Engro Polymer and Chemicals Limited’s (EPCL) consolidated profit increased three-fold to Rs. 2.05 billion, up by 211.09% for the year ending on December 31 2017, as compared to a profit of Rs. 659.93 million in the previous year. This profit is mainly due to increased sales.
Board of directors recommended a final cash dividend of Rs. 0.80 per share. This is in addition to the interim cash dividend already paid at Rs. 0.45 per share. The new entitlement will be paid to shareholders whose name will appear in the register of members on March 22 2018.
Earnings per share increased to Rs. 3.09 in the year under review from Rs. 0.99 in the previous year.
Company’s revenue increased 21% to Rs. 27.73 billion in the year, compared with Rs. 22.85 billion last year due to higher PVC margins, higher realized prices (USD 1,161/ton, up by 11% YoY) and volumetric growth amid debottlenecking of 17K tons.
Financial cost decreased to Rs. 819 million, which was down by 11% as compared to last year’s cost of Rs. 919 million.
Cost of sales rose 14.5% to Rs. 21.66 billion from Rs. 18.91 billion. Finance cost lowered to Rs. 820 million from Rs. 920 million.
On the other hand, other income increased to Rs. 137 million in the year under review from Rs. 21 million in the previous year.
EPCL’s share price increased 1.82%, or Rs. 0.48, to close at Rs. 26.88. It was the second-most traded share on Wednesday with 26.3 million shares traded.
The firm remains the industry leader with 73% market share in Pakistan. Engro Polymer is a subsidiary of Engro Corporation, involved in the manufacturing, marketing and distribution of quality Chlor-Vinyl allied products and PVC under brand name ‘SABZ’.