Karachi: Engro Polymer & Chemicals Limited has released its unaudited financial report for the half-year ending June 30, 2026, showing a mixed performance across its product segments amid global market fluctuations. The report, dated August 28, 2026, details the company's strategic maneuvers in coping with geopolitical tensions and market volatility.
The global polyvinyl chloride (PVC) market experienced a firm stance throughout the second quarter, with price increases observed in April and May. This was largely influenced by the ongoing US-Iran conflict, which exerted pressure on freight, energy, and feedstock availability. However, as conflict-related disruptions began to ease in May, a moderate correction in PVC prices was noted by June. Ethylene prices remained elevated for most of the quarter due to continued naphtha shortages, before declining to 478,544T by June as naphtha feedstock costs reduced to lower levels. The ethylene dichloride (EDC) market remained tight due to constrained imports and renewed force majeure declarations, keeping costs high for vinyl chloride monomer (VCM) and PVC producers.
Domestic PVC sales declined in the second quarter due to staggered imports landing at lower prices, which, combined with a consistent downward trend in PVC prices, led buyers to defer purchases. According to information available from the Pakistan Stock Exchange (PSX), domestic volumes improved in June as buyers re-entered the market.
The global caustic soda market, affected by conflict-related chlor-vinyl plant shutdowns, remained firm in early Q2 before easing as regional operating rates normalized. Demand remained stable across key sectors like alumina and pulp & paper. Locally, the textile sector's resilience supported demand, maintaining stable volumes.
A significant reduction in the applicable captive gas levy, from Rs. 1,406/MMBtu in January to Rs. 365/MMBtu in May, provided cost relief, particularly for the chlor-alkali business. This followed a revision in the underlying levy formula, offering respite after energy costs rose in the previous quarter.
The hydrogen peroxide market saw gradual recovery during the quarter, following an escalation in the conflict. Import prices climbed over $400/ton before easing by the quarter's end, yet remained above pre-war levels. Domestically, anti-dumping duties on imports from several countries were extended for five more years.
During the period, Engro Polymer & Chemicals Limited recorded a revenue of Rs. 39 billion, marking a 4% increase compared to the same period last year. This growth was attributed to higher prices and sales volume. The company reported a Profit After Tax of Rs. 1.6 billion, supported by higher PVC margins and reduced energy costs. Earnings Per Share stood at Rs. 1.79, a significant improvement from a Loss Per Share of Rs. (3.55) in the same period last year.