Engro Fertilizers Ltd. · PSX:EFERT
Engro Fertilizers — Q1 2016 Earnings Presentation
8 slides from Engro Fertilizers's earnings presentation, 2016
Slide 1: Analyst Briefing 1Q 2016
ANALYST BRIEFING 1Q 2016
Slide 2: Urea Market Environment
UREA MARKET ENVIRONMENT Urea offtake has been at record low for 1Q2016 where industry urea sales 1Q 1Q Urea Industry (MT) Change clocked in at 767KT, down 49% vs 1,510KT in 1Q2015 2016 2015 This has been mainly due to poor crop economics, low international prices Opening Inventory 0.6 0.2 and su
Slide 3: Phosphates Market Environment
PHOSPHATES MARKET ENVIRONMENT Local industry sales were at 236KT vs. 186KT last year (growth of 27%) mainly due to softening of phosphate Phosphate Prices (USD/T) prices and subsidy on phosphates 500 EFERT sold 65 KT of DAP in 1Q2016 vs. 36 KT in 1Q 2015 400 which also resulted in an improved ma
Slide 4: Zarkhez Market Environment
ZARKHEZ MARKET ENVIRONMENT Potash industry in 2016 declined by 9% YoY due to poor Potash Prices (USD/T) crop economics and availability of cheaper straight fertilizers 310 290 However, the market share of Zarkhez increased to 49% 270 (43% in 1Q 2015) contributing to a lower than industry 250 2Q
Slide 5: Gas Update
GAS UPDATE On February 22, 2016, ECC permanently reallocated 60 MMSCFD gas back to the fertilizer sector (in line with the original curtailment). EFERT’s share is 12.5 MMSCFD out of the 60 MMSCFD EFERT is in discussion with relevant quarters for allocation of surplus gas to ensure continued two
Slide 6: Business Highlights
BUSINESS HIGHLIGHTS EFERT 1Q 2016 PAT stood at PKR 2.1 B vs PKR 3.1 B in 1Q 2015 Engro Fertilizers 1Q 2016 1Q 2015 Standalone (PKR M) 1Q2016 urea production stood at 514 KT, compared to 486 KT in 1Q 2015 mainly due to better gas availability Revenue 12,605 17,673 Gross Profit 4,938 6,770 Howev
Slide 7: Outlook
OUTLOOK Local urea demand is likely to pick up due to Kharif season for which the industry is supplied with adequate inventory Given the better gas availability due to additional gas from Mari and LNG, the industry will continue to remain in a long supply situation The company continues to neg
Slide 8: Thank You Q&A
THANK YOU Q&A Security Analyst Briefing 1Q 2016