There are no two ways about it: Engro had a great year in 2019. Revenue was up 32%, which is no mean feat for one of Pakistan’s largest conglomerates, and profits were up 30%. While the company has eight active business lines, it was abundantly clear that the star for this year was the energy subsidiary, driven by massive increases in both revenue and profitability as the coal-fired power plants in Thar came online.
Consolidated revenue grew by 32%, from Rs171.6 billion to Rs225.9 billion over the course of 2019. The single biggest component of that increase was Engro Energy, where revenue grew from Rs12.0 billion in 2018 to Rs50.0 billion in 2019, an over 4-times increase. The next biggest increase came in the food / rice export business, which grew by 22%. Every other business line grew either in single digits or else below inflation levels.
In the energy sector, Engro’s big stars were its energy investments in Sindh, both its coal mining operations as well as its coal-fired power generation units.
The Sindh Engro Coal Mining Company (SECMC) – a joint venture with the government of Sindh – is scheduled to be able to produce 3.8 million tons of coal per year within its first year. Engro Powergen Thar Ltd operates a 660-megawatt coal-fired mine-mouth power generation unit in Thar. Both projects achieved commercial operations on July 10, 2019. In 2019, the company was able to produce 2.3 million tons of coal from its mine.
This story is from the March 9 - 22, 2020 edition of Profit.
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This story is from the March 9 - 22, 2020 edition of Profit.
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