Engro Chemical Pakistan Limited

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Engro Chemical Pakistan Limited

• Full Year 2005 Results

Security Analysts Briefing
February 3, 2006
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Urea Market Environment

• Full Year 2005 industry sales were 10 higher
  versus Full Year 2004 at 5.2 million tons versus
  4.7 million tons
• 561k tons imported to meet shortfall
• Local production up by 6 versus FY2004 at 4.7
  million tons
• Imported urea cost was approximately 266/ton vs.
  224/ton in 2004. TCP imported at a weight
  average of 280/ton
• Import parity price for 2005 was Rs. 27 higher
  than the prevailing domestic prices per bag
• Government subsidized imports and local industry
  continued to sell at well below international
  prices
• No urea exports in 2005 versus 12kT in 2004

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Urea Industry Supply and Demand
Net of transfers and adjustments
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Phosphates Market Environment

• Industry sales increased by 13 versus Full Year
  2004 (1,500 kT versus 1,330 kT)
• Industry import of phosphates 1,347 kT versus
  1,008 kT in 2004
• Industry DAP and MAP prices averaged 297 vs.
  267/ton in 2004
• Closing inventory at 405 kT versus 106 kT in 2004
• Current prices at approx. 280 per ton

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Engro Operating Highlights
Includes 112kT and 37kT of Govt. imported urea
in 2005 and 2004 respectively
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Engro Financial Highlights

• Higher sales in all fertilizer categories
• Dividends from associates
• -
• Higher gas prices
• Inflationary pressure

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Joint Venture Highlights

• Engro Vopak
• Profit after tax of Rs 438 million in 2005 versus
  Rs 384 million in 2004
• The company paid total dividend of 60, Rs 270m
• Engro Asahi
• Profit after tax of Rs 305 million in 2005 versus
  Rs 365 million last year
• Lower profit due to lower PVC-VCM margins
• Production was 91 kT versus 87 kT in 2004
• Domestic sales volume at 72 Kt versus 66 kT in
  2004
• The company paid dividends of Rs. 134 million
• Engro Foods
• Project progressing as per plan. Commercial
  production is expected to start in the current
  quarter

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New Projects

• Completed due diligence activities as part of the
  preparation to bid for the privatisation of JPC
• Private Power and Infrastructure Board (PPIB)
  issued a Letter of Interest to ECPL to set up a
  150-225 MW power plant. Feasibility underway,
  expected LOS in 2nd Half 2006
• Pursuing the Government for allocation of
  100MSCFD of gas from Qadirpur gas field to Engro
  for setting up world scale urea plant

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