Engro Polymer & Chemicals Limited · PSX:EPCL
Engro Polymer & Chemicals — Q3 2013 Earnings Presentation
9 slides from Engro Polymer & Chemicals's earnings presentation, Oct 25, 2013
Slide 1: Analyst Briefing – 3Q 2013
ANALYST BRIEFING – 3Q 2013 OCTOBER 25, 2013
Slide 2: Summary – 3Q 2013
Summary – 3Q 2013 • In 3Q 2013, company recorded a Revenue of PKR 6,105 Mn as compared to PKR 6,077 Mn in 3Q 2012 • Company posted a Profit After Tax (PAT) of PKR 127 Mn in the 3Q 2013 as against Profit After Tax of PKR 24 Mn in 3Q 2012 • Rise in profitability can be attributed to the following fact
Slide 3: International Business Context
International Business Context • International PVC Price USD/Ton 1,300 – International PVC prices maintained an upward trend 1,100 in 3Q 2013. The increase in 900 prices was primarily cost 700 push which was also November August March July January December May June September October February April p
Slide 4: Production Highlights
Production Highlights Volume (MT) Q3 2013 Q3 2012 9M 2013 9M 2012 PVC 35.4 36.8 105.6 106.9 VCM 40.1 41.3 124.1 108.0 EDC 29.9 29.2 85.5 84.4 Caustic 29.6 28.1 84.5 81.1 Hypo 5.6 4.6 16.4 14.5 • Company witnessed smooth operations in Q3 2013, VCM plant operations have been streamlined and recorded h
Slide 5: Sales Analysis
Sales Analysis Volume (MT) Q3 2013 Q3 2012 – PVC volumetric sales declined by 5% as compared to 3Q 2012. In 3Q 2012, prices of PVC PVC showed a sharp increase Local 35.5 37.4 internationally which encouraged Export - 7.7 inventory buildup by local costumers VCM 2.9 8.7 – Caustic volumetric sales pos
Slide 6: Market Analysis - PVC
Market Analysis - PVC • Market Share* 9M 2013 9M 2012 16% 17% 3% 7% 81% 76% EPCL Sales Resin Imports Scrap Imports EPCL Sales Resin Imports Scrap Imports • Developments – Purchase contract signed with major PVC customer which resulted in reduction in PVC imports and helped EPCL gain market share – E
Slide 7: Financial Highlights
Financial Highlights • Company posted strong financial performance in 3Q 2013 as compared to 3Q 2012 PKR Million Q3 2013 Q3 2012 Total Revenue 6,105 6,077 Contribution Margin 2,106 1,607 Profit After Tax 127 24 • Variance as compared to 2012 was witnessed on account of: – Higher margins for PVC and
Slide 8: Future Outlook
Future Outlook • Domestic demand of PVC and Caustic are expected to remain stable during 4Q 2013. however the profitability will depend on the dynamics of international margins in vinyl chain. • After completion of first phase of PVC debottlenecking, company added 6 KT of PVC p.a, company is now ini
Slide 9: Thank You
engro polymer & chemicals Thank You
Engro Polymer & Chemicals — Q3 2013 Earnings Presentation on 6ix