Engro Fertilizers Ltd. · PSX:EFERT
Engro Fertilizers — Q1 2014 Earnings Presentation
7 slides from Engro Fertilizers's earnings presentation, April 2014
Slide 1: Raising Growth: Analyst Briefing 1Q 2014 Business Results
Raising Analyst Briefing Growth 1Q 2014 Business Results Security Analyst Briefing 1Q 2014
Slide 2: Urea Market Environment
U REA M ARKET E NVIRONMENT Industry sales Urea Urea remained fairly stable Industry 1Q 1Q (1.36MT vs. 1.34MT) (million 2014 2013 because of stable 4% 19% EFERT Tons) commodity prices and 1% 33% FFC agricultural output. 0% Agri Tech Production 1.1 1.0 DH Sale of branded urea RG Sales 1.4 1.3 increase
Slide 3: Urea Market Environment
U REA M ARKET E NVIRONMENT • Total urea production increased by 7% due to improved gas availability to fertilizers sector by the Government • Consequently, the burden on national exchequer was reduced. The benefit passed on by the local producers to the farmers in 1Q 2014 is around Rs 17 billion • G
Slide 4: Business Highlights
B USINESS H IGHLIGHTS Engro Fertilizers 1Q 2014 1Q 2013 Urea Sales (KT) Zarkhez/ENP Sales Volume (KT) 451 Revenue (PKR b) 15.0 9.8 298 EBITDA (PKR b) 5.6 4.6 PAT (PKR b) 1.4 0.6 26 21 EPS (PKR / share) 1.12 0.57 Actual 1Q 2014 Actual 1Q 2013 • PAT of PKR 1,437 M vs. PKR 646 M in 1Q 2013 • Production
Slide 5: Gas
G AS • Both plants are in operation since July 2013 due to availability of gas from Guddu • Pursuing Long Term Gas Allocation and specifically KPD allocation to fertilizer sector is still pending with the ministry for ratification. We are also evaluating various options such as permanent allocation
Slide 6: Outlook
O UTLOOK • Local urea demand is expected to remain stable because of stable commodity prices and agricultural output • Temporary gas allocation of 60 mmscfd from Mari is likely to continue in the short term due to Government’s desire to reduce urea imports Security Analyst Briefing 1Q 2014
Slide 7: Q&A Thank You
Q&A Thank You Security Analyst Briefing 1Q 2014