Slide 1: Analyst Briefing FY 2016
ANALYST BRIEFING FY 2016 Security Analyst Briefing Picture Credits: Vendant Fertilizers FY 2016
Slide 2: Urea Market Environment
UREA MARKET ENVIRONMENT Industry urea sales clocked in at 5,485 KT vs. 5,582 KT in 2015, i.e. ~2% Urea Industry FY FY lower YoY (KT) Change 2016 2015 Lower demand for urea during first half was offset by higher consumption Opening Inv. 561 210 of urea in second half on account of better agronomi
Slide 3: Phosphates Market Environment
PHOSPHATES MARKET ENVIRONMENT 2016 industry sales stood at 2,225 KT compared to 1,814 KT in 2015, a Phosphate Prices (USD/T) growth of 23% YoY Higher industry sales were primarily due to subsidy on phosphates 500 400 throughout this year and lower international prices 300 The international DAP
Slide 4: Zarkhez Market Environment
ZARKHEZ MARKET ENVIRONMENT Potash industry in 2016 increased to 27 KT vs 25 KT in 2015, Potash Prices (USD/T) spurred on by lower international prices of MOP & SOP 350 300 However, these low prices resulted in farmers switching to 250 200 straight fertilizers vs. Zarkhez. Resultantly, market sha
Slide 5: Business Highlights
BUSINESS HIGHLIGHTS For full year 2016, the Company has declared a Profit after tax of PKR 9,283 million (consolidated), a decrease of 37% PKR M FY 2016 FY 2015 over PKR 14,819 million earned in 2015 Total Revenue 77,415 88,031 The lower profitability was primarily due to lower urea offtake and
Slide 6: Updates
UPDATES The Economic Coordination Committee (ECC) in 1Q 2016 permanently reallocated 60 MMSCFD gas back to the fertilizer companies to whom it was originally allocated, out of which EFERT’s share was 12.5 MMSCFD Throughout the year, Engro Fertilizers Limited remained in discussion with the relev
Slide 7: Outlook
OUTLOOK Global urea demand in 2017 is expected to grow marginally, while supply is expected to trend moderately higher, with new capacities coming on line. Although international urea prices have lately rebound, however, weak crop and stable input prices coupled with capacity increase in certain m
Slide 8: Thank You Q&A
THANK YOU Q&A Security Analyst Briefing FY 2016