Engro Polymer & Chemicals Limited · PSX:EPCL
Engro Polymer & Chemicals — Q2 2016 Earnings Presentation
9 slides from Engro Polymer & Chemicals's earnings presentation, Dec 22, 2016
Slide 1: Analyst Briefing 2Q & 1H 2016
0 ANALYST BRIEFING 2Q & 1H 2016
Slide 2: International Business Context
International Business Context • International PVC Price USD/Ton Q1 Q2 Q3 Q4 – During 2Q ‘16, PVC prices picked 1,100 up initially, however posted a 1,000 decline towards the end of the 900 800 quarter 723 774 700 October January November May June July September December March April February August
Slide 3: Ethylene, Crude oil and PVC
Ethylene, Crude oil and PVC • Analysis of ethylene and crude oil prices USD/Ton USD/bbl – Crude oil and ethylene 1,700 80 1,500 decoupled in 2Q due to 60 1,300 varying supply dynamics. 31 48 40 Resumption of supply in 1,100 900 1,001 1,039 20 Ethylene market assisted 700 0 price decline January Sept
Slide 4: Domestic Market Overview
Domestic Market Overview PVC Caustic • Domestic market remained strong in 2Q & 1H 2016 • Caustic market remained stable in 2Q & 1H 2016: – EPCL achieved its highest ever sales and also – On a quarterly basis, Caustic soda sales achieved its highest production in 1H ‘16 posted a 5% volumetric growth
Slide 5: Highlights – Vinyls
Highlights – Vinyls 2Q 2016 2Q 2015 1H 2016 1H 2015 PVC production (KT) 37 38 83 79 VCM production (KT) 34 39 85 80 PVC Sales in (KT) Local 39 39 84 80 Export - 1 1 15 PVC Domestic Market Share * 1% 22% 77% EPCL Sales Resin Imports Scrap Imports * Market share is based on our best estimates and have
Slide 6: Highlights – Caustic & Allied
Highlights – Caustic & Allied 2Q 2016 2Q 2015 1H 2016 1H 2015 Caustic Production (KT) 26 26 54 52 Caustic Sales Volume (KT) 23 22 44 46 Hypo Sales (KT) 5 5 10 8 HCL Sales in (KT) 4 5 8 9 Caustic Domestic Market Share * 33% 67% EPCL Others * Market share is based on our best estimates and have not be
Slide 7: Financial Summary
Financial Summary PKR Million 2Q 2016 2Q 2015 1H 2016 1H 2015 Total Revenue 5,422 5,716 11,161 12,417 EBITDA 603 205 1,194 720 Profit/(Loss) Before Tax 46 (399) 70 (524) Profit/(Loss) After Tax 22 (326) 40 (433) • In 2Q 2016, the Company achieved a revenue of Rs 5,422 Mn as against Rs. 5,716 Mn in 2
Slide 8: Outlook for 3Q '16
Outlook for 3Q ‘16 • Domestic PVC demand is expected to remain strong on account of favorable outlook for construction and an overall positive economic sentiment • Domestic demand of Caustic Soda is expected to remain stable, however the market landscape is likely to stay competitive • PVC - Ethylen
Slide 9: Thank You
engro polymer & chemicals Thank You
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