Slide 1: Analyst Briefing 9M 2017
ANALYST BRIEFING 9M 2017
Slide 2: Urea Market Environment
UREA MARKET ENVIRONMENT Industry Urea sales for 9M clocked in at 4,088KT vs 3,472 KT in 9M 2016 (increase of ~18% YoY). Urea Industry Change (KT) 9M 2017 9M 2016 Higher sales were due to lower urea prices, improved agronomics and expectation of Opening Inv. 1,043 558 price increase during 4Q Pro
Slide 3: Phosphates Market Environment
PHOSPHATES MARKET ENVIRONMENT 9M 2017 industry sales stood at 1,247 KT compared to 922 KT in 9M 2016 Growth of 35% YoY is due to improved farmer economics along with continuation of subsidy on phosphates EFERT DAP sales in 9M2017 were recorded at 234 KT, down 11.5% YoY. YTD EFERT DAP market sh
Slide 4: Zarkhez Market Environment
ZARKHEZ MARKET ENVIRONMENT Total sales for ZBU stood at 101 KT vs 9M 2016 sales of 71 KT (higher by 42% YOY) Higher sales were due to YTD potash market increasing by 43% vs last year buoyed by lower potash prices, subsidy on potash and improved farmer economics EFERT’s market share YTD clocked
Slide 5: Business Highlights
BUSINESS HIGHLIGHTS For 9M 2017, the Company has declared Profit after tax of PKR 6,924M, an increase of 21% over PKR PKR M 9M 2017 9M 2016 5,745M million earned in 9M 2016 Total Revenue 48,473 40,910 Higher profitability was led by higher offtakes as well Gross Profit 14,933 11,575 as exports o
Slide 6: Updates
UPDATES Plant I is shut down for maintenance and will resume production by second week of November GIDC on all non-concessionary gases is being accrued , but payment is being withheld due to litigation, in line with industry practice However, GIDC on concessionary gas is a separate legal matte
Slide 7: Outlook
OUTLOOK Improved farmer income coupled with lower urea prices will continue to support local urea demand during the upcoming season. We expect closing inventory to fall significantly to ~400 to~500KT by end of 2017 International urea prices are expected to stabilize in Q4 after a spike in the
Slide 8: Thank You Q&A
THANK YOU Q&A Security Analyst Briefing Security Analyst Briefing FY 2017 9M 2016