ENGRO POLYMER AND CHEMICALS LIMITED Analyst Briefing - Q1 2024
Engro Polymer & Chemicals Limited
Important Disclaimer
THIS PRESENTATION IS NOT AN OFFER OR SOLICITATION OF AN OFFER TO BUY OR SELL ANY SECURITIES OR ANY INVESTMENT
This presentation has been prepared by Engro Polymers and Chemicals Limited ("EPCL") solely for information purposes. No representation or warranty express or implied is made thereto, and no reliance should be placed on, the fairness, accuracy, sufficiency, completeness or correctness of the information or any opinion contained herein, or any opinion rendered thereto. The information contained in this presentation should be considered in the context of the circumstances prevailing at the time and will not be updated to reflect any developments that may occur after the date of the presentation. Neither EPCL nor any of its respective subsidiaries, affiliates, officials, advisors, associates, employees or any person working for, under or on behalf, shall have any responsibility and/or liability of any nature whatsoever (in contract or otherwise) for any loss whatsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation.
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Agenda
1
2
3
4
5
Key Highlights
Key Drivers
Business Updates
Looking Forward
Q&A
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Engro Polymer & Chemicals Limited
Key Highlights
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Engro Polymer and Chemicals Limited
Key Highlights
Financial
Highlights
Scale
Revenue | Profitability | LPS | Exports |
PKR 17 Bn | PKR (0.9) Bn | PKR (1.2) | $M 2.1 |
8% vs LY | 176% vs LY | vs. 193 vs LY | vs. 65% LY |
Market | Total | Tax | Total |
Capitalization | Employees | Contribution | Assets |
PKR 41 Bn | 707 | PKR 2.8 Bn | PKR 89 Bn |
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Engro Polymer & Chemicals Limited
Key Drivers
Engro Polymer and Chemicals Limited
Key Drivers
International PVC Prices | Highlights | |
1,100
936
891
800
(USD / MT) | ▪ The global PVC market remained under pressure on account of oversupply, geo- |
political turmoil and high volatility in international energy prices. |
- The prolonged winter season further dampened demand especially in mainland
768 | 797 | China, where construction activity remained lackluster and downstream demand |
remained weak during Lunar New Year holidays. | ||
- Export volumes from China remain above three-year average, with India being the major market for Chinese PVC.
500 | ▪ | During the quarter, logistics and raw material costs were two major factors | |||||||||||||||||||||||||||||||
Jan Feb Mar Apr May Jun Jul | Aug Sep Oct Nov Dec Jan Feb Mar | ||||||||||||||||||||||||||||||||
impacting the market. | |||||||||||||||||||||||||||||||||
2023 | 2024 | ||||||||||||||||||||||||||||||||
Core Delta | Highlights | ||||||||||||||||||||||||||||||||||||
600 | (USD / MT) | ▪ During the quarter, ethylene prices were volatile due to instability in the global oil | |||||||||||||||||||||||||||||||||||
and gas prices along with supply tightness. | |||||||||||||||||||||||||||||||||||||
510 | |||||||||||||||||||||||||||||||||||||
400 | 394 | ▪ | Bullish sentiment prevailed since mid-January with Ethylene prices rising from $ | ||||||||||||||||||||||||||||||||||
875 / MT to $1,050 / MT in the quarter. | |||||||||||||||||||||||||||||||||||||
316 | |||||||||||||||||||||||||||||||||||||
279 | ▪ In Asia, spot supply from regional producers remained tight and deep-sea cargoes | ||||||||||||||||||||||||||||||||||||
200 | |||||||||||||||||||||||||||||||||||||
from the United States and the Middle East were limited given the ongoing logistical | |||||||||||||||||||||||||||||||||||||
issues in the Panama Canal and the Red Sea. | |||||||||||||||||||||||||||||||||||||
- | ▪ | Operating rates of steam crackers also remained low during the quarter. | |||||||||||||||||||||||||||||||||||
Jan | Feb Mar Apr May Jun Jul Aug Sep Oct | Nov Dec Jan Feb Mar | |||||||||||||||||||||||||||||||||||
2023 | 2024 | ||||||||||||||||||||||||||||||||||||
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Engro Polymer and Chemicals Limited
Key Drivers
Gas Cost
(PKR / MMBtu)
3,728
3,303 | 3,251 | |||||||||
3,078 | ||||||||||
2,878 | ||||||||||
2,636 | ||||||||||
1,873 | 2,434 | |||||||||
1,851 | 2,200 | |||||||||
1,200 | 1,200 | 1,200 | ||||||||
Jan Feb Mar Apr May Jun Jul Aug | Sep Oct | Nov Dec Jan Feb Mar | ||||||||
2023 | 2024 | |||||||||
Industrial | Captive | |||||||||
Highlights
- Gas availability at competitive prices remains a key challenge for the Company.
- Gas rates fluctuated throughout the quarter. During the quarter we received gas at 40% RLNG nomination.
- Captive gas prices increased to PKR 2,750 / MMBtu whereas industrial gas rates slightly decreased from PKR 2,200 to 2,150 / MMBtu in Mar 2024
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Engro Polymer & Chemicals Limited
Business Updates
Engro Polymer & Chemicals Limited
Segment Wise Performance | PKR Mn |
Q1 2024
Revenue
Chlor-Alkali,
3,296
PVC, 13,226
Others, 50
PAT
Chlor-Alkali,
508
PVC, -1,410
Others, 1
Q1 2023
Revenue
Chlor-Alkali,
2,170
PVC, 15,778
Others, 31
PAT
PVC, 995 | Chlor-Alkali, |
177
Others, 11
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Engro Polymer & Chemicals Ltd. published this content on 23 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 April 2024 05:59:01 UTC.
