ENGRO: POST-BoD ANALYSIS

BOARD MEETING:
The Board of Directors (BoD) of Engro Chemicals Limited (Engro) was scheduled for Saturday 20 Jan. 2007 to approve the 2006 full-year results. However the results were announced on 22 Jan. 2007 at 10:00 am. Circumspect though it may seem, bear with me.

2005 DISCLOSURES:Profit after Tax (PAT): Rs. 2, 320 million
Earnings per Share (EPS): Rs. 13.79
Payout: Total cash dividend of Rs. 6

2006 EXPECTATIONS:
PAT: Rs. 2, 350 million, with expected growth of 1%
EPS: Rs. 13.94
Payout: Rs. 4 to 5

Engro announces cash dividend

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.