24 April 2004	Saturday	03 Rabi-ul-Awwal 1425

KARACHI, April 23: Engro Chemical Pakistan Limited posted net profit for the first quarter (Q1) ended March 31, 2004 at Rs274 million, up from Rs234 million in the corresponding quarter of the previous year.

The results were released by the company on Friday when the stock market witnessed heavy casualties. Possibly on account of that and not as a reaction to the financial figures announced by the board, the share in Engro slipped by Rs5.20 on Friday to close at Rs99.75 with trading seen in 8.5 million shares.

Profit before tax improved 16 per cent to Rs433 million, from Rs374 million in Q1 last year. Net sales grew 6 per cent to Rs1,671 million for the quarter under review, from Rs1,577 million in the same time of 2003.

Management report tagged to the Q1 accounts stated that the increase in earnings for the quarter was attributable to improved and profitable performance of NPK and Seed businesses. But the directors complained that the benefit of higher sales volume achieved in the urea business was completely offset by the net impact of the expiry of 10-year concessional gas price on expansion feedstock that expired in September 2003.

The company also stated that the overall market demand for urea during the period under review had increased by 19 per cent, compared to the same period last year, where sales were relatively lower mainly on account of pre-stocking by the dealers in December 2002.

The company's urea sales were up 8 per cent to 180,000 tons. The operating performance of Daharki urea plant was stated to have remained "excellent". Production at 238,000 tons was marginally below the first quarter last year.

The company stated that sale of NPK fertilizer produced by the company was 22,000 tons versus 19,000 tons sold in Q1 of 2003. The NPK plant production at 31,000 tons represented record quarter capacity utilization of 124 per cent. During the period, Engro Chemical did not transact any business in other purchased fertilizer as against 12,000 tons of imported product sold last year.