Engro announces cash dividend

Posted on 01.23.07 by StockPK Team @ 3:15 pm    

Engro Chemical Pakistan has announced, on Monday, a final cash dividend at Rs3 per share (i.e. 30 per cent) for the year ending on December 31, 2006. It was in addition to the already paid interim dividend at Rs6 per share (i.e. 60 per cent).

Therefore, the cash dividend of the entire year totaled to Rs9 per share (i.e. 90 per cent). The profit after tax of Engro Pakistan stood at Rs2.55 billion which is a new record for the company and is higher by 10 per cent over the year 2005 profit of Rs2.32 billion. The higher profit was principally due to higher urea volumes because of better production and capital gain of Rs131 million on sale of land to Engro Asahi, said a press statement.

Engro Urea production in 2006 of 969,000 tonnes, represented an increase of 6 per cent over 2005, was the best ever yearly production achieved. Engro Urea sales of 945,000 tonnes registered a 6 per cent increase over 2005 volume of 890,000 tonnes. Engro’s market share for the year in review remained at 19 per cent.

The year 2006 proved to be a challenging year for Zarkhez as its sales declined by 33 per cent to 77,000 tonnes against last yearís sales of 115,000 tonnes mainly due to the decline in acreage of important target crops and a change in strategy to focus more on value-added crops.

Engro’s overall phosphate sales volume was 388,000 tonnes which is the highest ever for this segment of business in any year. The share of phosphate market for 2006 was 23 per cent. The sales for the year were Rs17.6 billion, lower by 4 per cent, due to decline in Zarkhez sales. Subsidiaries and affiliates also performed well with record profits.

Source: The News