Engro Polymer and Chemicals Limited (EPCL), a subsidiary of Engro Corporation, said on Wednesday that it has extended its gas supply arrangement with Sui Southern Gas Company Limited (SSGC) till mid-October.

The company shared the development in a notice to the Pakistan Stock Exchange (PSX) on Wednesday.

“We would like to inform the Exchange that EPCL and SSGC have agreed to extend the term for the supply of gas up till October 15, 2023,” read the notice.

The company shared that the gas will be used for EPCL`s captive power generation plant located at Port Qasim Industrial Zone on Plot no. EZ/1P-II-I, Karachi on an “as and when” available basis.

“This will ensure that the company’s operations continue unhindered,” it added.

Back in August, EPCL entered into a supplemental agreement with SSGC for the supply of gas from August 01, 2023, to September 30, 2023

As per its latest financial results, the company saw its profit-after-tax fall to Rs1.56 billion during the quarter ended June 30, 2023, down over 33% compared to profit of Rs2.34 billion in the same period last year.

EPCL’s gross profit stood at Rs5.45 billion in the quarter, as compared to Rs7.53 billion, a drop of nearly 28%.

Net sales decreased by nearly 15% to Rs19.04 billion as compared to Rs22.27 billion recorded in the previous year. Cost of sales declined to Rs13.59 billion, compared to Rs14.75 billion recorded in the same period last year.

EPCL is a manufacturer of Poly Vinyl Chloride, Vinyl Chloride Monomer, caustic soda and other related chemicals. The company is also engaged in the supply of surplus power generated from its power plants to Engro Fertilizers Limited.