Engro Fertilizers Limited (Efert) has informed the Pakistan Stock Exchange Limited (PSX) that the Board of Directors of the Company, in their meeting held on February 15, 2024, recommended a final cash dividend for the year ended at Rs. 8.00 per share, i.e. 80%. This is in addition to interim cash dividends already paid at Rs. 12.50 per share, i.e. 125%.
On a consolidated basis, Engro Fertilizers posted a profit after tax of PKR 26.2 billion (PKR 16 billion in 2022) with earnings per share (EPS) of PKR 19.61 in 2023, mainly on the back of increased production from long-term reliability projects, cost optimization, efficient working capital management and higher interest income.
Engro Fertilizers, Pakistan’s premier seed-to-harvest solutions provider, achieved record urea production of 2.3 million tons in 2023 to support the Government’s efforts to ensure affordable and abundant supplies for the farmers.
The company achieved this feat and continued to play a pivotal role towards enabling Pakistan’s food security amidst the headwinds of tough macroeconomic conditions, the imposition of a higher super tax, and gas price hikes. Engro Fertilizers was additionally affected by the steep Rupee devaluation as its 950,000 tons Base Plant supplies gas under Petroleum Policy 2012 pricing, which is dollar-pegged due to its linkage with crude oil rate.
Engro fertilizers’ urea production surged by 18.3 per cent compared to the year 2022 (1.95 million tons) due to the improved operational performance of both EnVen and Base Plants. Consequently, the Company’s urea sales witnessed an uptick of 20.3 per cent to reach 2.32 million tons, while its market share also increased to 35 per cent.
In 2023, the robust domestic urea manufacturing industry enabled import substitution to USD 2.3 billion, including Engro Fertilizers’ share of USD 835 million. Further, in 2023, the Company contributed nearly PKR 34.7 billion towards the national exchequer through Government taxes, duties, and levies, compared to PKR 11.6 billion last year.
To sustain domestic urea production levels and safeguard the food security of Pakistan, Engro Fertilizers and other major fertilizer manufacturers are investing heavily in the Gas Pressure Enhancement Facilities (PEF) project. The expected share of Engro Fertilizers’ capital expenditure in this project is over USD 100 million.