NICL has started the commercial operations of the first phase of expansion of Caustic Soda

Nimir Industrial Chemicals (NICL) & Nimir Resins Limited (NRSL) | Chemical | Analyst Briefing Takeaways

NICL and NRSL conducted their corporate briefing sessions today to discuss the financial performance of FY22 & 1QFY23 along with the company’s future outlook.

To recall during FY22 & 1QFY23 NICL posted PAT (profit after tax) of PKR 1.6bln & PKR 215mn respectively translating into EPS of PKR 14.43/share & PKR 1.95/share respectively.… Continue

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Urea import is needed to meet the demand-supply gap.

As per the latest data compiled by NFDC, in Oct’22, Urea offtakes declined by 16%YoY/15%MoM to 430k tons.

The Rabi 2022-23 season started with an opening inventory of 294k tons of urea. The total availability of urea would be around 3,494k tons comprising of 2,937k tons domestic production and 263k tons of imported supply.… Continue

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LOTCHEM is hopeful that its demand would remain intact despite bleak outlook in textile industry

Lotte Chemical Pakistan Limited (LOTCHEM) held its corporate briefing for 9MCY22 yesterday, wherein the following was discussed:

· LOTCHEM is the only manufacturer of PTA in the country, with an annual capacity of 500KT. The annualized market is estimated at ~750KT.… Continue

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Fauji Fertilizer Company expects urea demand to hit 6.6mn tons in 2022

Fauji Fertilizer (FFC) held its corporate briefing today to discuss financial result and future outlook of the company.

The management expects Urea demand to hit 6.6mn tons in 2022 compared to 6.3mn tons recorded in 2021. However, DAP demand is expected to be down at 1.4-1.5mn tons compared to 1.9mn tons recorded in 2021 due to significantly higher prices.… Continue

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Fauji Fertilizer Bin Qasim – outlook

The management of Fauji Fertilizer Bin Qasim Limited (FFBL) held a corporate briefing session on 3rd Nov’22 to discuss the 9MCY22 financial result and future outlook.

Brief Takeaways

· To recall, the company posted a profit after tax of PKR 1,714mn (EPS: PKR 1.33) in 9MCY22 against PKR 6,150mn (EPS: PKR 4.78) in SPLY, down by 72% YoY.… Continue

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Pakistan Fertilizer Sector sees leaser sale in Oct 2022

According to provisional fertilizer offtake data of Oct’22, urea offtake declined by 16% YoY to 429k tons against 514k tons in SPLY. Urea sales of EFERT, FFC and FFBL (combined) and FATIMA plummeted by 40%, 6% and 5% YoY, arriving at 97k tons, 233k tons and 75k tons, respectively.… Continue

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Lotte Chemical Pakistan posts Strong earnings 3QCY22

LOTCHEM posted NPAT of PKR2.7bn (EPS: PKR1.79) in 3QCY22, up c.3.0x YoY and 91% QoQ. The result is in line with our expected NPAT of PKR2.6bn (EPS: PKR1.74). The management opted out of a payout this quarter against our expectation of a PKR1.0/sh.… Continue

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Fauji Fertilizer Co announced an interim cash DPS of PKR3.18

Fauji Fertilizer Co. (FFC) has posted 3QCY22 unconsolidated NPAT of c.PKR5.2bn (EPS: PKR4.12), up 56% QoQ but down 19% YoY, missing our projected EPS of PKR4.60. The variance primarily stems from higher-than-expected distribution expenses and lower other income. This takes 9MCY22 NPAT to PKR14.8bn (EPS: PKR11.64) down 7% YoY.… Continue

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Fauji Fertilizer Bin Qasim 3QCY22 Result Review

Fauji Fertilizer Bin Qasim Ltd (FFBL) has posted an unconsolidated loss of PKR1.7bn (LPS: PKR1.31) for 3QCY22, compared to NPAT of PKR2.3bn (EPS: PKR1.76) in 3QCY21. The result is against our earnings expectation of PKR1.77/share, owing to higher-than-expected exchange losses to the tune of PKR4.2bn.… Continue

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Fauji Fertilizer Company is expected to disclose its 9MCY22’s financial result on 26th Oct’22

Fauji Fertilizer Company Limited is expected to disclose its 9MCY22’s financial result on 26th Oct’22, where we expect earnings to clock-in at PKR 15,105mn (EPS: PKR 11.87), down by 5% YoY given super tax levied on PBT of CY21 and 9MCY22.… Continue

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FFBL: Earnings expected to decline by 46% YoY in 3QCY22

Fauji Fertilizer Bin Qasim Limited (FFBL) is scheduled to announce its financial result for 9MCY22 on 25th Oct’22, where we expect the company to post a profit after tax of PKR 4,634mn (EPS: PKR 3.59), down by 25% YoY. The fall in bottom-line comes on the back of i) super tax imposed on the profit before tax of CY21 and 9MCY22, and ii) decline in urea and DAP offtake by 4% and 26% YoY, respectively.… Continue

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ICI Pakistan Limited (ICI) announced its 1QFY23 financial result today

· ICI Pakistan Limited (ICI) announced its 1QFY23 financial result today where the company posted a profit after tax (PAT) of PKR 1,800mn (EPS: PKR 19.49), down by 50% YoY compared to PKR 3,602mn (EPS: PKR 39.00) during SPLY. The decline in earnings was due to absence of a gain on re-measurement of existing interest in NutriCo Pakistan (PKR 1,847mn during 1QFY22), higher taxation, and higher finance cost.… Continue

