ENGRO POLYMER AND CHEMICALS LIMITED Analyst Briefing - Q4 2023
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 | EPS | Exports |
PKR 82 Bn | PKR 9 Bn | PKR 9.1 | $M 26 |
1% vs LY | 24% vs LY | vs. 12.37 LY | vs. 20% LY |
Market | Total | Tax | Total |
Capitalization | Employees | Contribution | Assets |
PKR 41 Bn | 711 | PKR 9.4 Bn | PKR 91 Bn |
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Engro Polymer & Chemicals Limited
Key Drivers
Engro Polymer and Chemicals Limited
Key Drivers
International PvC Prices | Highlights | ||||||||||||||||||||||||||||||||
1,700 | | The global polyvinyl chloride (PVC) industry in 2023 performed lackluster. The | |||||||||||||||||||||||||||||||
prices went back down to pre-Covid-19 levels, rangebound USD 770 - 850 per MT | |||||||||||||||||||||||||||||||||
1,400 | | During the first two months of 2023, PVC prices remained elevated mainly due to | |||||||||||||||||||||||||||||||
restocking activity in India and Europe, following an extensive liquidation of | |||||||||||||||||||||||||||||||||
1,100 | inventory in late 2022 | ||||||||||||||||||||||||||||||||
819 | | Coming out of the lunar new year, signs of slowdown started to appear especially in | |||||||||||||||||||||||||||||||
800 | |||||||||||||||||||||||||||||||||
China and the US | |||||||||||||||||||||||||||||||||
800 | |||||||||||||||||||||||||||||||||
500 | | Prices started picking up mid-2023 due to supply constraints as some plants- | |||||||||||||||||||||||||||||||
Jan Feb Mar Apr May Jun | Jul Aug Sep Oct Nov Dec | ||||||||||||||||||||||||||||||||
initiated maintenance shutdowns, while others cut production levels. Prices took a | |||||||||||||||||||||||||||||||||
2022 | 2023 | downturn again as various plants came back online after scheduled maintenance | |||||||||||||||||||||||||||||||
bottoming out in October | |||||||||||||||||||||||||||||||||
Core Delta
1,100
800
500 | 379 |
350
200
Jan | Feb Mar | Apr May Jun | Jul | Aug Sep | Oct | Nov Dec |
2022 2023
Highlights
- During the outgoing year, ethylene prices were volatile due to instability in the global oil and gas market in 2023
- Ethylene prices peaked around March mainly due to supply tightness and increase in crude prices
- Operating rates of steam crackers also saw a decline to ~78% during the year
- As supply disruptions eased, lackluster downstream PPE demand forced prices to remain rangebound
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Engro Polymer and Chemicals Limited
Key Drivers
Gas Cost (PKR / MMBtu)
3,728
3,303 | 3,251 |
2,878
2,636
1,851 1,873 2,200
1,200 | 1,200 |
1,200 |
Highlights
- Gas availability at competitive prices remains a key challenge for the Company.
- Gas rates fluctuated throughout the year starting at a high in January at 100% RLNG nomination before going back down to PKR 1,200 / MMBtu in March.
- To ensure uninterrupted gas supply the Company entered into an agreement with SSGC to source captive gas at blended rate of 25:75 from August to November 2023.
- In December, RLNG blending ratio was revised upwards to 40:60 for captive and 20:80 for indigenous gas.
Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
Industrial Captive
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Engro Polymer & Chemicals Limited
Business Updates
Engro Polymer & Chemicals Limited
Segment Wise Performance | PKR Mn |
Revenue
PVC, 69,811
PAT
PVC, 6,244
2023
Chlor-Alkali,
11,032
Others, 426
Chlor-Alkali,
2,619
Others, 69
2022
Revenue
PVC, 72,600
PAT
PVC, 7,357
Chlor-Alkali,
9,249
Others, 210
Chlor-Alkali,
4,294
Others, 38
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Engro Polymer & Chemicals Ltd. published this content on 07 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 March 2024 06:05:38 UTC.
