Karachi June 12 2023: ENGRO Terminal business announced interim dividend of PKR 40 billion for the period ending December 31, 2023 (1Q 2023), according to company financials.
The total dividend paid by ENGRO subsidiaries for the first quarter 2023 is PKR 46.0 billion out of which ENGRO’s share is PKR 25.7 billion.
Resultantly, ENGRO paid interim cash dividend of PKR 40.00 per share for the period ending December 31, 2023.
The Board of Directors of Elengy Terminal Pakistan Limited, a subsidiary company, in its meeting held on April 13, 2023 has proposed an interim cash dividend of PKR 193.54 per share for the period ending December 31, 2023, amounting to PKR 39,225,304 of which the proportionate share of the Company amounts to PKR 21,965,577.
The LNG terminal handled 74 vessels and delivered 219 bcf re-gasified LNG to the SSGC network, accounting for 13%-15% of the total gas supply in Pakistan, with an availability factor of 97.6%. The LNG terminal is working to alleviate energy shortages. As the market’s demand for energy grows, we will continue to explore new opportunities to increase shareholder value.
The Board of Directors of Engro Vopak Terminal Limited, a joint venture company, in its meeting held on April 17, 2023 has proposed an interim cash dividend of PKR 13.50 per share for the period ending December 31, 2023, amounting to PKR 1,215,000 of which the proportionate share of the Company amounts to PKR 607,500.
Engro Vopak Terminal recorded its highest-ever volumetric increase in chemical handling to 1,331 KT, against 1,280 KT last year. This can be attributed mainly to higher imports of phosphoric acid and paraxylene, which were offset by lower LPG marine imports of 32% over last year, driven by the reopening of the Taftan Border. Overall profitability of the terminal business was impacted slightly by the imposition of the Super Tax during 2022. But the business successfully completed 25 years of safe operations without lost work or injuries, maintaining exceptional health, safety, and quality standards.
The Board of Directors of Engro Polymer and Chemicals Limited, a subsidiary company, in its meeting held on April 14, 2023 has proposed an interim cash dividend of PKR1.00 per share for the period ending December 31, 2023, amounting to PKR 908,923 of which the proportionate share of the Company amounts to PKR 510,733.
The Polymer business recorded a revenue of PKR 17,978 million compared to revenue of PKR 23,127 million in the same period last year. The Company’s PAT stood at PKR 1,183 million against PKR 4,714 million in the same period last year, mainly attributable to commodity cycle reversal.
The business recorded domestic sales of 46 KT, translating to a market share of 87% versus 62 KT and a market share of 96% in the same period last year. As a result, the business has enabled import substitution of USD 23 million. Post serving the local PVC demand, the business export sales stood at 8 KT, including caustic soda exports of 3 KT, generating foreign exchange of USD 6 million for the quarter.
The Board of Directors of Engro Fertilizers Limited, a subsidiary company, in its meeting held on April 14, 2023 has proposed an interim cash dividend of PKR 3.50 per share for the period ending December 31, 2023, amounting to PKR 4,673,548 of which the proportionate share of the Company amounts to PKR 2,629,592.
Fertilizer business showed strong performance and recorded a revenue of PKR 43,991 million compared to PKR 36,813 million in Q1 2022, primarily driven by increase in urea price. The Company’s PAT stood at PKR 4,404 million versus PKR 5,511 million in the same period last year, mainly affected by higher gas prices and lower margins on phosphate.
Urea sales during the period stood at 551 KT vs 549 KT, translating to a market share of 34% for the period. Phosphate sales stood at 65 KT vs 79 KT during the same period in 2022.
International Urea price witnessed a massive decrease, falling to USD 253/ton (landed equivalent PKR 4,715/bag) amidst lower energy prices by the end of March 2023 compared to USD 456/T (landed cost equivalent to PKR 6,705/bag) at the end of December 2022. International phosphate prices decreased to USD 603/T on the back of decline in global crop prices. In the midst of global commodity price volatility, the local fertilizer industry ensured availability of locally produced urea to farmers at a significant discount of ~37% over international prices. This enabled import substitution to the tune of USD 410 million in this quarter, wherein Engro Fertilizers’ contribution stood at USD 139 million.
