Engro Corporation’s standalone revenue increased from PKR8.6b in 1H 2021 to PKR16.6b in 1H 2022, exhibiting a substantial growth of 92pc. Higher revenue was primarily due to higher dividends received from Engro Polymer & Chemicals Limited (EPCL) and Engro Fertilizers Limited (EFERT) which, in turn, were driven by strong underlying business performance. Resultantly, the Company achieved a 29pc higher PAT of PKR12.5b in 1H 2022 against PKR9.7b in 1H 2021, translating into an EPS of PKR21.66 per share (2021: PKR16.81 per share). On a consolidated basis, Engro Corporation’s revenue grew by 27pc to PKR177.5b in 1H 2022 from PKR139.3b in 1H 2021. The Company posted a PAT of PKR16.8b in 1H 2022, which is 42pc lower than PKR29.1b in 1H 2021. The PAT attributable to the shareholders is PKR7.4b, translating into an EPS of PKR12.87 per share (1H 2021: PKR29.60 per share). Despite organic revenue growth, imposition of super tax on current and prior year earnings weighed on the conglomerate’s consolidated profitability. Engro Corporation announced an interim cash dividend of PKR11/- per share for the year. This is in addition to the PKR12/- per share dividend that has already been announced during the year, bringing the cumulative payout to PKR23/- per share. Portfolio Performance Review Fertilizers: The domestic urea market exhibited growth of ~12pc in 1H 2022. EFERT sales remained steady during the year touching 1,098 KT versus 1,167 KT during same period last year. By enabling indigenous production of urea, EFERT contributed ~USD 0.8b in import substitution for Pakistan, and sold urea at a discount of ~78pc over international prices. Profitability of the business was impacted by super tax imposition to the tune of PKR5.2b. EFERT posted a PAT of PKR5.4b in 1H 2022 vs PKR10.5b in 1H 2021. Petrochemicals: The petrochemical business continued its upward momentum and EPCL sales increased to 120 KT in 1H 2022 against 96 KT in 1H 2021. Timely expansion and operational reliability supported Pakistan in avoiding USD 72m incremental outflow in the form of import substitution. EPCL recorded sales of PKR45.4b in 1H 2022 compared to PKR30.5b in 1H 2021. The 49pc increase is attributable to higher international pricing and capacity enhancement on the PVC front. EPCL reported a PAT of Rs. 7.1b in 1H 2022 against PKR7.3b in 1H 2021, despite the super tax impact of PKR2b. Telecommunication Infrastructure: Expansion continued for the telecommunication infrastructure vertical at Engro, with Engro Enfrashare growing its national tower-print to 2,937 sites by the end of 1H, servicing all of Pakistan’s mobile network providers. This drove revenue growth of Engro Enfrashare by 86pc in 1H 2022 in comparison to the same period last year. Engro Enfrashare is well-positioned to enable the colocation model while enhancing services to all its customers, as reflected in the 179pc hike in colocation tenants versus last year. Engro Enfrashare is on track to capture future sectoral growth with its high value-add proposition complemented by economies of scale. Foods & Rice: Engro Eximp Agriproducts continued its excellence in the rice export business, recording 62pc growth in volumes versus the same period last year (33.4 KT versus 20.7 KT). During the half year, the rice business generated a revenue of USD 21m through exports versus USD 12m in 1H 2021, represented by the export of 25.6 KT in 1H 2022 versus 14.1 KT in the comparative period. The business continued expanding its footprint in the local market and increased domestic volumes by 20pc to 7.8 KT against 6.5 KT in the same period last year. The results of FrieslandCampina Engro Pakistan Ltd are yet to be announced. Energy & Power: Mining operations continued smoothly and the Mine supplied 1.4m tons of coal to Engro Powergen Thar during the period. Phase II expansion of the Mine to 7.6m tons per annum is on track and expected to be completed during Q4 of 2022. Engro Powergen: Thar Limited achieved a collection of 88pc from inception to date, bringing it at par with other coal IPPs. During the first half, the Plant achieved 58pc availability, dispatching 1,503 GWh to the national grid. Plant availability remained low due to outage following an incident on the coal conveyor belt. After detailed inspection and necessary rehabilitation work, both units of the plant successfully came online and have been demonstrating ~100pc operational rate. Due to a shutdown for scheduled major inspection, the EPQL Plant dispatched a Net Electrical Output of 331 GWh to the national grid against 394 GWh in the same period last year. The business posted a PAT of PKR406m for the current period as compared to PKR905m for 1H 2022, primarily on account of lower Period Weighting Factor (PWF) applicable during the period and lower finance income; the impact of PWF will be offset in the next six months. Terminals: Engro Elengy Terminal enabled ~13pc of the total gas supply to Pakistan. It handled 37 cargoes, delivering 110 bcf re-gasified LNG into the SSGC network. Engro Vopak Terminal had an actual throughput of 720 KT against 638 KT during the same period last year. The increase was primarily observed in chemical volumes offset by lower LPG handling.