Slide 1: Analyst Briefing 1H 2017
ANALYST BRIEFING 1H 2017 Security Analyst Briefing Picture Credits: Vendant Fertilizers FY 2016
Slide 2: Urea Market Environment
UREA MARKET ENVIRONMENT Industry urea sales clocked in at 2,683 KT vs. 1,824 KT in 1H 2016, i.e. Urea Industry ~47% increase from corresponding period Change (KT) 1H 2017 1H 2016 Improvement in offtakes is mainly due anticipated reduction of subsidy Opening Inv. 1,043 558 from PKR 156/Bag to PKR
Slide 3: Phosphates Market Environment
PHOSPHATES MARKET ENVIRONMENT 1H 2017 industry sales stood at 563 KT compared to 504 KT in 1H Phosphate Prices (USD/T) 2016, an increase of 12% YoY 500 400 Higher industry sales were primarily due to continuation of subsidy on 300 phosphates which led to improved demand 200 100 EFERT sales dur
Slide 4: Zarkhez Market Environment
ZARKHEZ MARKET ENVIRONMENT Potash industry in 1H 2017 increased to 22 KT vs. 11 KT 500 Potash Prices (USD/T) in 1H 2016, buoyed by lower potash prices, subsidy on 400 potash, and improved farmer economics 300 Market share of Engro (Zarkhez & straight potash) was at 200 36% vs. last year at 45% 1
Slide 5: Business Highlights
BUSINESS HIGHLIGHTS For 1H 2017, the Company has declared a Profit after tax of PKR 4,116 million, an increase of 46% over PKR 2,817 PKR M 1H 2017 1H 2016 million earned in 1H 2016 Total Revenue 27,311 22,278 Higher profitability was led by exports and higher sales Gross Profit 8,769 6,656 on th
Slide 6: Updates
UPDATES The Economic Coordination Committee (ECC) has extended exports deadline till October 31, 2017 with an increased quantity of 600KT The Company is currently in discussion with Mari for finalizing term sheet of 26 MMSCFD allocated gas for its old plant. Change in tax regime from NTR to FT
Slide 7: Outlook
OUTLOOK Global urea demand in 2017 is expected to grow marginally, while supply is expected to trend moderately higher, with new capacities coming on line With global markets being under pressure, urea prices are expected to remain soft in 2017 Local urea demand for 2017 is expected to remain
Slide 8: Thank You Q&A
THANK YOU Q&A Security Analyst Briefing Security Analyst Briefing FY2017 1H 2016