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.
Esta historia es de la edición March 9 - 22, 2020 de Profit.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición March 9 - 22, 2020 de Profit.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
Transitioning to EV is the way to go - If we'll do it is another question entirely
Pakistan has been proactive in forming an EV policy and has gotten much acclaim for it. But does the government have plans beyond just saving the environment, and will they be able to pull it off?
Where the women at?
On KLF manels, and why financial inclusion for women matters Think of this as the Profit female reporters’ manifesto on calling out corporate fluff
Turnaround at AkzoNobel Pakistan in the making?
After three years of tepid revenue and profit growth, the global paints giant's Pakistani subsidiary is beginning to see significantly increased profitability
SIALKOT IS PREPARING FOR take-off
As more Pakistanis are able to afford to fly, Air Sial's founders hope to make their home city one of the major hubs of aviation in the country
Despite growing competition, Adamjee Insurance remains the dominant player
How Pakistan’s oldest company has managed to retains its market share even as newer companies continue to lure customers
As Thar power plants come online, Engro's profits soar
The conglomerate’s net income is up 30% in 2019, investments continue in telecom infrastructure sharing and petrochemicals business
