PakStox Outlook

Engro Polymer - Analysts Briefing In the first half of 2025, Engro Polymer (EPCL) posted a loss of PKR 3.2 billion due to squeezed Ethylene-to-PVC margins, high gas prices, and plant maintenance costs, despite a 9% revenue increase driven by higher PVC, caustic soda, and hydrogen peroxide sales. PVC volumes rose 21% year-over-year to 115,000 tons, while global PVC prices remained weak at USD 730/ton amid oversupply and soft construction demand. Ethylene prices softened to USD 850/ton by June, compressing margins to USD 275/ton, and caustic soda profitability was also impacted by elevated energy costs. The company anticipates improved PVC demand ahead, supported by construction recovery and falling interest rates, although prices are expected to remain subdued through late 2025. Energy sourcing remains a major challenge, prompting exploration of third-party gas and alternative power options. Net Loss:  Company reported a loss of PKR 3.2 billion (Loss Per Share: PKR 3.55) in H1 2025 ...

For the year ending December 2024, EPCL reported a loss before tax of Rs. 2.3 billion, as gross profit declined by more than 70%. This was due to a 7% decline in revenue and a drastic reduction in gross margin, which fell from over 25% last year to around 7% this year. EPCL reported a profit after tax of Rs. 610 million for 2024, primarily due to a tax reversal. The decline in profitability was attributed to lower PVC prices and increased energy costs. Additionally, financial charges, which increased by 80% for the year, also impacted the bottom line. On a quarterly basis, the fourth quarter was the worst, with EPCL reporting a loss before tax of Rs. 6.7 billion and a gross loss of Rs. 3.3 billion. https://dps.psx.com.pk/download/document/247146.pdf

EPCL: Engro Polymer & Chemicals Limited First Quarter Mar 2024 EPCL reported a loss of Rs. 1.16 billion before tax for the first quarter ending in March 2024. However, the loss after tax was mitigated by some tax reversals. The primary reason for the significant decline in profitability is the drastic reduction in gross margin, plummeting from 20% in the first quarter of last year to just 6% this year. Additionally, sales declined by 8% compared to the same quarter last year. Furthermore, financial charges also saw an increase of over 40% compared to the first quarter of last year. Unfortunately, the management has not provided any details or reasons for the decline in sales and profitability alongside the announcement of financial results. This lack of transparency is a significant concern regarding listed corporates behavior at PSX, as disclosures often conceal more than they reveal. EPCL has a commendable and consistent dividend payout history. Its paid-up capital has remained u...

EPCL First Quarter-Mar 2023 Earnings released. EPS Rs. 1.31 down 50% over previous quarter.  Cash dividend (interim) Rs. 1/- per share. EPCL (Rs.) 1 Month 6 Month 1 Year 44.44 -5.7% -22.9% -46.8%

EPCL: Notes from  Analysts Brief Presentation April 2023 PVC international prices witnessed an uptick in the initial two months of the quarter on the back of renewed demand and restocking activity in India. Prices then softened on the back of a hazy economic outlook, geopolitical turbulence, high volatility in international prices, slower than expected recovery in China, and an oversupply situation developing in India. Ethylene prices saw soft demand during the Lunar New Holidays in China; however, supply crunches kept the upward pressure on prices during the quarter. A slight dip was observed near the end of the quarter owing to bearish crude prices.