KARACHI: Engro Fertilizers has announced a net profit of Rs4.41 billion, translating into the earnings per share (EPS) of Rs3.3 for the quarter ended September 30, 2021, which is 37.2 per cent lower than the profit of Rs7.03 billion (EPS: 5.27) in the corresponding period last year, a bourse filing said on Wednesday.
The company also announced a cash dividend of Rs3.5/share, which is in addition to the interim dividend of Rs8/share already paid to the shareholders.
During the period, urea production reduced 7.9 per cent, as the EnVen plant experienced a turnaround due to which sales marginally declined to Rs37.38 billion, compared with Rs37.4 billion in the same period last year.
The local urea price currently stands at Rs1,768/bag. The discount to the international urea price has widened to 75 per cent, as it has increased to $675/tonne. Urea industry has grown 9 per cent attributed to improved farm economics.
Phosphate fertiliser; however, saw a decline of 15 per cent because of record high DAP prices.
The international DAP prices have increased in a higher proportion, compared with the local prices. This presents a further possible hike in DAP prices, going forward. The current local DAP price has increased to Rs6,463/bag, as 60 per cent of the demand is met through imports.
As per the company management, elevated DAP prices would slow down the demand in the Rabi season. Therefore, an immediate and sustainable solution is required to alleviate the burden on the farmers.
Engro Fertilizers has supported the government’s drive to enhance tax base and; therefore, discontinued sales to unregistered dealers since April 2021.