Slide 1: Analyst Briefing Full Year 2015
ANALYST BRIEFING Full Year 2015
Slide 2: Urea Market Environment
UREA MARKET ENVIRONMENT OGRA notified increase in gas prices effective September 1, 2015 Urea Industry FY FY Change (MT) 2015 2014 Feed Gas PKR 500/MMBTU from PKR 423/MMBTU Fuel Gas PKR 750/MMBTU from PKR 638/MMBTU Opening Inventory 0.2 0.3 All manufacturers increased urea prices by PKR 160/
Slide 3: Urea Market Environment: FY 2015 Farmer Benefit
UREA MARKET ENVIRONMENT FY 2015 Farmer Benefit (PKR B) 9% 6% 1% GoP Subsidy - Domestic 34% 1% 9 GoP Subsidy on Imports (Rs. Bn) 12 Benefit by Fertilizer 49% Industry to farmer (Rs. Bn) 3 Engro Fauji Agri Tech DH Fatima NFML Engro managed to increase its Urea market Benefit passed on by local urea pr
Slide 4: Phosphates Market Environment
PHOSPHATES MARKET ENVIRONMENT Local industry sales increased by 5% vs. last year to 1,768KT, primarily due to the implementation of Phosphate Prices (USD/T) subsidy in 4Q 500 450 However, this compared unfavourably to an average industry growth of 6% over the last 5 years (despite the 400 impetu
Slide 5: Zarkhez Market Environment
ZARKHEZ MARKET ENVIRONMENT Potash industry in 2015 declined by 16% YoY due to Potash Prices (USD/T) poor crop economics which shifted farmer attention from potash based fertilizers 310 290 However, the market share of Zarkhez increased to 51% 270 (42% in 2014) contributing to a lower than indust
Slide 6: Gas Update
GAS UPDATE Gas for both plants likely to continue in 1Q 2016. Further with more gas being available in the Mari network there is a fair probability that gas will continue beyond 1Q 2016 Subsequent to the enactment of the GIDC Act 2015, the company has started paying GIDC on current billing exclu
Slide 7: Business Highlights
BUSINESS HIGHLIGHTS EFERT 4Q 2015 standalone PAT stood at PKR 5.1 B vs PKR 2.7 B Engro Fertilizers FY 2015 FY 2014 in 4Q 2014 Standalone (PKR M) EFERT FY 2015 standalone PAT stood at PKR 15 B vs PKR 8.2 B Revenue 87,615 61,425 in 2014; Consolidated PAT for 2015 stood at PKR 14.8 B Gross Profit 3
Slide 8: Outlook
OUTLOOK Production is expected to remain stable 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 Considering the dismal farmer economics and the global commodity meltdown, fertilizers
Slide 9: Thank You Q & A
THANK YOU Q&A Security Analyst Briefing FY 2015