Engro Corporation in Great Trouble. From Internal Rifts to Legal Battle With the Ministry

[D'Invincible]

بھائی آپ بے شک اینگرو سے سالہا سال سے وابستہ ہوں مگر اینگرو کارپوریشن میں اسد عمر کی کارکردگی کے بارے میں ہمارا دوست پٹواری عامر علی زیادہ جانتا ہے
(bigsmile)​

یہ پٹواری کچھ زیادہ ہی ڈھیٹ اور بے شرم ہے

 

[amir_ali]

Yeah Nooras are targetting him and Engro for a while .

Engro is going through a rough patch but only beacuse the govt is trying to sabotage it. It should invest in a media house (like the Lakson Conglomarate that owns Express group) so it can also run hit pieces agasint its competetars and blackmail the gvt(bigsmile)

Essential insurance policy nowdays it seems. Maybe Engro should all join politics like Nooras.
Then Magically they will always make a profit no matter what they do.
Loan nikalo maaf karao, send money abroad via hawal buy prperties in London and Washington.
Dont pay taxes, gasbills,electricity bills for 20 yr get special exemption for import. Shut down competeters.

Repeat as needed. Perfect buisness model:lol:

A few details on Asad Umer and Engro below

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In the year Asad Omar became CEO Engro in 2004 sales were 13 billion rupee and profit after tax was 1.5 billion rupees. In his last year as CEO 2011 sales were 117 billion and profits were 8.5 billion...In other words sales increased by more the 100 billion and profits by 7 billion in 7 years. This despite the fact that gas to its new fertilizer plant was being given at a curtailed rate much below contractual commitments throughout 2011

Asad Omar started Engro foods with investments in dairy,
ice cream and meat including buying a company in North America with Engro food brands selling in Walmart and all other leading stores in US and Canada. They expanded their PVC plant and started production of VCM, EDC and caustic soda. A 220 MW power plant was set up from gas which was being flared in the air by the govt for more than ten years. Asad Omar
set up the most modern rice plant in Pakistan, set up the only
cryogenic storage facility in engro vopak and set up the biggest urea fertilizer plant in the world

The fertilizer investment was started in Jan 2007 more than a year
before Zardari and company came into power. There was no shortage of
gas at that time. The first time gas curtailment to fertilizer
industry started was in may 2011 almost 4.5 years after Engro started its fertilizer project

Gas was being given to the new fertilizer plant although at a
curtailed rate until Asad Omar was CEO . Since the day Asad Omar left Engro,they have not been given gas for even one day.

The gas was given to Engro after international competitive bidding.
The only project in Pakistan's history for which this was done. The
Sind high court has not only ruled in favour of Engro in this case but has also issued a contempt notice against the federal govt.

Man how do you come across all this information, are they being fed directly to your by telepathy or do you have some actual sources on these figures.

I did attached the financial reports for some reason, I know they are hard to read, boring as hell and hard to understand especially when you have an IQ of a crying baby. But still they were meant to be read and now I am feeling sorry for posting them here.

 

[zhohaq]

Man how do you come across all this information, are they being fed directly to your by telepathy or do you have some actual sources on these figures.

I did attached the financial reports for some reason, I know they are hard to read, boring as hell and hard to understand especially when you have an IQ of a crying baby. But still they were meant to be read and now I am feeling sorry for posting them here.

Engro Fertilizer is going at a loss simply because the govt has cut of gas.
Then it decided to import fertilizer which it re-exports.
Doenst make sense unless you consider commission made in the Fertilizer Scam.
http://dawn.com/2011/12/16/four-urea-plants-face-closure/

You cant make fertilizer without gas. This is a violation of its contractual agreement of SNGPL.
Engro is paying the price for not buying off some politicions.
The next govt will have to follow the rule. The plant can scale up production immediately.

When the plant was set up Gas was cheap and massive profits were being made in fertiliser it was a sound decision. Take Fauji fertiliser which gets uninterrupted gas supply from SSGPL it has made record profits.
Infact the profits mirror the exact losses from Engro and others.


Lets say your bosses,Steel mill electricity are cut for not paying dues to LESCO since last 18 yr.
Your Boss will make a loss as you cant make steel without running the electrical furnaces.
Simple concept to understand.


Engro overall will survive. Its investments (both on fertilizer and Thar coal) will pay off.
If you read the reports for the entire Engro Corp its other businesses (Food,PVC etc) are doing well.
Infact if you had taken the time to look at the latest figure Engro is already back into profitability despite the haemorhaging Fertilizer unit.

Here are the figure for the entire company.
Focus on its Loss making unit is myopic. Its like focusing on the loss of hair(again) on your Bosses head.
Rest of his empire is doing well other wise. Hence his investments in Patwaris like ur self.
BTW do any of hus buisnesse even have financial statement, or any sort of documentation?
http://dawn.com/2013/02/16/engro-profit-tumbles/

