Engro Fertilizers Ltd. · PSX:EFERT
Engro Fertilizers — 9M 2015 Earnings Presentation
9 slides from Engro Fertilizers's earnings presentation, 2015
Slide 1: Analyst Briefing 9M 2015
Analyst Briefing 9M 2015 Security Analyst Briefing 9M 2015
Slide 2: Urea Market Environment
U REA M ARKET E NVIRONMENT OGRA notified increase in gas prices effective September Urea Industry 9M 9M Change 1, 2015 (MT) 2015 2014 Feed Gas PKR 500/MMBTU from PKR 423/MMBTU Opening 0.2 0.3 Inventory Fuel Gas PKR 750/MMBTU from PKR 638/MMBTU Production 3.9 3.6 8% All manufacturers increase
Slide 3: Urea Market Environment
U REA M ARKET E NVIRONMENT 9M 2015* Farmer Benefit (PKR B) 12% 1% 7% 33% 2 GoP Subsidy - Domestic (net) 3 GoP Subsidy on Imports Benefit by Fertilizer Industry to farmer 47% 14 Engro Fauji Fatima AgriTech NFML Urea market shares are broadly unchanged Benefit passed on by local urea producers from la
Slide 4: Phosphates Market Environment
P HOSPHATES M ARKET E NVIRONMENT Total DAP off take fell by 21% vs 9M 2014 as the industry Phosphate Prices (USD/T) awaited the implementation of the announced subsidy 500 480 The government has notified subsidy for Phosphate 460 based fertilizers on October 15, 2015 440 420 400 The subsidy am
Slide 5: Zarkhez Market Environment
Z ARKHEZ M ARKET E NVIRONMENT The Potash market fell by 12% as there was confusion Potash Prices (USD/T) that expected subsidy would extend to Potash as well 310 The Phosphate subsidy announced by the government 290 post period end amounts to PKR 217/bag for NP and PKR 270 163 to 250/bag for Zar
Slide 6: Gas Update
G AS U PDATE Gas for both plants has remained available continuously and is likely Gas Available Days to remain so until 31st December 2015 (2 Plant Operation) 300 Subsequent to the enactment of the GIDC Act 2015, the company has started paying GIDC on current billing excluding concessionary 250
Slide 7: Business Highlights
B USINESS H IGHLIGHTS EFERT 3Q 2015 standalone PAT stood at PKR 2.8 B vs PKR Engro Fertilizers 9M 9M 2.1 B in 3Q 2014 Standalone (PKR M) 2015 2014 EFERT 9M 2015 standalone PAT stood at PKR 9.9 B vs PKR Revenue 51,928 43,692 5.5 B in 9M 2014 Gross Profit 20,703 15,915 The company has announced
Slide 8: Outlook
O UTLOOK Production is expected to remain stable during the rest of the year given continued availability of gas for both plants The company continues to negotiate with the government for availability of gas for both plants beyond 2015 Given current urea demand supply situation, current invent
Slide 9: Q & A Thank You
Q&A Thank You Security Analyst Briefing 9M 2015