Engro Polymer announces cash dividend of Rs7/share

KARACHI: Engro Polymer and Chemicals Limited (EPCL) has declared a final cash dividend of Rs7/share along with the financial results for the half-year ended June 30, 2021, which is in addition to an interim dividend of 8 paisas/share already paid to the shareholders.

The EPCL announced a net profit of Rs7.26 billion, translating into the earnings per share (EPS) of Rs7.99 for the half-year ended June 30, 2021, compared with the profit of Rs222.60 million and the EPS of 24 paisas in the corresponding period of the last year.

During the first-half of CY21, the sales went up 137 per cent due to higher production and higher PVC prices.

The rise in PVC and caustic sales is witnessed mainly on the back of low base due to the Covid-imposed lockdown last year.

For the quarter ended June 30, 2021, the EPCL announced a net profit of Rs3.12 billion and the EPS of Rs3.44 as against the profit of Rs29.78 million and the EPS of 3 paisas.

During the second quarter of CY21, the net sales witnessed an increase of 155 per cent to settle at Rs14.825 billion, which is mainly attributable to low base of production during the second quarter of CY20, while PVC prices are up 55 per cent.

An analyst at Arif Habib Limited said despite the decline in the caustic market, the company’s market share has reached 33 per cent. Pipes and fittings remain the major application of PVC in Pakistan, which consume 54 per cent of the total PVC.

“[The] PVC prices declined this quarter in the region due to [the] Covid-related lockdown, monsoon season and improved supply on the back of availability of plants after the turnaround season.”

The EPCL expects that the PVC prices will remain range-bound. However, the ethylene prices are expected to decline as new capacities come online.

Moreover, the EPCL management has decided to shelve the LABSA project due to the supply and demand situation in the market.

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