Engro Polymer and Chemicals Limited’s financial result’s for the half year ended June 30, 2011

Engro Polymer and Chemicals Limited’s financial result’s for the half year ended June 30, 2011

Karachi: We have to inform you that the Board of Directors of our Company in their meeting held on August 05, 2011 at Bahria Complex 1, 24 M.T. Khan Road Karachi, reviewed the financial results of the Company for the half year ended June 30, 2011, recommended the following:-

 

Interim Cash Dividend Nil
Bonus/Right Shares Nil

 

The un-audited financial results and Directors’ review for the half year ended June 30, 2011 are enclosed.

ENGRO POLYMER and CHEMICALS LIMITED AND ITS SUBSIDIARY COMPANY

CONSOLIDATED CONDENSED INTERIM PROFIT AND LOSS ACCOUNT

FOR THE HALF YEAR ENDED JUNE 30, 2011

(Amounts in thousand except for Loss per share)

 

Quarter ended Quarter ended Half year ended Half year ended
June 30, 2011 June 30, 2010 June 30, 2011 June 30, 2010
Rs.in thousand Rs.in thousand Rs.in thousand Rs.in thousand
Net Sales 3,907,520 3,570,715 8,031,180 6,854,469
Export rebate 102 102
3,907,520 3,570,817 8,031,180 6,854,571
Less: Cost of sales (3,410,294) (3,303,021) (6,990,348) (6,377,854)
Gross profit 497,226 267,796 1,040,832 476,717
Less: Distribution and marketing expenses (204,234) (162,114) (396,846) 282,827
Less: Administrative expensos (96,328) (81,584) (174,015) (142,363)
Less: Other operating expenses (59,975) (141,548) (49,546) (141,211)
Add: Other operating income 25,404 10,140 37,068 16,461
Operating Profit/ (Loss) 162,093 (107,310) 457,493 (73,223)
Less: Finanace costs (371,535) 374,665 (758,852) (657,040)
Loss before taxation (209,442) (481,975) (301,359) (730,263)
Taxation 73,236 186,968 106,260 280,879
Loss for the period (136,206) (295,007) (195,099) (449,384)
Loss per share – basic and diluted (0.21) (0.47) (0.29) (0.75)
(Accumulated Loss) / Unappropriated Profit
brought forward (608,072) 65,796 (549,179) 220,173
Transfer from Employees’ Share Compensation
Reserve 94 186 94 186
Accumulated Loss before appropriation (744,184) (229,025) (744,184) (229,025)
Dividend
Accumulated LOSS after appropriation (744,184) (229,025) (744,184) (229,025)

 

 

ENGRO POLYMER and CHEMICALS LIMITED CONDENSED INTERIM PROFIT AND LOSS ACCOUNT FOR THE HALF YEAR ENDED JUNE 30, 2011 (Amounts in thousand except for loss per share)

 

Quarter ended Quarter ended Half year ended Half year ended
June 30, 2011 June 30, 2010 Juns 30, 2011 June 30, 2010
Rs. in thousand Rs. In thousand Rs. in thousand Rs. in thousand
Net sales 3,902,576 3,588,261 7,894,630 6,809,996
Less Cost of sales (3,407,110) (3,302,659) (6,878,574) (6,377,492)
Gross Profit 495,466 285,602 1,016,056 432,504
Less Distribution and

Marketing expenses

(204,374) (160,397) (386,225) (279,301)
Less Administrative expenses (93,521) (79,146) (171,208) (139,925)
Less other Operating expenses (63,567) (146,311) (49,692) (144,452)
Add other Operating expenses 22,289 7,901 24,774 10,685
Operating Profit / (Loss) 156,293 (92,351) 433,705 (120,489)
Less Finance costs (371,205) (367,456) (753,102) (644,815)
Loss before taxation (214,912) (459,807) (319,397) (765,304)
Taxation 75,472 190,651 112,249 288,816
Less for the Period (139,440) (269,156) (207,148) (476,488)
Loss per share – basic
and diluted (0.21) (0.43) (0.31) (0.80)
(Accurnulated Loss) /

Unappropriated Profit Brought

Forward (696,405) (23,129) (628,697) 184,203
Transfer from Employes’ share
Compensation Reserve 94 186 94 186
Accumulated Loss before

appropriation

(835,751) (292,099) (835,751) (292,099)
Dividend
Accumulated Loss after
appropriation (835,751) (292,099) (835,751) (292,099)

 

 

Engro Polymer and Chemical Limited and its Subsidiary Company

Directors’ Review to the Shareholders

On Unaudited conslidated Condensed Interim Financial Statements

For the Half Year Ended June 30, 2011

On behalf of Directors of Engro Polymer and Chemical Limited, we would like to present the unaudited Financial Statement of the Company for the half year ended June 30, 2011.

Business Review

Vinyl Chloride Monomer (VCM) production during 2Q 2011 at 21K tons was better than last year production of 12K tons, but below expectation due to an unplanned outage of one of the VCM furnaces. The Company imported 7K tons of VCM during 2Q 2011 to meet the shortfall.  VCM production for 1H 2011 was 35K tons as compared to 14K tons in the corresponding period last year.

