Karachi: Engro Polymer & Chemicals Limited has reported a notable increase in revenue for the nine months ending September 30, 2026, as detailed in its unaudited consolidated interim financial statements. The company recorded revenue of Rs. 65 billion, marking a 13% increase from the previous year, primarily driven by higher polyvinyl chloride (PVC) prices and volumes, along with increased hydrogen peroxide (HPO) revenue.
During the third quarter of 2026, Engro Polymer & Chemicals achieved record domestic PVC sales, attributed to resilient local demand and strategic trade protection measures. Following the company's appeal, provisional anti-dumping duties were implemented in late July on PVC imports from the United States and Indonesia. This move effectively reduced import inflows, bolstering the company's standing in the domestic market.
Globally, the PVC market faced challenges, impacted by subdued construction activity, seasonal monsoons in South and Southeast Asia, and substantial Chinese exports. Consequently, regional PVC prices hit a low point in July but recovered to $875 per metric ton by September. The recovery was driven by increased feedstock costs rather than a resurgence in demand. Ethylene prices rose due to production cuts and geopolitical tensions in the Middle East, while Ethylene Dichloride (EDC) prices climbed to $335 per metric ton as regional chlor-alkali producers reduced operating rates. These factors contributed to thin PVC margins across the region, prompting output reductions, particularly among Chinese producers.
In the caustic soda sector, local demand remained steady, supported by continuous uptake from the textile industry. The company experienced some relief from energy cost pressures following a revision in the captive gas levy formula in March. However, the global caustic soda market remained weak, with soft Asian demand outside the alumina sector driving regional prices lower. Northeast Asian producers, excluding China, reduced operating rates to around 70%, exacerbating the squeeze on integrated chlor-vinyl margins due to rising ethylene and power costs.
The hydrogen peroxide market in Bangladesh encountered renewed pressure during the quarter. A gas supply crisis curtailed local production and exports, resulting in higher costs and prices. By the end of the quarter, import prices exceeded $420 per ton, fostering a stronger local pricing environment. The company remains focused on market development and is actively engaging with stakeholders on regulatory matters to ensure fair competition.
Engro Polymer & Chemicals reported a Profit After Tax of Rs. 0.3 billion, benefitting from improved product margins and a remeasurement gain on SIDC of Rs. 1.3 billion. This translates to Earnings Per Share of Rs. 0.35, a significant turnaround from a Loss Per Share of Rs. (3.80) in the same period last year. According to information available from the Pakistan Stock Exchange (PSX), these results underscore the company's ability to navigate challenging global market conditions while capitalizing on domestic opportunities.