Engro Polymer & Chemicals Limited · PSX:EPCL
Engro Polymer & Chemicals — FY2014 Earnings Presentation
10 slides from Engro Polymer & Chemicals's earnings presentation, Dec 16, 2015
Slide 1: Analyst Briefing 2014
dolymer & chemicals k ANALYST BRIEFING — 2014 fO Wo
Slide 2: Summary
Summary • In 2014, the Company achieved a revenue of Rs. 23,819 Mn as against 24,781 Mn in 2013 • The Company posted a loss after tax of Rs. 1,109 Mn translating into negative Earnings Per Share of Rs. 1.67 in 2014 as compared to a profit after tax of Rs. 707 Mn and Earning Per Share of Rs. 1.07 in
Slide 3: International Business Context
International Business Context • International PVC Price USD/Ton – In 4Q 2014, PVC prices 1,300 plummeted significantly. The 1040 1043 1029 1,100 phenomena can be 828 attributed to sharp drop in 900 700 feedstock prices and weak demand sentiment post August December March January July September May
Slide 4: Ethylene, Crude oil and PVC
Ethylene, Crude oil and PVC • PVC and Ethylene Prices USD/Ton – PVC and Ethylene are part of 1,600 350 the vinyl chain, price drop on 1,200 300 both ends improved core delta in 4Q on current market 800 250 price levels. However, since March August January June December May July September October Feb
Slide 5: Domestic Market Overview
Domestic Market Overview PVC Caustic • Domestic market remained challenging in 4Q 2014 • Domestic caustic market remained evenhanded in 4Q 2014: – Drop in PVC prices encouraged buyers to adopt wait and see approach on prices. This resulted – The sector remained well supplied in 4Q and in accumulatio
Slide 6: Highlights – Vinyls
Highlights – Vinyls 4Q 2014 4Q 2013 2014 2013 PVC production in KT 44 40 153 146 VCM production in KT 53 46 168 170 PVC Sales in KT Local 34 34 125 139 Export 11 - 21 4 EPCL PVC Base Price ($/MT) 889 1,049 1,030 1,052 EPCL weighted average Ethylene Avg. Price ($/MT) 1,382 1,410 1,439 1,358 PVC – Eth
Slide 7: Highlights – Caustic & Allied
Highlights – Caustic & Allied 4Q 2014 4Q 2013 2014 2013 Caustic Production (KT) 27 31 114 115 Caustic Sales Volume (KT) 24 27 93 100 Caustic Price (Rs/MT) 47,566 51,442 49,176 49,369 Hypo Sales (KT) 6 5 21 21 HCL Sales in (KT) 5 6 17 19 Caustic Domestic Market Share * • The Caustic Soda market size
Slide 8: Financial Highlights
Financial Highlights • Financial Performance PKR Million 2014 2013 Total Revenue 23,819 24,781 Contribution Margin 5,086 7,759 EBITDA 828 4,051 Profit/(Loss) Before Tax (1,528) 1,343 Profit/(Loss) After Tax (1,109) 707 • Variance as compared to 2013 was witnessed on account of: – Lower domestic PVC
Slide 9: Outlook for 1Q 2015
Outlook for 1Q 2015 • Improving PVC prices and stable ethylene prices, have improved the core delta at current international market price levels. EPCL holds sufficient supply of ethylene to ensue smooth operations therefore the price drop in ethylene may not entirely translate into benefit in the sa
Slide 10: Thank You
engro polymer & chemicals Thank You 10
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