Engro Polymer & Chemicals Limited · PSX:EPCL
Engro Polymer & Chemicals — FY2015 Earnings Presentation
10 slides from Engro Polymer & Chemicals's earnings presentation, May 14, 2016
Slide 1: Analyst Briefing – 4Q & FY 2015
ANALYST BRIEFING – 4Q & FY 2015
Slide 2: Summary
Summary • In 4Q 2015, the Company achieved a revenue of Rs 5,200 Mn as against Rs. 6,673 Mn in 4Q 2014 • The Company posted a profit after tax of Rs. 169 Mn as against a loss after tax of Rs. 1,077 Mn in 4Q 2014 • The profit per share for 4Q stood at Rs 0.25 as compared to a loss per share Rs 1.62 i
Slide 3: International Business Context
International Business Context • International PVC Price USD/Ton Q1 Q2 Q3 Q4 – During 4Q, PVC prices posted 1,200 a decrease; dropping to a year 1,000 844 851 low in December 2015 801 722 800 600 November August March July January October December May June September February April 2012 2013 2014 201
Slide 4: Ethylene, Crude oil and PVC
Ethylene, Crude oil and PVC • Analysis of ethylene and crude oil prices USD/Ton USD/bbl – Crude oil and ethylene prices 1,600 1,408 140 decoupled in 4Q, 2015 due to 1,400 110 1,148 1,091 varying supply dynamics. 1,200 80 Supply glut of crude and 1,000 831 800 61 50 restriction of ethylene mainly 56
Slide 5: Domestic Market Overview
Domestic Market Overview PVC Caustic • Domestic market remained strong in 4Q 2015 • Caustic market remained stable in 4Q 2015: – During the quarter, the Company posted a – On a quarterly basis, sales were lower by 21% vs 6.5% volumetric growth on YoY basis and last year secured a market share of 77.
Slide 6: Highlights – Vinyls
Highlights – Vinyls 4Q 2015 4Q 2014 FY 2015 FY 2014 PVC production (KT) 42 53 161 152 VCM production (KT) 42 53 162 168 PVC Sales in (KT) Local 36 34 149 125 Export 5 11 21 20 PVC Domestic Market Share * • PVC production touched its yearly high at the close of FY ’15 at 161 KT. 4% Production in 4Q 2
Slide 7: Highlights – Caustic & Allied
Highlights – Caustic & Allied 4Q 2015 4Q 2014 FY 2015 FY 2014 Caustic Production (KT) 25 27 98 114 Caustic Sales Volume (KT) 19 24 83 93 Hypo Sales (KT) 6 6 17 21 HCL Sales in (KT) 6 5 19 17 Caustic Domestic Market Share * • Domestic caustic market remained stable during the period • The sales for F
Slide 8: Financial Highlights
Financial Highlights • Financial Performance PKR Million 4Q 2015 4Q 2014 FY 2015 FY 2014 Total Revenue 5,200 6,673 22,264 23,819 EBITDA 573 (900) 1,558 989 Other Income 937 17 992 51 \ Profit/(Loss) Before Tax 696 (1,526) (360) (1,528) Profit/(Loss) After Tax 169 (1,077) (644) (1,109) • Variance as
Slide 9: Outlook for 1Q '16
Outlook for 1Q ‘16 • PVC domestic demand is expected to remain strong in the upcoming quarters on account of favorable construction outlook, improving economic sentiment and stable interest rates • Domestic demand of Caustic Soda is expected to remain stable. Market development efforts are likely to
Slide 10: Thank You
engro polymer & chemicals Thank You 10
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