Engro Corporation Limited expects massive jump in PAT for the period 4QCY20

Engro Corporation Limited (ENGRO) is expected to announce its 4QCY20 financial result on 17th Feb 2021, where we expect the company to post a consolidated profit after tax (PAT) of PKR 8,741mn (EPS: PKR 15.17), up by a massive 142% YoY. On the fertilizer business front, EFERT’s profitability clocked-in at PKR 6,643mn, an uptick of 4% YoY during 4QCY20 amid i) 7% YoY jump in DAP prices and ii) re-measurement gain on the provision of GIDC worth PKR 2,121mn recorded in the quarter.

Moreover, Engro Polymer & Chemicals Limited (EPCL) ‘s profitability clocked-in at PKR 3,627mn (EPS: PKR 3.99), massively up by 4x YoY owing to PVC margins climbing up by 52% YoY tagged with the re-measurement gain on the provision of GIDC of PKR 680mn in 4QCY20. Furthermore, Engro Powergen Qadirpur Pakistan Limited (EPQL) posted a bottom-line of PKR 48mn (EPS: PKR 0.15) in 4QCY20 vis-à-vis PKR 792mn (EPS: PKR 2.45) during SPLY, witnessing a plunge of 93% YoY.

Additionally, we expect the Elengy business to post earnings of PKR 699mn, with an assumption of handling ~608/mmcfd of RLNG during 4QCY20, according to our estimates. Likewise, the contribution from the Thar business (EPTL & SECMC) during 4QCY20 is expected at PKR 2,467mn. Alongside the result, we expect the company to announce a final cash dividend of PKR 2.00/share (PKR 26.00/share in CY20).

Courtesy – AHL Research

 

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