Engro Fertilizers Ltd. · PSX:EFERT
Engro Fertilizers — 9M 2018 Earnings Presentation
9 slides from Engro Fertilizers's earnings presentation, 2018
Slide 1: Analyst Briefing 9M 2018
ANALYST BRIEFING 9M 2018
Slide 2: Urea Market Environment
UREA MARKET ENVIRONMENT Domestic Urea sales for 9M 2018 clocked in at 4,132 KT vs 4,088 KT in 9M 2017 (up Urea ~1%) Industry (KT) 9M 2018 9M 2017 Change The Industry also exported 75KT (EFERT share 12KT) in 9M 2018 and vs, 570 KT in 2017 Opening 260 1,043 Inv. EFERT 9M 2018 domestic sales were
Slide 3: Urea Market Environment-Cont'd
UREA MARKET ENVIRONMENT-Cont’d On the subject of farmer economics, higher cotton prices throughout the season coupled with good crop yields and rising prices of rice, resulted in increase in farmer earnings as compared to last year. For sugarcane however, despite good crop and production, farmer i
Slide 4: Phosphates Market Environment
PHOSPHATES MARKET ENVIRONMENT 9M 2018 industry sales stood at 1,236 KT vs 1,279 KT SPLY (decline of 3% YoY) DAP Prices (CFR) USD/t 600 Lower industry sales during 9M 2018 was due to abnormally high sales LY, in 500 467 481 494 492 488 477 430 426 429 434 399 anticipation of rise in local prices
Slide 5: Speciality Fertilizer Business
SPECIALITY FERTILIZER BUSINESS Major products of SFB include Zarkhez (NPKs), NP and other specialized Potash Prices (CFR) USD/t products 350 300 315 310 301 293 286 285 300 270 253 255 234 225 226 231 238 240 246 Total sales for SFB stood at 145 KT vs 9M 2017 sales of 103 KT an 250 increase of 4
Slide 6: Business Highlights
BUSINESS HIGHLIGHTS For 9M 2018, EFERT’s Profit After Tax (PAT) stood at PKR 12,249 M vs 9M 2017 PAT of PKR 6,924 M PKR M 9M 2018 9M 2017 Total Revenue 69,979 51,970 Higher profitability was led by Gross Profit 23,896 14,933 Higher urea and DAP offtake; Finance Cost (1,420) (2,003) Higher do
Slide 7: Other Business Updates
OTHER BUSINESS UPDATES The Company continued to expand its footprint in the Crop Sciences business and earned a revenue of PKR 371 M in YTD 2018 from Crop Science business The Company, in its efforts to improve farmer economics, initiated Pilot phase of Project Rahbar in Rabi Wheat Season 2017/1
Slide 8: Outlook
OUTLOOK IRSA has projected water avails of 23.1 MAF for upcoming Rabi (38% short vs average system use and 4% lower than last year). This, along with increase in fertilizer prices, is expected to negatively impact fertilizer demand going forward but with the current demand supply dynamics, no sign
Slide 9: Thank You Q&A
THANK YOU Q&A Security Analyst Briefing Security Analyst Briefing 9MFY2018 2016