KARACHI, July 25: Engro Chemicals, Pakistan’s second largest urea manufacturer, on Friday reported a 41 per cent rise in earnings for half year of calendar year 2008 thanks to higher prices and stronger sales.

Net profit for the six months to June 30 was at Rs1.556 billion, compared with Rs1.1 billion in the year-ago period.

The result was in line with market expectations. Five analysts surveyed by Reuters forecast net profit in a range of Rs1.48 billion and Rs1.65 billion.

“The increase in earnings is primarily due to higher urea sales and rise in prices,” said Ayub Ansari, an analyst at Invest Capital Investment Bank Ltd.

Sales in the first half of 2008 increased to Rs8.84 billion, compared with Rs8.12 billion in the year-ago period.

While cost of production decreased to Rs5.44 billion in six months ending on June 30 compared with Rs6.1 billion in the same period last year.

Engro also announced an interim cash dividend of Rs2 per share.—Reuters