustainability initiatives.”
PAVE successfully completed its first year of operations in March 2019 and is running under the leadership of Engro Fertilizers’ Crop Sciences Division in partnership with Engro Foundation and Mennonite Economic Development Associates (MEDA), Canada – an implementing partner in the project.
Regarded as the top corporate social responsibility (CSR) awards in Asia, AREA is organized annually by Enterprise Asia, a leading non-governmental organization for responsible entrepreneurship in Asia. AREA aims to recognize and honour Asian businesses and leaders for championing sustainable and socially responsible business practices.
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Engro Corp announces Rs7.5 billion investment in telecom infrastructure
KARACHI: Pakistan’s premier conglomerate, Engro Corporation, has announced investment in telecom infrastructure.
The investment has been approved by board of directors of the corp. in its meeting held on April 25, 2019. The BoD also approved financial results for the quarter ended March 31, 2019.
Engro Corporation, in light of its long-term strategy, has streamlined its businesses in four verticals namely Food & Agriculture, Energy & Related Infrastructure, Petrochemicals and Telecommunications Infrastructure; focused on creating value and helping Pakistan resolve these pressing issues.
In order to develop potential business opportunities in the telecommunications infrastructure vertical, the Company had earlier set up Enfrashare (Private) Limited.
Enfrashare will accelerate development of the country’s connectivity infrastructure, thereby providing an opportunity for people to be part of the new digital era.
As an initial investment, Enfrashare will engage in the acquisition & construction of shared telecom towers, provision of various telecommunication infrastructure & related services, including state of the art network monitoring solutions.
“To enable this, the Directors have approved an investment of Rs7.5 billion in this vertical,” a statement said on Friday.
Ghias Khan, President & CEO Engro Corporation said: “Investments in energy, telecommunications infrastructure, petrochemicals and food and agriculture can accelerate change, help towards increasing exports, substitution of imports, industrialization in the country, job creation and hence build a stronger Pakistan.”
“Engro Corporation will continue to explore investment opportunities across these four identified verticals with a focus to improve the lives of our stakeholders and communities in which we live and work with a culture founded on truth, trust and a relentless pursuit of excellence.”
Furthermore, to continue building on Engro’s experience in the Petrochemical sector and keeping with its strategic ambitions that the Company will seek investment opportunities in this vertical, the Board of Directors approved the commencement of a feasibility study of a polypropylene facility based on a propane dehydrogenation plant.
This will also enable the company to initiate discussions with potential partners and/or stakeholders for developing this project.
Investment in the Petrochemical sector will create opportunities for both substituting the imports & enhancing the export potential, thus help in building foreign currency reserves of the country.
Simultaneously with a view to expand its footprint outside Pakistan and to explore potential trading opportunities, the Board has also approved the acquisition of 100 percent shares of Engro Eximp FZE, a wholly owned subsidiary of Engro Fertilizers Limited, for Rs1.76 Billion (subject to adjustments at the date of closing of the transaction and corporate approvals).
The company’s consolidated revenue grew by 21 percent in comparison to the prior period, driven by higher Urea sales in the Fertilizer business.
The Company posted a consolidated profit-after-tax (PAT) of Rs6,565 million compared to PKR 6,837 million for the prior period.
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Engro Corp announces 35 percent surge in annual profit
KARACHI: Engro Corporation Limited (ENGRO) has announced 35 percent surge in profit after tax to Rs12.71 billion for calendar year 2018 as compared with Rs9.41 billion in the preceding year.
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