Engro Holdings reported a consolidated PAT of PKR 107bn (Owner’s share: PKR 56bn); EPS PKR 46.20 vs 26.78 last year. However, much of this increase is due to a one-off impairment reversal on thermal assets. Excluding this, Owner’s PAT is PKR 29bn – a fairer view of business performance.
On a standalone basis, PAT is PKR 253mn vs PKR 9.9bn last year (EPS PKR 0.21 vs 20.48). The drop is due to the transfer of income-generating investments to DH Partners under the Scheme of Arrangement, and reduced dividends from Engro Corp (which is retaining cash for the towers acquisition).
The financial results for the period continued to reflect the accounting impacts of three key events: the creation of Engro Holdings, the termination of SPAs related to thermal energy assets, and the consolidation of Deodar Towers. Shareholders are advised that movements in reported EPS and PAT largely stem from structural changes and a one-time impairment reversal, rather than any shift in the underlying strength of the businesses.
Dividend Update – The Board has not declared a final dividend, prioritizing funding for the towers’ transaction. This is among Engro’s most important investments, expected to deliver resilient cashflows and create long-term shareholder value.
