Engro Holdings’ Annual Results Reflect Structural Changes

Engro Holdings reported a consolidated PAT of PKR 107 billion, with an owner’s share of PKR 56 billion; EPS at PKR 46.20 compared to 26.78 from the previous year. Much of this increase is due to a one-off impairment reversal on thermal assets. Excluding this, the owner’s PAT is PKR 29 billion, reflecting a fairer view of business performance.

On a standalone basis, PAT is PKR 253 million, compared to PKR 9.9 billion in the previous year (EPS at PKR 0.21 vs 20.48). The drop is attributed to the transfer of income-generating investments to DH Partners under the Scheme of Arrangement and reduced dividends from Engro Corp. This company is retaining cash for the towers acquisition.

The financial results continue 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.

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.