Engro Corp Posts Over Rs. 44 Billion Profit for 2020

Pakistan’s premier conglomerate, Engro Corporation (PSX: ENGRO), announced its financial results for the year ended December 31, 2020.

The company posted a consolidated Profit After Tax (PAT) of Rs. 44.39 billion – up by 46 percent compared to Rs. 30.58 billion in 2019.

Engro’s consolidated revenue grew by 10 percent, from Rs. 225.76 billion during 2019 to Rs. 248.81 billion primarily attributable to higher revenue from full-year operations of Thar energy projects.

On a standalone basis, the company posted a profit of Rs. 16.30 billion against Rs. 14.30 billion for the comparative year, translating into an EPS of PKR 28.29 per share. The increase in standalone profitability is primarily on account of higher dividends from subsidiaries and full intercorporate tax relief on dividends in 2020 versus partial relief in 2019, said the statement issued by the company.

The company announced a final cash dividend of Rs. 2/- per share for the year. This is in addition to Rs. 24/- per share announced during the year, bringing the cumulative payout to PKR 26/- per share.

Financial Performance – Segmental Perspective


Despite the unprecedented challenges faced in 2020, the fertilizer business has achieved a historic milestone of the highest ever urea production of 2,264 KT compared to 2,003 KT produced in 2019. This increase of 13 percent is primarily due to better plant utilization supported by minimal outage days and higher gas availability.

This was offset by lower DAP offtake and removal of GIDC, leading to a reduction in Urea prices. Profit after tax for the year stood at Rs. 18.13 billion showing a growth of 7 percent compared to 2019.


Revenue for the polymer business decreased by 7 percent compared to 2019, mainly due to plant shutdown during the lockdown period in 1H 2020. The fall in volumes was offset by cost efficiencies and higher PVC prices, which rallied throughout 2H 2020 on account of global supply constraints. This enabled the Company to record the highest ever profitability in its history, clocking at Rs. 5.73 billion, 55 percent higher than last year.

Despite the challenges faced in 2020, Engro continued to build on its experience in the Petrochemicals vertical and made considerable progress on the feasibility study of a polypropylene facility based on a propane dehydrogenation plant.

Energy & Power

Energy and Related Mining and power plant operations at Thar continued smoothly, with approximately 3.8 million tons of coal supplied by the mine and a dispatch of 4,032 GWh to the national grid by the power plant during the period. Construction for the expansion of the mine, doubling its existing capacity, is underway, with the contractor mobilized at the site.

The Qadirpur Power Plant, which operates on permeate gas, is facing gas curtailment due to the depletion of the Qadirpur gas field. To make up for this shortfall, the plant has been made available on mixed mode. During the period, the plant dispatched a Net Electrical Output of 550 GWh to the national grid with a load factor of 29.5 percent compared to 58.8 percent last year.

In 2020, EPQL entered into an MOU with the committee for negotiations with IPPs, whereby EPQL and CPPA-G will enter into a binding agreement such that all the outstanding payments on 30th November 2020 would be made to the company in two installments during 2021. Consequently, in the larger national interest, EPQL would reduce its ROE on the business.


In the terminals business, Elengy Terminal handled 72 cargoes during the year, delivering 215.4 bcf re-gasified LNG into the SSGC network, equivalent to more than 12 percent of the country’s gas requirements. Meanwhile, Engro Vopak Terminal broke the record of handling 246 Kt LPG compared to the previous record of 240 Kt in 2017. On the other hand, EVTL also witnessed a volumetric decline in chemicals, attributable to a reduction in chemical volumes on account of lower import of Phos Acid and Paraxylene due to COVID-19.


Engro continued to invest and progress in its connectivity vertical through Engro Enfrashare strengthening its footprint to a portfolio size of 1,265 operational sites, catering to all Mobile Network Operators (MNOs) in Pakistan. This portfolio expansion has led to a significant increase in the market share as an Independent TowerCo from 18 percent in 2019 to 41 percent in 2020.