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