October 23, 2002	Wednesday	Sha’aban 16,1423

KARACHI, Oct 22: Engro Chemical Pakistan posted a net profit of Rs854 million for the period January-September 2002, up 21 per cent from the level of last year.

Higher sales, reduced NPK fertilizer losses and higher dividend from a joint venture accounted for the improved profit, according to the company.

Based on these results the Board of Directors which met here on Tuesday declared a second interim dividend of Rs2 per share. The total dividend to date includes the first interim amounts to Rs4 per share which is unchanged from last year’s level.

The board reviewed the company’s business results for the period under review.

Engro’s sales volume increased by 12 per cent over the corresponding period of last year resulting in a market share of 20 per cent.

There was a sizable increase in the sales of phosphatic and potassic fertilizers as the company continued its efforts to promote balanced fertilization.

Overall the sales revenue of the company increased by a significant 36 per cent. The production of Engro Urea was up by an appreciable 18 per cent. Smooth plant operations and absence of a planned maintenance shutdown during this period enabled the attainment of record production.

Engro said the fertilizer sales outlook over the balance of the year will be dependent on availability of irrigation water which is expected to be favourable compared to last year.

The company has announced its intention to build a world scale Ammonia Urea fertilizer complex in the Sultanate of Oman. A memorandum of understanding has been signed between Engro and Oman Oil Company to develop the project which will be set up as a joint venture.

The project is premised on utilizing Omani gas and Engro’s expertise to build and operate cost effective plants. The project envisages refurbishing and relocating an existing ammonia plant and constructing a new urea plant and allied utilities. The plant is being sized to produce 850,000 tons of urea per annum for placement in the global markets including Pakistan.

The joint venture partners propose to fast track the project and are targeting to complete the detailed technical and economic feasibility studies before middle of 2003. Oman Oil Company is a commercial company 100 per cent owned by the Government of the Sultanate of Oman.

The proposed project will be Engro’s first venture overseas and will represent a major industrial undertaking by a Pakistani entity outside the country.

Engro was confident of making this pioneering venture successful thereby opening new doors to integrate the country and the company into the global economy.—APP