Engro Fertilizers Limited’s net profit decreased by 40 percent during 2016, according to a notification sent to the Pakistan Stock Exchange on Wednesday.
The company reported a profit of Rs9 billion or Rs6.78 per share for the year ended on December 31, 2016. This is 40 percent down compared to Rs15 billion or Rs11.30 per share the fertilizer earned in the previous year. The company also offered a final cash dividend of Rs2.50 in addition to an interim cash dividend of Rs4.5 .The full year dividend of the fertilizer amounted to Rs7 at the end of 2016.EFERT share was down 1.19pc or Rs 0.84 to Rs 69.68 per share with a total of 17.4 million shares traded.
“The result was below market expectations,” said AKD Research’s analyst report.
The lower declared profit was in the wake of a decline in gross profit margin due to 9pc (YoY) reduction in urea prices, 71pc year on year decrease in other income because of reduction in term deposit placements and 32 percent decline in finance cost.
Revenue for the 12 month period, ended December 31, clocked in at Rs69 billion against Rs85 billion, down 18.2 pc, in the outgoing year.
Sequentially, EFERT reported an increase of 18 pc (QoQ) to close at after tax profit of Rs3.37 billion or Rs2.53 per share in fourth quarter of 2016.
“[This surge] came on account of 61 pc quarter on quarter growth in topline to Rs30.01 billion which was caused by an increase in urea and imported DAP offtake to 630,000 and 292,000 tons driven by Rabi season,’’ AKD Research report said.
