Engro Fertilizers Limited has announced its financial results for the year that ended on 31 December 2021.

According to the notification filed to the Pakistan Stock Exchange (PSX), the company has booked its highest ever profit of Rs. 21.1 billion, increasing by 16.40 percent as compared with a profit of Rs. 18.13 billion earned in 2020.

Along with the results, the company also announced a final cash dividend of Rs. 5 per share, which is in addition to the interim dividends already paid at Rs. 11.50, cumulating into a full-year dividend of Rs. 16.5/sh, which is the highest ever dividend in history.

The rise in profits was due to higher urea offtake and lower finance costs.

During the year, the net sales of the company increased by 25 percent to Rs. 132.36 billion, as compared to Rs. 105.84 billion. The margins of the company went up to 33 percent from 32 percent during CY20 despite the higher gas rate charges.

The company showed an increase of 7ppts at the gross level in 4QCY21 on a QoQ basis mainly due to a one-off impact of around Rs. 1.7 billion of lower depreciation owing to a change in useful life assessment.

The management apprised that the company ran its Enven plant at full capacity during the last quarter compared to last quarter, where the Enven plant was shut due to maintenance, this helped achieve gas efficiencies.

The gross profits were increased to Rs. 44.07 billion, as compared to Rs. 34.25 billion due to higher sales in 2021. The other income of the company increased to Rs. 1.79 billion in 2021 as compared to Rs. 1.66 billion.

The finance cost came down by 50.50 percent to Rs. 1.60 billion from Rs. 3.23 billion.

The earnings per share of the company were reported at Rs. 15.80 as compared to Rs. 13.58.

Source: Pro Pakistani