ENGRO: Financial Results FY Dec 2023

Engro Corporation (PSX: ENGRO) announced Financial Results for the Year End 31 Dec 2023 on Feb 26, 2024.

CASH DIVIDEND: A Final Cash Dividend for the year ended December 31, 2023 @ Rs. 2.00 per share i.e. 20%. This is in addition to the interim cash dividends already paid at Rs. 46.00 per share i.e. 460%

Engro reported unconsolidated earnings of Rs. 17.6bn compared to Rs. 21.2bn in FY22, a decline of 17%. This was primarily attributed to additional super tax on dividends and lower interest income.

ENGRO further disclosed:

Divestment Plans: Engro Corporation is considering divesting its thermal energy assets (stakes in EPQL, EPTL, and SECMC) through a share sale process. Discussions are ongoing with Liberty Mills Limited and other relevant parties.

Accounting Impact Due to IPP Rules: Specific accounting exemptions (outlined in SECP SRO 986) for Independent Power Producers (IPPs) create a disparity between the higher Net Assets reported in Engro's Consolidated Financial Statements and the actual recoverable amount of its thermal assets.

Remeasurement: To address this, Engro has recognized an accounting impact of Rs. 29,950 million (Owners’ Share: Rs. 13,295 million) in its consolidated financial statements for 2023. This does not affect the Standalone Financial Statements, where recoverable value remains higher than carrying amount.

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