Karachi: Engro Polymer and Chemicals Limited has released its unaudited consolidated financial statements for the quarter ending September 30, 2024. The document outlines a challenging economic landscape marked by bearish global polyvinyl chloride (PVC) prices and subdued chemical markets. According to information available from the Pakistan Stock Exchange (PSX), the company has navigated a difficult period marked by reduced demand and supply disruptions.

Engro Polymer and Chemicals recorded a significant downturn in financial performance over the nine months ending in September 2024, with revenues reaching Rs. 54.45 billion, a decrease of approximately 12% compared to the same period last year. This decline was attributed to falling global PVC prices and lower sales volumes. Consequently, the company reported an after-tax loss of Rs. 2.29 billion, resulting in a loss per share of Rs. 2.74, a stark contrast to the profit of Rs. 5.39 billion and earnings per share of Rs. 5.43 reported in the prior year.

The company detailed various market dynamics influencing its operations. PVC demand remained low, particularly impacted by monsoon seasons in India and China and ongoing global economic challenges. Ethylene prices saw fluctuations, peaking at USD 1,000 per ton in August before falling back to USD 950 per ton in September due to market adjustments post-maintenance shutdowns. Additionally, markets for Ethylene Dichloride (EDC) and Vinyl Chloride Monomer (VCM) experienced subdued demand and stagnant growth, respectively.

Engro Polymer also highlighted the adverse impact of high energy costs on the domestic textile sector, which further strained demand for chemical products. Despite these challenges, the company continues to invest in efficiency projects, including a Hydrogen Peroxide plant, aiming to bolster its operational resilience.

Looking ahead, Engro Polymer anticipates a stable to slightly bearish outlook for PVC prices, influenced by oversupply and weak global demand. The company remains focused on completing its strategic projects within scheduled timelines and adapting to the evolving economic conditions to ensure sustainable operations.