Engro Polymer & Chemicals Limited · PSX:EPCL
Engro Polymer & Chemicals — Q1 2015 Earnings Presentation
10 slides from Engro Polymer & Chemicals's earnings presentation, Dec 16, 2015
Slide 1: Analyst Briefing — 1Q 2015
engro polymer & chemicals ANALYST BRIEFING — 1Q 2015
Slide 2: Summary
Summary • In 1Q 2015, the Company achieved a revenue of Rs. 6,701 Mn as against 5,367 Mn in 1Q 2014 • The Company posted a loss after tax of Rs. 107 Mn translating into negative Earnings Per Share of Rs. 0.16 as compared to a profit after tax of Rs. 148 Mn and Earning Per Share of Rs. 0.22 in 1Q 201
Slide 3: International Business Context
International Business Context • International PVC Price USD/Ton – 2015 started with lowest PVC 1,300 price in last 4 years. Prices 1,100 improved gradually and CFR 844 900 805 818 SEA prices touched $ 844/t in 700 March November August March January December May July June September October February
Slide 4: Ethylene, Crude oil and PVC
Ethylene, Crude oil and PVC • Analysis of ethylene and crude oil prices USD/Ton 1600 USD/bbl 140 – Ethylene prices followed the 1,424 1,492 1400 110 crude oil prices in 4Q 2014, 1,148 the trend extended in 2015 1200 112 1,031 80 99 but was short-lived. Regional 1000 64 50 56 supply tightness pushed
Slide 5: Domestic Market Overview
Domestic Market Overview PVC Caustic • Domestic market remained strong in 1Q 2015 • Domestic caustic market remained stable in 1Q 2015: – During the quarter, the company posted a 60% – The Company capitalized on supply shortfall in volumetric growth on YoY basis and secured a North market market sha
Slide 6: Highlights – Vinyls
Highlights – Vinyls 1Q 2015 1Q 2014 PVC production in KT 41 33 VCM production in KT 41 33 PVC Sales in KT Local 40 25 Export 14 5 EPCL PVC Base Price ($/MT) 864 1,107 EPCL weighted average Ethylene Avg. Price ($/MT) 1,043 1,444 PVC – Ethylene Core Delta ($/MT) 343 385 PVC Domestic Market Share * • I
Slide 7: Highlights – Caustic & Allied
Highlights – Caustic & Allied 1Q 2015 1Q 2014 Caustic Production (KT) 26 25.9 Caustic Sales Volume (KT) 23.7 21.7 Caustic Price (Rs./MT) 49,066 51,403 Hypo Sales (KT) 3.1 4.5 HCL Sales in (KT) 4.0 4.8 • Considering the overall market dynamics In 1Q 2015, EPCL Prices Caustic Domestic Market Share * r
Slide 8: Financial Highlights
Financial Highlights • Financial Performance PKR Million 1Q 2015 1Q 2014 Total Revenue 6,701 5,367 Contribution Margin 1,623 1,484 EBITDA 684 612 Profit/(Loss) Before Tax (125) 258 Profit/(Loss) After Tax (107) 148 • Variance as compared to 1Q 2014 was witnessed on account of: – Higher domestic sale
Slide 9: Outlook for 2Q
Outlook for 2Q • PVC domestic sales outlook is stable however, monsoon timing and duration, spending on government projects, PVC resin and scrap differential may affect domestic sales volume • PVC – Ethylene core delta may witness pressure due to firm ethylene prices in case of supply tightness, how
Slide 10: Thank You
engro polymer & chemicals Thank You 10
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