Engro Fertilizers Ltd. · PSX:EFERT
Engro Fertilizers — H1 2016 Earnings Presentation
7 slides from Engro Fertilizers's earnings presentation, 2016
Slide 1: Analyst Briefing 1H 2016
ANALYST BRIEFING 1H 2016
Slide 2: Urea Market Environment
UREA MARKET ENVIRONMENT The fertilizer market as a whole remained weak in 1H 2016 with total urea volumes at 1,851KT – a decline of 35% from 1H 2015 volumes of 2,865KT Urea Industry 1H 1H Change (KT) 2016 2015 The decline was primarily on account of i) weak farmer purchase power given frail crop
Slide 3: Phosphates Market Environment
PHOSPHATES MARKET ENVIRONMENT 1H 2016 industry sales stood at 498 KT compared to 468 KT in 1H Phosphate Prices (USD/T) 2015, a growth of 6%. Higher industry sales were primarily due to subsidy on phosphates during the year 500 EFERT DAP sales in 1H 2016 were recorded at 128 KT vs 119KT in 1 H 40
Slide 4: Zarkhez Market Environment
ZARKHEZ MARKET ENVIRONMENT Potash industry in 1H 2016 declined by 29% YoY due to poor crop Potash Prices (USD/T) economics and no subsidy on potash fertilizers However, the market share of Zarkhez increased to 45% (34% in 300 2015) contributing to a lower than industry decline in actual 250 sale
Slide 5: Business Highlights
BUSINESS HIGHLIGHTS Engro Fertilizers 1H 2016 1H 2015 EFERT 1H 2016 PAT stood at PKR 2.8 B vs PKR 6.8 B in 1H 2015 Standalone (PKR M) The drop in profitability is driven by both – decreased volumes as well as Revenue 22,278 38,302 margins due to price cuts taken during the year Gross Profit 6,65
Slide 6: Updates & Outlook
UPDATES & OUTLOOK Updates As things stand, EFERT continues to operate both its plants pending a formal gas allocation At the same time, the company is also paying GIDC on current billing excluding concessionary gas With regards to the latter, EFERT obtained a stay order in 2015 and as such, no
Slide 7: Thank You Q&A
THANK YOU Q&A Security Analyst Briefing 1H 2016