Engro Fertilizers Ltd. · PSX:EFERT
Engro Fertilizers — H1 2015 Earnings Presentation
10 slides from Engro Fertilizers's earnings presentation, 2015
Slide 1: Analyst Briefing 1H 2015 Business Results
Analyst Briefing 1H 2015 Business Results Security Analyst Briefing 1H 2015
Slide 2: Urea Market Environment
U REA M ARKET E NVIRONMENT Domestic urea production rose by 7% vs 1H 2014; Urea Industry 1H 2015 1H 2014 Change (MT) led by better capacity utilization Opening Overall urea sales rose sharply by 12% attributed to Inventory 0.2 0.3 the following Production 2.5 2.3 7% Spillover sales from last y
Slide 3: Urea Market Environment
U REA M ARKET E NVIRONMENT 1H 2015* Farmer Subsidy (PKR B) 14% 0% 33% 8% GoP Subsidy - 4 Domestic GoP Subsidy on Imports Benefit by Fertilizer 11 3 Industry to farmer 46% Engro Fauji Fatima AgriTech NFML Urea market shares are broadly unchanged Benefit passed on by local urea producers from last yea
Slide 4: Phosphates Market Environment
P HOSPHATES M ARKET E NVIRONMENT International DAP prices (CFR Karachi) have Phosphate Prices (USD/T) remained relatively stable since Dec 2014, around 600 the USD 490/ton mark 550 500 450 Total DAP off take grew by 20% vs 1H 2014 400 primarily due to low base effect of 2014 sales that 350 were
Slide 5: Zarkhez Market Environment
Z ARKHEZ M ARKET E NVIRONMENT MOP pricing remained stable since December 2014 Potash Prices (USD/T) 350 The Potash market grew by 22% YoY due to slightly lower prices and direct marketing of MOP in the 300 industry 250 Zarkhez volumes stood stable at 29 KT vs 29 KT in 200 1H 2014 as the compan
Slide 6: Gas Update
G AS U PDATE Gas for both plants has remained available continuously and Gas Available Days is likely to remain so until 31st December 2015 (2 Plant Operation) 200 Implementation of compressors for Guddu has been 150 completed and subsequently Guddu has been able to increase its power output sub
Slide 7: Business Highlights
B USINESS H IGHLIGHTS EFERT 1H 2015 standalone PAT stood at PKR 7.1 B Engro Fertilizers 1H 1H vs PKR 3.4 B in 1H 2014 Standalone (PKR M) 2015 2014 Revenue 38,059 27,657 The company announced a cash dividend of PKR 1.50 per share Gross Profit 14,090 9,873 Finance Cost (2,396) (3,113) Better fin
Slide 8: One Off Impacts
O NE O FF I MPACTS PAT Impact Engro Fertilizers Standalone (PKR M) Expense booked against Guddu compressors (Pre-Tax PKR 925M) (577) Reduction in Tax Rates from 33% to 30% as per Finance Act 1,165 Super Tax Imposition on 2014 Profits as per Finance Act (357) Tax Charge related to IFC Conversion (548
Slide 9: Outlook
O UTLOOK Production is expected to remain stable during the rest of the year given continued availability of gas for both plants The company continues to negotiate with the government for availability of gas for both plants beyond 2015 Given current urea demand supply situation, it is likely t
Slide 10: Q&A Thank You
Q&A Thank You Security Analyst Briefing 1H 2015