Engro Corporation today announced its 3rd Quarter results showcasing a strong overall performance in its businesses. Profitability was augmented by the steady performances of terminal services and power, fertilizer, petrochemicals and the signing of major financial agreements for SECMC.
On a consolidated basis, Engro Corporation’s revenue was PKR 86,431 million for the first three quarters of 2017, a 20% decrease from PKR 107,834 million for the comparative period last year. The reduction is due to the fact that Engro Foods results are no longer consolidated in Engro Corporation results as a consequence of its partial divestment late in 2016. Excluding Engro Foods turnover of the previous period, revenue grew by 18%. Improved market fundamentals throughout the period resulted in improved profitability in the fertilizer and petrochemicals businesses.
The profit-after-tax (PAT) from continuing operations (i.e. excluding Engro Foods) increased from PKR 8,727 million to PKR 11,646 million – up by 33%. Partial divestment of fertilizers and foods businesses during 2016 as well as adverse taxation changes introduced through Finance Act 2017 resulted in decrease in the profit attributable to shareholders from PKR 8,583 million in 9M16 to PKR 6,916 million in 9M17.
Engro Corporation’s long-term rating was upgraded to AA while maintaining a short-term rating of A1+.