Engro's profit after tax at Rs 6.8 BN

KARACHI: The Board of Directors of Engro Corporation Limited has announced the achievement of the Company's highest-ever Profit after Tax of Rs 6.8 billion, for the year ended December 31, 2010.

An announcement here on Tuesday said that the consolidated revenue stood at 79.9 billion for the year ended December 31, 2010, as compared to 58.2 billion in 2009. The company announced earnings per share (EPS) of Rs 20.72 for 2010, as compared to an EPS of Rs 12.24 in 2009. A final cash dividend of 20% (Rs 2) per share has been approved by the Board, making a total dividend of Rs 6 for 2010.

The Board has also recommended the issuance of 20 % bonus shares (1 share to every 5 shares held).

It was pointed out that in 2010, the urea industry declined to 6.1 m tons (from 6.5m in 2009) due to the floods which reduced Kharif demand. "We produced 972,000 tons of urea, and sold 949,000 tons of urea, with 22,000 tons consumed in Zarkhez operations, and maintained a full year share of 15% of the fertiliser market," it was further stated.

In 2010, the business also completed construction on the world's largest single train ammonia-urea plant, with a capacity of 1.3m tons.

The business earned a profit of Rs 3.7 billion on revenues of Rs 19 billion. The phosphates industry declined to 1.4m tons from 1.8m tons. Engro Eximp sold 329kt of phosphates vs 357kt in 2009.

In 2010, the foods business achieved volume growth of 27% in the processed milk segment, increasing volumes to 309 million litres from 243 million litres  in 2009.

The business achieved overall profitability in 2010, reaching the target earlier than planned, as well as beginning operations at the rice processing plant in Muridke, with sales expected to begin in 2011. The business on revenues of Rs 21 billion, earned a profit of Rs 177 million.

The petrochemical business began production from its VCM plant in the year, hence initiating full operations from the integrated facility. Production was lower than capacity due to limited availability of VCM and some operational constraints. The business on revenues of Rs 14.6 billion, had a loss of Rs 770 million.

It was further pointed out that 2010 also marked the beginning of commercial operations at the Company's energy plant in Qadirpur, which is Engro's first venture into the energy and power sector.

The plant demonstrated a billable availability factor of 95%, despite being its first year of operation and dispatched a total net power of 1,201 GWh to the national grid.

In 2010, the Sindh Engro Coal Mining Company Limited (SECMC) completed the detailed feasibility study (DFS) as per the target deadline, confirming the technical, social and environmental viability of the Thar Coal Mining Project. The business earned a profit of Rs 1.1 billion on revenues of Rs 5.7 billion.

The chemical terminal's actual throughput for the year was 1,104 k tons vs. 1,063 k tons in 2009, including LPG import of 31 k tons vs 40 k tons in 2009. Engro Vopak also achieved a first in the history of LPG imports in the country by handling the largest ship (5,000 tons) to dock in Pakistan. The business on revenues of Rs 2.3 billion, earned a profit of Rs 1.1 billion.

Despite tough economic conditions, the automation and control engineering business had an increase in new business and revenues over the last year, although this revenue remained below breakeven point due to difficulties in its energy SBU.

The business earned revenue of Rs 1.8 billion, with a loss of Rs 195 million. The commodity trade business successfully built relationships with premium buyers in international markets, and exported 5,000 tons of rice during the year.