Analyst Briefing - Q2 2023

Engro Polymer & Chemicals Limited

Key Highlights

  • TRIR (total recordable injury rate) of 0.23
  • Execution of digitization and efficiency projects
  • Recovery in Quarter-on-Quarter Caustic sales
  • Increase in dollar inflows against exports
  • Ease in LC establishment and remittances, and progress on ongoing projects
  • Adverse budgetary implications including reimposition of super tax at 10%
  • Worsening Core Delta Quarter-on-Quarter
  • Continued increases in cost of doing business given devaluation and inflationary pressures

2

Engro Polymer & Chemicals Limited

International Markets

International Market Prices

International PVC Price

USD/Ton

1,700

1,400

1,100

891

800

768

500

Jan Feb Mar Apr May Jun

Jul Aug Sep Oct Nov Dec

2022 2023

PVC - Ethylene Core Delta

USD/Ton

1,100

800

500

394

388

200

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug Sep

Oct

Nov Dec

2022

2023

  • PVC international prices remained bearish in the second quarter
  • Prices impacted by a hazy economic outlook, geopolitical turbulence, slower than expected recovery in China, and an oversupply situation in India.
  • Ethylene prices decreased during the quarter due to limited downstream demand, volatility in oil prices, and oversupply across most regions.
  • Ethylene prices will remain impacted by crude oil prices and OPEC+ decisions
  • PVC prices are expected to recover to healthy levels once the challenging global geopolitical climate improves and recessionary concerns subside

Source: Platts, ICIS 4

Engro Polymer & Chemicals Limited

Business Updates

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Engro Polymer & Chemicals Ltd. published this content on 10 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 August 2023 10:40:07 UTC.