---

KARACHI, Feb 15: Engro Corporation announced profit after tax (PAT) at Rs1.3 billion for the year 2012, representing earning per share (eps) at Rs2.61. The earnings were 83 per cent lower than earlier year’s PAT at Rs8.1billion and eps at Rs15.77.
The Board, which announced the results on Friday, did not declare a payout and none was expected by the market. The price of Engro stock fell by 84 paisa to Rs94.44 on Friday, with trading seen in 12 million shares.
On account of adverse operational environment faced by the company’s flag ship, the urea business continued to negatively affect company’s bottom-line, analysts at stock brokerage Topline Securities commented.
However, loss of Rs5.70 per share from Engro fertiliser was partially offset by Rs4.5 per share earnings contributed by the key subsidiary, Engro Foods.
Engro Corporation’s revenue grew by 9 per cent over the earlier year to Rs125.2bn in 2012, mainly driven by 35 per cent growth in sales of Engro Foods, which accounted for almost a third of the conglomerate’s sales in CY12, compared to 26 percent
revenue contribution the previous year.
[HI]The decline in urea sales was on account of non-availability of gas from Sui Northern Gas pipelines and supply influx of subsidized imported urea.
[/HI][HI]Analysts at BMA Capital Management affirmed that the Engro Corporation results were above expectations, primarily because the company booked a one time gain on reversal of liability on disposal of discontinued operations, amounting to Rs252 million.
[/HI]The major reason for steep decline in Engro Corporation earnings was attributed to 28 per cent increase in finance costs to Rs15.8bn, 68 per cent of which were attributable to Engro Fertiliser.
The fertiliser subsidiary could not operate its new highly leveraged plant for over eight months in CY12, which led to its operating earnings falling drastically short of financial charges.
[HI]The fourth quarter (4QCY12) marked a turnaround in the company’s profitability where Engro Corporation earned Rs1.8 billion, swinging the bottom-line back into profitability from a loss of Rs443 million in the nine months of CY12.
[/HI]

 

[amir_ali]

Whatever you gave here is already discussed in the article, also see the going concern note in the financial statement of 2012. It was a quite balanced article, it is not fair, you people should read the full article before commenting on it.
Also I think that you people have ignored the relevance of the date this article was published on, Asad Umar was a no political entity back then, so its not that any one was trying to character assassinate him back then.

Engro Fertilizer is going at a loss simply because the govt has cut of gas.
Then it decided to import fertilizer which it re-exports.
Doenst make sense unless you consider commission made in the Fertilizer Scam.
http://dawn.com/2011/12/16/four-urea-plants-face-closure/

You cant make fertilizer without gas. This is a violation of its contractual agreement of SNGPL.
Engro is paying the price for not buying off some politicions.
The next govt will have to follow the rule. The plant can scale up production immediately.

When the plant was set up Gas was cheap and massive profits were being made in fertiliser it was a sound decision. Take Fauji fertiliser which gets uninterrupted gas supply from SSGPL it has made record profits.
Infact the profits mirror the exact losses from Engro and others.


Lets say your bosses,Steel mill electricity are cut for not paying dues to LESCO since last 18 yr.
Your Boss will make a loss as you cant make steel without running the electrical furnaces.
Simple concept to understand.


Engro overall will survive. Its investments (both on fertilizer and Thar coal) will pay off.
If you read the reports for the entire Engro Corp its other businesses (Food,PVC etc) are doing well.
Infact if you had taken the time to look at the latest figure Engro is already back into profitability despite the haemorhaging Fertilizer unit.

Here are the figure for the entire company.
Focus on its Loss making unit is myopic. Its like focusing on the loss of hair(again) on your Bosses head.
Rest of his empire is doing well other wise. Hence his investments in Patwaris like ur self.
BTW do any of hus buisnesse even have financial statement, or any sort of documentation?
http://dawn.com/2013/02/16/engro-profit-tumbles/

---

KARACHI, Feb 15: Engro Corporation announced profit after tax (PAT) at Rs1.3 billion for the year 2012, representing earning per share (eps) at Rs2.61. The earnings were 83 per cent lower than earlier year’s PAT at Rs8.1billion and eps at Rs15.77.
The Board, which announced the results on Friday, did not declare a payout and none was expected by the market. The price of Engro stock fell by 84 paisa to Rs94.44 on Friday, with trading seen in 12 million shares.
On account of adverse operational environment faced by the company’s flag ship, the urea business continued to negatively affect company’s bottom-line, analysts at stock brokerage Topline Securities commented.
However, loss of Rs5.70 per share from Engro fertiliser was partially offset by Rs4.5 per share earnings contributed by the key subsidiary, Engro Foods.
Engro Corporation’s revenue grew by 9 per cent over the earlier year to Rs125.2bn in 2012, mainly driven by 35 per cent growth in sales of Engro Foods, which accounted for almost a third of the conglomerate’s sales in CY12, compared to 26 percent
revenue contribution the previous year.
[HI]The decline in urea sales was on account of non-availability of gas from Sui Northern Gas pipelines and supply influx of subsidized imported urea.
[/HI][HI]Analysts at BMA Capital Management affirmed that the Engro Corporation results were above expectations, primarily because the company booked a one time gain on reversal of liability on disposal of discontinued operations, amounting to Rs252 million.
[/HI]The major reason for steep decline in Engro Corporation earnings was attributed to 28 per cent increase in finance costs to Rs15.8bn, 68 per cent of which were attributable to Engro Fertiliser.
The fertiliser subsidiary could not operate its new highly leveraged plant for over eight months in CY12, which led to its operating earnings falling drastically short of financial charges.
[HI]The fourth quarter (4QCY12) marked a turnaround in the company’s profitability where Engro Corporation earned Rs1.8 billion, swinging the bottom-line back into profitability from a loss of Rs443 million in the nine months of CY12.
[/HI]