Engro Polymer & Chemicals Limited · PSX:EPCL
Engro Polymer & Chemicals — Q2 2017 Earnings Presentation
9 slides from Engro Polymer & Chemicals's earnings presentation, 2017
Slide 1: Analyst Briefing 2Q 2017
engro polymer & chemicals ANALYST BRIEFING 2Q 2017
Slide 2: International Business Context
International Business Context • International PVC Price USD/Ton Q1 Q2 Q3 Q4 – During 2Q ’17, PVC prices 1,100 softened on the back of ample 1,000 937 903 supply in the region 900 875 800 – PVC prices averaged at $883/ 700 MT for 2Q ‘17 May January December September October November March April Jun
Slide 3: Ethylene, Crude oil and PVC
Ethylene, Crude oil and PVC • Analysis of ethylene and crude oil prices USD/Ton USD/bbl – Crude oil and ethylene 1,600 70 maintained the same price 1,400 50 pattern in 2Q ‘17 1,200 1,000 30 800 September 10 October November January May May April December March April June July June February August Et
Slide 4: Domestic Market Overview
Domestic Market Overview PVC Caustic • Domestic market witnessed growth in PVC • Caustic market remained stable in 2Q 2017: demand in 2Q 2017. EPCL sales increased by 15% against same period last year – Caustic soda sales performed in line with expectation • Market grew by approximately 23%* in 1H 1
Slide 5: Highlights – Vinyls
Highlights – Vinyls 2Q 2017 2Q 2016 PVC production (KT) 42 37 VCM production (KT) 39 34 PVC Sales in (KT) Local 45 39 Export - - PVC – Ethylene Core Delta ($/MT) 388 255 PVC Domestic Market Share * 12% 20% 68% EPCL Sales Resin Imports Scrap Imports * Market share is based on our best estimates and h
Slide 6: Highlights – Caustic & Allied
Highlights – Caustic & Allied 2Q 2017 2Q 2016 Caustic Production (KT) 22 26 Caustic Sales Volume (KT) 20 24 Hypo Sales (KT) 5 5 HCL Sales in (KT) 3 4 Caustic Domestic Market Share * 30% 70% EPCL Others * Market share is based on our best estimates and have not been verified by an independent source
Slide 7: Financial Summary
Financial Summary PKR Million 2Q 2017 2Q 2016 Total Revenue 5,987 5,165 Profit Before Tax 385 46 Profit After Tax 200 23 • Variance as compared to 2Q2016 was witnessed on account of: – Higher core delta – Higher PVC Sales – Operational efficiencies and strict cost control measures • Variance as comp
Slide 8: Outlook for 3Q '17
Outlook for 3Q ‘17 • Domestic PVC demand is expected to remain robust on account of favorable outlook for construction and an overall positive economic sentiment • Caustic Soda market is expected to remain stable • PVC – ethylene core delta will remain sensitive to the price volatility of ethylene a
Slide 9: Thank You
engro polymer & chemicals Thank You
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