Engro Polymer & Chemicals Limited · PSX:EPCL
Engro Polymer & Chemicals — Q3 2014 Earnings Presentation
10 slides from Engro Polymer & Chemicals's earnings presentation, 2014
Slide 1: Analyst Briefing — 3Q 2014
engro polymer & chemicals ANALYST BRIEFING — 3Q 2014
Slide 2: Business Overview (3Q 2014)
Business Overview (3Q 2014) • In 3Q 2014, the company recorded a Revenue of PKR 5.2 billion as compared to PKR 6.1 billion in 3Q last year • The Company posted a Loss After Tax of PKR (157) million in 3Q 2014 as against Profit After Tax of PKR 127 million in 3Q 2013 • Loss in 3Q vs. previous year wa
Slide 3: International Market Update
International Market Update • International PVC Price USD/Ton – PVC prices remained weak in 1,300 3Q 2014. Usually, they follow 1040 1043 1046 1,100 Ethylene price trend but 900 excess supply of carbide 700 based PVC from China restricted upside in PVC November August March January December May July
Slide 4: PVC–Ethylene International Price Comparison
PVC –Ethylene International Price Comparison 1,070 1,492 1,500 1,480 1,060 1,480 1,059 1,048 1,050 1,038 1,040 1,459 1,043 1,449 1,460 1,040 1,462 1,043 1,030 1,453 1,448 1,440 PVC 1,428 1,031 1,029 Ethylene 1,020 1,420 1,018 1,424 1,010 1,400 1,000 990 1,380 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-1
Slide 5: Domestic Market Overview
Domestic Market Overview PVC Caustic • PVC domestic sales dampened • Domestic caustic market remained during 3Q 2014 due to: stable in 3Q, however, long product – Eid Holidays, electricity load supplies put pressure on Caustic shedding at customer’s end prices – Buyers held orders as they • The Comp
Slide 6: Highlights – Vinyls
Highlights – Vinyls 3Q 2014 3Q 2013 PVC production in KT 40.8 35.4 VCM production in KT 47.2 40.1 PVC Sales in KT Local 27.1 35.5 Export 2.1 - EPCL PVC Base Price ($/MT) 1,102 1,058 EPCL weighted average Ethylene Avg. Price ($/MT) 1,465 1,327 PVC – Ethylene Core Delta ($) 369 394 PVC Domestic Market
Slide 7: Highlights – Caustic & Allied
Highlights – Caustic & Allied 3Q 2014 3Q 2013 Caustic Production (KT) 31.5 29.6 Caustic Sales Volume (KT) 22.4 24.9 Caustic Price (Rs/MT) 48,565 49,853 Caustic Margins (Rs./MT) 17,979 25,429 Hypo Sales (KT) 5.3 5.6 HCL Sales in (KT) 4.1 5.9 Caustic Domestic Market Share * • In 3Q 2014, competition i
Slide 8: Financial Highlights
Financial Highlights • Financial Performance PKR Million 3Q 2014 3Q 2013 Total Revenue 5,244 6,105 Contribution Margin 1,324 2,200 EBITDA 319 1,119 Profit/(Loss) Before Tax (211) 224 Profit/(Loss) After Tax (157) 127 • Variance as compared to same period last year was mainly due to: – Lower PVC dome
Slide 9: Outlook for 4Q 2014
Outlook for 4Q 2014 • Stable PVC domestic demand due to depleted inventories at customer’s end • PVC – Ethylene core delta is expected to improve due to expected rationalization in Ethylene prices • Domestic demand of Caustic Soda is expected to remain stable, however, EPCL prices are expected to re
Slide 10: Thank You
engro polymer & chemicals Thank You 10
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