Engro Polymer & Chemicals Limited · PSX:EPCL
Engro Polymer & Chemicals — H1 2013 Earnings Presentation
9 slides from Engro Polymer & Chemicals's earnings presentation, Aug 22, 2013
Slide 1: Analyst Briefing – Q2 and 1H 2013
ANALYST BRIEFING – Q2 AND 1H 2013 AUGUST 22, 2013
Slide 2: Summary – Q2 2013
Summary – Q2 2013 • In Q2 2013, the Company recorded a revenue of Rs.6.1 B as compared to Rs.4.5 B in Q2 2012 • The Company posted a Profit After Tax (PAT) of Rs.162 M in Q2 2013 as compared to a Loss After Tax of Rs.355 M in Q2 2012 • Rise in profitability is mainly attributable to the following fa
Slide 3: International Business Context
International Business Context • International PVC Price 1,300 – Margins in 2Q 2013 remained 1,100 soft, going forward prices are expected to improve on 900 account of post monsoon and pre Christmas buying 700 May July June September October November December April January August February March 2011
Slide 4: Production Highlights
Production Highlights • Company witnessed smooth operations in Q2 2013, VCM plant operations were streamlined and highest production of VCM was posted in 2Q 2013 • Stable VCM operations enabled the company to produce PVC by entirely using in house VCM • Caustic production remained robust Volume (MT)
Slide 5: Sales Analysis
Sales Analysis – PVC sales grew by 28% as compared to 2Q 2012, Volume (MT) Q2 2013 Q2 2012 mainly due to market development initiatives and PVC strict enforcement of PVC scrap import Local 35.0 27.0 regulations Export 2.3 2.0 VCM 7.4 3.0 – Caustic sales were marginally lower than 2Q 2012, Caustic So
Slide 6: PVC Market Analysis
PVC Market Analysis • PVC Market Share * 2H 2013 2H 2012 18% 19% 2% 7% 80% 74% EPCL Sales Resin Imports Scrap Imports EPCL Sales Resin Imports Scrap Imports • New developments and application – Successfully introduced PVC in Panaflex – Promoted use of PVC rigid sheet in blister packaging of medicine
Slide 7: Financial Highlights
Financial Highlights • Company posted strong financial performance in Q2 2013 as compared to Q2 2012 PKR Million Q2 2013 Q2 2012 Total Revenue 6,144 4,458 Contribution Margin 1,676 1,234 Profit After Tax 162 (355) • Variance as compared to 2012 was witnessed on account of: – Better PVC Volumes – Hig
Slide 8: Future Outlook
Future Outlook • PVC international prices are expected to remain stable to strong post monsoon season • Ethylene is expected to follow the upward trend with rise in crude oil prices and temporary shut down for turnaround of plants in Indonesia • PVC debottlenecking plan has already been initiated, i
Slide 9: Thank You
engro polymer & chemicals Thank You
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