ENGROH reported a net profit of PKR 9.86 billion (EPS: PKR 20.48) in CY24, reflecting a 5% decline from the previous year’s PKR 10.35 billion (EPS: PKR 21.50), primarily due to the bumper dividend received from Engro Corporation in 2023. Standalone profitability of Engro Corporation increased to PKR 18.80 billion (EPS: PKR 35.08), driven by higher dividends from the fertilizer business, successful cost optimization initiatives, and lower tax expenses due to the retrospective application of super tax last year.
However, this was partially offset by an impairment of long-term investments. Engro’s dividend and royalty income grew by 3% YoY to PKR 24.5 billion in CY24. Net profit from Engro Corporation’s continued operations stood at PKR 21 billion (EPS: PKR 38.57), marking a 7% YoY increase. Consolidated revenue for CY24 reached PKR 540 billion, reflecting a 122% YoY surge, primarily driven by higher urea prices and cost efficiencies.
However, profitability was partially offset by lower PVC demand, a reduced core delta, higher energy prices, and increased financing costs. Engro Holdings’ dividend income declined 43% to PKR 6.7 billion due to the bumper dividend from Engro Corporation in 2023. Quoted shares surged 144% YoY to PKR 7.7 billion, driven by PSX’s exceptional performance, while other income rose 67% YoY to PKR 0.1 billion on higher interest income.
The equity portfolio comprised Banks (48%), E&P (27%), IT (14%), Cement (5%), and Others (6%), delivering a 113.6% return, outperforming KSE-100 and mutual funds in Pakistan. Thermal energy assets were classified as discontinued operations, with the divestment process ongoing and stakeholder approvals underway. Engro Eximp Agriproducts (Pvt) Limited’s divestment is also in progress, with an SPA signed with MAP Rice Mills to exit the rice business.
The restructuring with Dawood Hercules was completed on January 1, 2025, transferring all assets—excluding Engro Corporation shares—worth PKR 16.94 billion, along with PKR 6.88 billion in liabilities, from DH Corporation Limited to DH Partners Limited.
Operational Enfrashare sites grew 12% YoY to 4,063, with 263 new towers added, bringing the total to 4,215 and capturing a 36% ITC colocation market share. The tenancy ratio improved to 1.26x from 1.21x. The company finalized an amalgamation agreement with PMCL for 10,617 towers. Postacquisition, its total towers will increase to 14,000, securing a one-third market share.
Pakistan’s potential 5G rollout could push total tower demand beyond 100,000. Of the 44,000 existing sites, 8,000 are independent, while 36,000 belong to mobile networks, with Enfrashare holding a 50% share in the independent towers market. However, a nationwide 5G rollout is unlikely, with limited deployment expected due to the higher marginal cost, increasing demand for smaller towers, as per management.
EFERT posted revenue of PKR 256 billion and profit of PKR 28.3 billion in CY24, driven by higher urea prices, cost optimization, and reliability projects. Management anticipates challenges in specialty fertilizer demand due to farm economics. EPCL’s revenue declined 7% YoY to PKR 76 billion, with a net loss of PKR 0.2 billion, impacted by weak global commodities, higher PVC imports, and subdued domestic construction. Despite this, volumes remained stable at 206 KT. Management expects bearish international prices but a domestic demand recovery with easing inflation. Engro Elengy & Vopak’s chemical handling rose 30% YoY to 1,238 KT, supported by improved LC availability and higher LPG imports.
The LNG terminal managed 72 cargoes with a 97% availability rate. LPG margins improved, securing a 60% market share. Management expects further growth in CY25. Engro Energy’s profit fell to PKR 2.1 billion due to potential power purchase agreement changes, partially offset by stable mining operations and 4,440 GWh in power dispatches. EPQL secured a generation license to use Badar Field gas as an alternative fuel. Engro Eximp FZE’s revenue rose 26% YoY to USD 510 million, with traded volumes up 18% YoY to 788 KT.
FrieslandCampina Engro’s revenue reached PKR 107 billion, driven by retail expansion and stable volumes. Profitability surged 46% YoY to PKR 2.2 billion on cost efficiencies. Management flagged concerns over the sales tax on packaged milk and hopes for government relief. The Vopak Terminal lease is set to expire in mid-2026, with management optimistic about its renewal. Looking ahead, management remains positive about medium-term economic prospects.
Important Disclosures
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