Slide 1: Agenda
Engro Fertilizers Limited – Security Analyst Briefing Q2 2024 Agenda 1 EFERT Highlights Industry & EFERT Business 2 Performance 3 Contributions & Challenges 4 Way Forward 5 Q&A Session www.engro.com
Slide 2: 1. EFERT Highlights
Q3 2023 Analyst Engro BriefingLimited – Security Analyst Briefing Q2 2024 Fertilizers 1. EFERT Highlights www.engro.com
Slide 3: Financial Highlights
Engro Fertilizers Limited – Security Analyst Briefing Q2 2024 Financial Highlights YTD Financial Revenue Profitability EPS Highlights PKR 113.2 bn PKR 9.4 Bn PKR 7.06 /share 38% vs SPLY 71% vs SPLY vs. 4.09 SPLY Quarterly Financial Revenue Profitability EPS Highlights PKR 39.4 bn PKR 1.7 Bn PKR 1.25
Slide 4: EnVen Plant TA 2024 – Major Jobs and Challenges
Engro Fertilizers Limited – Security Analyst Briefing Q2 2024 EnVen Plant TA 2024 – Major Jobs and Challenges Major Jobs Monumental Turnaround was accomplished in 55 days. Waste Heat Boiler Syn turbine steam nozzle Furnace Steam Coil (KS Coil) Ammonia Storage Tank Replacement Replacement Replacement
Slide 5: Key Indicators vs Last Year – Q2
Engro Fertilizers Limited – Security Analyst Briefing Q1 2024 Key Indicators vs Last Year – Q2 17% 41% 74% Higher Phosphates Specialty Fertilizer Higher Finance Cost Volumes Volume Growth www.engro.com 5
Slide 6: Agronomy Update and Farm Economics
Engro Fertilizers Limited Agronomy Update and Farm Economics Rabi Season - (November – April) WHEAT • Wheat cultivation increased by 1.5M acres backed by strong sentiment on support price / govt. procurement. • With govt. opting out of the procurement at harvesting in April, the market price fell to
Slide 7: Urea Production & Sales Q2 2024
Engro Fertilizers Limited – Security Analyst Briefing Q2 2024 Urea Production & Sales Q2 2024 UREA – Q2 PRODUCTION' KT UREA – Q2 SALES' KT 678 564 547 550 539 533 518 460 361 281 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 UREA – H1 PRODUCTION' KT UREA – H1 SALES' KT 1,136 1,118 1,115 1,115 1,
Slide 8: 2. Industry & EFERT Business Performance
Q3 2023 Analyst Engro BriefingLimited – Security Analyst Briefing Q2 2024 Fertilizers 2. Industry & EFERT Business Performance www.engro.com
Slide 9: Urea Industry & Market Share Q2 2024
Engro Fertilizers Limited – Security Analyst Briefing Q2 2024 Urea Industry & Market Share Q2 2024 Urea Industry Sales Urea Market Share 1,478 5% 4% 6% 9% 1,209 52% 64% 34% 26% 2023 2024 EFERT FFC Fatima Agri-tech Urea Demand FY OL 2023 2024 www.engro.com Urea industry has declined by 18% Urea marke
Slide 10: DAP Industry & Market Share Q2 2024
Engro Fertilizers Limited – Security Analyst Briefing Q2 2024 DAP Industry & Market Share Q2 2024 DAP Industry Sales DAP Market Share 0% 265 2% 17% 5% 246 81% 65% 14% 17% Q2 2023 Q2 2024 2023 2024 EFERT FFC Fatima Private DAP industry has declined by 7% DAP market share improved by 3% www.engro.com
Slide 11: 3. Contributions & Challenges
Q3 2023 Analyst Engro BriefingLimited – Security Analyst Briefing Q2 2024 Fertilizers 3.Contributions & Challenges www.engro.com
Slide 12: Contributing to the Nation
Engro Fertilizers Limited – Security Analyst Briefing Q2 2024 Contributing to the Nation 1. Imported Urea purchase from the Government 2. Contribution to the National Exchequer • EFERT along with other Fertilizer players • The Company contributed ~PKR 28.75 Bn towards supported the GOP by uplifting
Slide 13: Fertilizer Sector - shielding farmers from higher costs of International Urea
Engro Fertilizers Limited – Security Analyst Briefing Q2 2024 Fertilizer Sector - shielding farmers from higher costs of International Urea Urea Prices - Local & International 10,000 7,909 8,000 6,862 6,568 6,298 5,802 5,777 6,000 PKR/Bag 4,549 4,549 4,000 3,496 3,311 2,894 2,894 2,000 - Q1 2023 Q2
Slide 14: Gas Pricing Snapshot
Engro Fertilizers Limited – Security Analyst Briefing Q2 2024 Gas Pricing Snapshot Gas price increase is only for 40% represents major players, 60% of the sector. Remaining i.e. FFC and Fatima. 40% remain at PKR 580/MMBtu. This gas price increase has resulted in gas cost disparity. It now costs Engr
Slide 15: 4. Way Forward
Q3 2023 Analyst Engro BriefingLimited – Security Analyst Briefing Q2 2024 Fertilizers 4. Way Forward www.engro.com
Slide 16: Way Forward: Pressure Enhancement Facility
Engro Fertilizers Limited – Security Analyst Briefing Q2 2024 Way Forward Pressure Enhancement Facility • USD 300Mn CAPEX by the fertilizer industry to enhance gas pressure from Mari field, thereby securing long term sustainability of company operations • Phase 1: 85% complete. Expected 100% complet
Slide 17: Q&A Session
Session