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IDTechEx release essential market forecasts for the chemical recycling of plastic waste

Creating a circular economy is an essential sustainability target for stakeholders across the plastic value chain. Conventional mechanical recycling methods are necessary, but given the inferior product properties, this downcycling will only go so far; this is where chemical recycling and dissolution processes enter the picture.… Continue

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Engro Corporation announced a cash dividend of PKR 10.00/share in 3QCY22

Engro Corporation Limited (ENGRO) announced its 3QCY22 financial result with a consolidated profit after tax of PKR 8,017mn (EPS: PKR 13.91) compared to PKR 6,119mn (EPS: PKR 10.62) in SPLY, up by 31% YoY. On a cumulative basis, the consolidated earnings declined by 33% YoY, clocking-in at 15,431mn (EPS: PKR 26.78).… Continue

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Engro Polymer & Chemicals: Hydrogen Per Oxide project comes online in 2023. De-bottlenecking of VCM on card.

Engro Polymer & Chemicals (EPCL) held its corporate briefing today to discuss 3Q2022 financial result and future outlook.

Global PVC prices declined during 3Q2022 amidst (1) demand slowdown on back of rising inflation, and (2) lockdown in China owing to COVID.… Continue

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Engro Corporation is anticipated to announce its 3QCY22 on 18th Oct’22

Engro Corporation Limited (ENGRO) is anticipated to announce its 3QCY22 financial result on 18th Oct’22, where we expect the company’s consolidated earnings to arrive at PKR 7,817mn (EPS: PKR 13.57), up by 28% YoY. On the fertilizer business front, EFERT’s net profit settled at PKR 4,182mn (EPS: PKR 3.13), down by 5% YoY during 3QCY22 owed to reduction in urea and DAP offtake by 26% and 50% YoY, respectively due to flash floods across the country during the quarter.… Continue

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ICI Pakistan Limited is scheduled to announce its 1QFY23 financial result on Oct 19th

ICI Pakistan Limited (ICI) is scheduled to announce its 1QFY23 financial result on Oct 19th, 2022. We expect the company to post a profit after tax (PAT) of PKR 1,679mn (EPS: PKR 18.18) compared to a profit after tax of PKR 3,602mn (EPS: PKR 39.00) during the same period of last year.… Continue

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EFERT launches CAPEX for the maintenance of plant over USD 50mn.

The management of Engro Fertilizer Limited (EFERT) held an Analyst Briefing session on 12th Oct’22 to discuss the company’s performance and future outlook.

Brief Takeaways

·        To recall, the company posted a consolidated net profit of PKR 9,595mn (EPS: PKR 7.19) in 9MCY22 compared to PKR 14,921mn (EPS: PKR 11.17) in 9MCY21, down by 36% YoY.… Continue

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Engro Polymer & Chemicals announced a cash dividend of PKR 2.50/share in 3QCY22

Engro Polymer & Chemicals Limited (EPCL) announced its 3QCY22 financial result today where the company posted a profit after tax (PAT) of PKR 2,257mn (EPS: PKR 2.36), down by 27% YoY compared to PKR 3,107mn (EPS: PKR 3.24) during SPLY. On a QoQ basis, earnings decreased by 3%.… Continue

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Engro Fertilizers announced a cash dividend of PKR 3.00/share

Engro Fertilizers Limited (EFERT) announced the financial result for 9MCY22 today, posting a consolidated profit after Tax (PAT) of PKR 9,595mn (EPS: PKR 7.19) compared to PKR 14,921mn (EPS: PKR 11.17) in SPLY owed to super tax imposed on the profit before tax of CY21 and 9MCY22 coupled with hefty deferred tax adjustment.… Continue

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Engro Polymer and Chemicals to announce its 3QCY22 financial result tomorrow

Engro Polymer and Chemicals Limited (EPCL) is scheduled to announce its 3QCY22 financial result on Oct 12th, 2022. We project the company to post a profit after tax of PKR 1,771mn (EPS: PKR 1.95), down by 43% YoY | 24% QoQ during 3QCY22.… Continue

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EFERT: Profitability and dividend to rebound

Engro Fertilizer (EFERT) is expected to post 3QCY22 net profit of PKR4.8bn (EPS: PKR3.61), up from a loss of PKR98mn in 2Q. This is majorly due to (i) lower effective tax rate, (ii) higher Urea and DAP prices, and (iii) higher trading margins on DAP.… Continue

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A review of Pakistan fertilizer Sector sales in Sept 22-

As per the provisional fertilizer offtake data of Sep’22, urea offtake climbed up by 4% YoY to 508k tons compared to 487k tons in SPLY. Urea sales of EFERT witnessed a jump of 22% YoY, settling at 164k tons. Meanwhile, offtake of FFC and FFBL (combined) and FATIMA declined by 5% and 15% YoY, arriving at 237k tons and 79k tons, respectively.… Continue

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“Sarsabz Paagh” award recognizes top-performing dealers

In our region, a turban or “paagh” is considered a symbol of honor. Accordingly, Fatima Fertilizer invited 180 of its top performing dealers from all over Pakistan to attend a special awards ceremony held in recognition of their outstanding performance and support to the company.… Continue

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The fertilizer sector looks good for investment

· We maintain our “over-weight” stance on the fertilizer sector due to its stable demand dynamics, attractive dividend yield and reasonable pass-on ability.

· The upcoming gas tariff hike of 42% and 82% for feed and fuel gas will increase the cost, however we believe that the manufacturers have decent pricing power given the significant discount between local and international urea prices.… Continue

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