Poly Vinyl Chloride (PVC) production during 2Q 2011 was 27K tons as compared to 30K tons in 2Q 2010. Production was lower than last year due to unavailability of VCM. The Company sold 26K tons in 2Q 2011 as against 25K tons in 2Q 2010. Total PVC production for 1H 2011 was 52K tons as compared to 50K tons in 1H 2010. PVC domestic sales for 1H 2011 was 55K tons as against 46K tons in the same period last year. International PVC prices remained in the range of $ 1,200 per ton during 2Q 2011 on account of high raw material prices and supply demand. International PVC-VCM price differential at around $100/ton remained the same as 2Q 2010.

Caustic Soda production for the quarter was 25K tons which was same as last year. The Company sold 22K tons in 2Q 2011 as against 21K tons in 2Q 2010. Total Caustic soda production during 1H 2011 was 46K tons as compared to 44K tons in the same period last year. The Company sold 42K tons of Caustic soda in the first six months of the year as against 38K tons last year. A total of 5K tons of Sodium Hypochlorite was produced and sold in the domestic market during the quarter. EDC production for 2Q 2011 was 26K tons. The Company exported 4K tons of EDC during 2Q 2011.

Revenue during 1H 2011 was Rs. 8,031 million showing an increase of 17% over the same period last year. Growth in revenue is attributable to increased volumes and higher product prices as compared to the same period last year. However, as a result of low VCM production and lower PVC sales, the Company incurred a loss after tax of Rs. 195 million in 1H 2011 as compared to a loss after tax of Rs. 449 million in the same period last year.

Near Future Outlook

While VCM operations have been improved over the last year, VCM plant has so far not been able to achieve stable operations for extended period at design throughput rates. Extensive effort is being directed to improve the areas impacting smooth operations and it is expected that the production performance of the VCM plant will continue to see improvement. However, full benefit of the integrated operations will only be achieved with stable VCM operations at designed rates.

Engro Polymer and Chemical Limited

Directors’ Review to the Shareholders

On Unaudited Unconslidated Condensed Interim Financial Statements

For the Half Year Ended June 30, 2011

On behalf of Directors of Engro Polymer and Chemical Limited, we would like to present the unaudited Financial Statement of the Company for the half year ended June 30, 2011.

Business Review

Vinyl Chloride Monomer (VCM) production during 2Q 2011 at 21K tons was better than last year production of 12K tons, but below expectation due to an unplanned outage of one of the VCM furnaces. The Company imported 7K tons of VCM during 2Q 2011 to meet the shortfall.  VCM production for 1H 2011 was 35K tons as compared to 14K tons in the corresponding period last year.

Poly Vinyl Chloride (PVC) production during 2Q 2011 was 27K tons as compared to 30K tons in 2Q 2010. Production was lower than last year due to unavailability of VCM. The Company sold 26K tons in 2Q 2011 as against 25K tons in 2Q 2010. Total PVC production for 1H 2011 was 52K tons as compared to 50K tons in 1H 2010. PVC domestic sales for 1H 2011 was 55K tons as against 46K tons in the same period last year. International PVC prices remained in the range of $ 1,200 per ton during 2Q 2011 on account of high raw material prices and supply demand. International PVC-VCM price differential at around $100/ton remained the same as 2Q 2010.

Caustic Soda production for the quarter was 25K tons which was same as last year. The Company sold 22K tons in 2Q 2011 as against 21K tons in 2Q 2010. Total Caustic soda production during 1H 2011 was 46K tons as compared to 44K tons in the same period last year. The Company sold 42K tons of Caustic soda in the first six months of the year as against 38K tons last year. A total of 5K tons of Sodium Hypochlorite was produced and sold in the domestic market during the quarter. EDC production for 2Q 2011 was 26K tons. The Company exported 4K tons of EDC during 2Q 2011 through Engro Polymer Trading (Pvt) Ltd (a subsidiary of Engro Polymer and Chemicals Ltd).

Revenue during 1H 2011 was Rs. 7,895 million showing an increase of 16% over the same period last year. Growth in revenue is attributable to increased volumes and higher product prices as compared to the same period last year. However, as a result of low VCM production and lower PVC sales, the Company incurred a loss after tax of Rs. 207 million in 1H 2011 as compared to a loss after tax of Rs. 476 million in the same period last year.

Near Future Outlook

While VCM operations have been improved over the last year, VCM plant has so far not been able to achieve stable operations for extended period at design throughput rates. Extensive effort is being directed to improve the areas impacting smooth operations and it is expected that the production performance of the VCM plant will continue to see improvement. However, full benefit of the integrated operations will only be achieved with stable VCM operations at designed rates.

 

For more information, contact:
Arshaduddin Ahmed
Company Secretary
Engro Polymer and Chemical Limited
First Floor, Bahria Complex 1,
24, M.T. Khan Road,
Karachi, Pakistan.
UAN: +9221 111-411-411
Tel: +9221 5610610
Fax: +9221 5611690

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