Engro Fertilizers Ltd. · PSX:EFERT
Engro Fertilizers — FY2017 Earnings Presentation
8 slides from Engro Fertilizers's earnings presentation, 2018
Slide 1: Analyst Briefing FY 2017
ANALYST BRIEFING FY 2017
Slide 2: Urea Market Environment
UREA MARKET ENVIRONMENT Industry Urea sales for FY 2017 clocked in at 5,826KT vs 5,485 KT in FY 2016 (increase of ~6.2% YoY) Urea Industry Change (KT) FY 2017 FY 2016 Higher sales were a result of lower urea prices prevailing throughout 2017 vs LY & Opening Inv. 1,058 561 improved agronomic dema
Slide 3: Phosphates Market Environment
PHOSPHATES MARKET ENVIRONMENT FY 2017 industry sales stood at 2,343 KT compared to 2,225 KT in FY 2016, a growth of 5% YoY Phosphate Prices (CFR) 600 Higher industry sales were primarily due to improved farmer economics500 400 along with continuation of subsidy on phosphates 300 200 EFERT DAP
Slide 4: Zarkhez Market Environment
ZARKHEZ MARKET ENVIRONMENT Total sales for ZBU stood at 144 KT vs 2016 sales of 114 KT (higher Potash Price (CFR) by 26% YOY) 370 Higher sales are attributable to 50% increase in potash market (2017: 48 KT vs. 2016: 32 KT) vs last year and were further buoyed 320 by lower potash prices, subsidy
Slide 5: Business Highlights
BUSINESS HIGHLIGHTS For FY 2017, the Company has declared Profit after Tax of PKR 11,156 M, an increase of 20% over PKR PKR M 2017 2016 9,283M million earned in 2016 Total Revenue 77,129 69,537 Higher profitability was led by higher offtake as well Gross Profit 23,219 17,439 as exports of 223KT
Slide 6: Updates
UPDATES All key terms agreed with Mari with respect to 26 MMSCFD term sheet. Term sheet signed by both parties and circulated to OGRA for approval. GIDC on all non-concessionary gases is being accrued , but payment is being withheld due to litigation, in line with industry practice GIDC on con
Slide 7: Outlook
OUTLOOK Globally, urea demand in 2018 is expected to grow marginally by 1.7%, while supply is expected to trend moderately higher with new capacities entering the global market International urea prices have lately stabilized around USD 255/T (translating to a landed equivalent of PKR 1,730/bag)
Slide 8: Thank You Q & A
THANK YOU Q&A Security Analyst Briefing Security Analyst Briefing FY2017 FY 2016