Engro Fertiliser has reported a 111% increase in profits in the quarter ending September 30, 2020. These numbers were recorded in a notice sent to the Pakistan Stock exchange (PSX) yesterday.
Last year the company had recorded a profit of Rs 3.3 billion. The earnings per share of the company also almost doubled since last year from Rs 2.49 to Rs 5.27.
The company also announced an interim cash dividend of Rs5 per share, taking the cumulative dividend in first nine months of 2020 to Rs9 per share.
Increase in Engro Fertiliser’s profit a result of lower than expected taxes
“Earnings turned out to be higher than industry’s expectations due to lower-than-expected effective tax rate,” said Topline Research analyst Sunny Kumar.
“In the third quarter of 2020, net sales increased 38% year-on-year on the back of 35% increase in urea offtake and 90% rise in di-ammonium phosphate (DAP) consumption,” he said, speaking about Engro Fertiliser’s profit.
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Other than the EPS net sales of the company also rocketed compared to last year, Rs37.4 billion in Jul-Sept 2020 compared to Rs27.1 billion last year.
Pakistan to produce gas and diesel
Earlier this week, Special Assistant on Coordination of Marketing & Development of Mineral Resources Shahzad Syed Qasim said that the government had been gearing up for two projects to convert Thar’s coal into gas and diesel, reported The News.
To do this, the government was in contact with two Chinese companies, China Ghazuba and China Coal. Additionally, the government had also asked Engro Fertilizer, Fauji Fertilizer, and Fatima Fertilizer to conduct a feasibility study for the project.
“We want to initiate two projects; one on Coal to Gas (CTG) and the other one on Coal to Liquid (CTL) and to this effect we have asked Engro Fertilizer, Fauji Fertilizer, and Fatima Fertilizer to initiate the feasibility study collectively on turning the Thar coal into synthetic gas and then equal to natural gas. The three players want to use synthetic gas as fuel for the production of fertilizer.”
GVS News Desk