Engro Corporation announces 3Q results

KARACHI: Engro Corporation on Thursday announced its third quarter results showcasing a strong overall performance in its businesses.

"Profitability was augmented by the steady performances of terminal services and power, fertilizer, petrochemicals and the signing of major financial agreements for Sindh Engro Coal Mining Company (SECMC), said press release.

On a consolidated basis, Engro Corporation's revenue was Rs 86,431 million for the first three quarters of 2017, a 20 percent decrease from Rs 107,834 million for the comparative period last year.

The reduction was due to the fact that Engro Foods results were no longer consolidated in Engro Corporation results as a consequence of its partial divestment late in 2016.

Excluding Engro Foods turnover of the previous period, revenue grew by 18 percent. Improved market fundamentals throughout the period resulted in improved profitability in the fertilizer and petrochemicals businesses.

The profit-after-tax (PAT) from continuing operations (i.e. excluding Engro Foods) increased from Rs 8,727 million to Rs 11,646 million; up by 33 percent. Partial divestment of fertilizers and foods businesses during 2016 as well as adverse taxation changes introduced through Finance Act 2017 resulted in decrease in the profit attributable to shareholders from Rs 8,583 million in 9 months of 2016 to Rs 6,916 million in 9 months of 2017.

Engro Corporation's long-term rating was upgraded to AA while maintaining a short-term rating of A1+.