Engro Fertilizers Ltd. · PSX:EFERT
Engro Fertilizers — Q1 2018 Earnings Presentation
8 slides from Engro Fertilizers's earnings presentation, 2018
Slide 1: Analyst Briefing 1Q 2018
ANALYST BRIEFING 1Q 2018
Slide 2: Urea Market Environment
UREA MARKET ENVIRONMENT Industry Urea sales in 1Q2018 clocked in at 1,242 KT vs 869 KT SPLY (up ~43% YoY) Urea Industry However, overall demand for Rabi increased only marginally to 2,952KT from 2,882 Change (KT) Q1 2018 Q1 2017 KT LY Opening Inv. 268 1,038 Industry export sales clocked in at
Slide 3: Phosphates Market Environment
PHOSPHATES MARKET ENVIRONMENT 1Q 2018 industry sales stood at 357 KT compared to 312 KT SPLY, a growth of Phosphate Prices (CFR) 14% YoY 600 500 Higher industry sales were primarily due to pre-buying because of rising 400 international prices, despite relatively weaker agronomics 300 200 100 M
Slide 4: Speciality Fertilizer Business
SPECIALITY FERTILIZER BUSINESS Total sales in Q1 2018 for SFB stood at 44 KT vs Q1 2017 sales of 31 KT (higher by 40% YOY) Higher sales were attributable to 7% increase in potash market (Q1 2018: 15 KT vs. Q1 2017: 14 KT) vs SPLY, better avails of MOP/SOP compared to last year and subsidy on NPK
Slide 5: Business Highlights
BUSINESS HIGHLIGHTS For Q1 2018, the Company has declared Profit after Tax PKR M Q1 2018 Q1 2017 of PKR 3,890 M, an increase of 137% over PKR 1,638M earned in Q1 2017 Total Revenue 18,219 10,064 Higher profitability was led by higher urea offtake, higher Gross Profit 7,331 3,515 domestic prices
Slide 6: Updates
UPDATES GIDC on all non-concessionary gases is being accrued , but payment is being withheld due to litigation, in line with industry practice However, GIDC on concessionary gas is a separate legal matter, and EFERT continues to make no accrual or payments for GIDC Our current Subsidy Receivab
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 Low crop prices and supply side pressure, along with the commissioning of new capacities in India, US and Nigeria are e
Slide 8: Thank You Q&A
THANK YOU Q&A Security Analyst Briefing Security Analyst Briefing Q1FY2018 2016