Engro Polymer & Chemicals Limited · PSX:EPCL
Engro Polymer & Chemicals — H1 2012 Earnings Presentation
8 slides from Engro Polymer & Chemicals's earnings presentation, August 2012
Slide 1: Analyst Briefing: 2Q and 1H 2012 Business Results
Analyst Briefing 2Q and 1H 2012 Business Results August 2012
Slide 2: Annual turnaround completed successfully in April
Annual turnaround completed successfully in April Smooth operations thereafter (34 KT VCM in 2Q). Operating rate of 540+ tpd. Sustained production during 1H (67 KT) up by 91% as compared to same period last year 3 KT VCM exported in 1H yielding a margin of $168/t vs. no exports in 1H ‘11 2
Slide 3: PVC Production and Sales
Production • 34 KT & 70KT PVC produced in Q2 & 1H respectively Sales • 27 KT domestic and 2 KT export sales in 2Q • 62 KT domestic and 4 KT export sales in 1H • Domestic sales volume grew by 14% in 1H’12 as compared to 1H’11 • Falling international prices put customers in wait-and- see mode, leading
Slide 4: Caustic Soda Highlights
Caustic Soda Highlights 25 KT Caustic produced and sold in the domestic market in 2Q 48 KT caustic sold in 1H which was up by 14% as compared to last year EPCL well-positioned to sell its entire production EPCL has a competitive advantage over other suppliers in terms of: - Consistent gas supply - G
Slide 5: 2Q and 1H 2012 operating and financial summary
(units) 2Q 2012 2Q 2011 1H 2012 1H 2011 Production: PVC KT 34 27 70 52 VCM KT 34 21 67 35 EDC KT 26 26 55 49 Caustic Soda KT 25 25 53 46 Sales: PVC Domestic KT 27 26 62 55 PVC Export KT 2 - 4 2 Caustic Domestic KT 25 22 48 42 Caustic Exports KT - - 2 - EDC Export KT - 4 - 7 PVC Domestic CM $/ton 277
Slide 6: Business Outlook
Business Outlook • PVC prices are expected to remain stable during 3Q 2012; however uncertainty is expected to prevail due to regional demand/supply and Euro- zone crisis. • Caustic Soda demand is expected to remain stable. • The management of the Company will continue its focus and commitment on sa
Slide 7: Analyst Briefing: 2Q 2012 Business Results
Analyst Briefing 2Q 2012 Business Results August 2012
Slide 8: 2Q 2012 vs 2Q 2011 loss variance
2Q 2012: (355) 2Q 2011: (136) Variance (219) Major factors (Rs. M): • Prices (74) • Higher sales volumes: 127 • VCM import 22 • Other costs (31) • PKR deval. (211) • Fixed cost (98) • Miscellaneous 47 • Total (219) 8
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