Engro Fertilizers : Transmission of Quarterly Report for the Nine Months Ended September 30, 2023

company

information

board of directors

Chairman & Non-Executive Director

Mr. Ghias Khan

Non-Executive Director

Mr. Javed Akbar

Mr. Ismail Mahmud

Independent Director

Mr. Asad Said Jafar

Mr. Asim Murtaza Khan

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Mr. Ahsan Zafar Syed

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Mr. Ali Rathore

Company Secretary

Mr. Sunaib Barkat

Dr. Shamshad Akhter

Mr. Khawaja Bilal Hussain

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August 23, 2023 and September 24, 2023 respectively

banking partners

Conventional Banks Allied Bank Limited Askari Bank Limited Bank Al Habib Limited Bank Alfalah Limited Citi Bank N.A

Deutche Investitions und Entwicklungsgesellschaft (DEG) Faysal Bank Limited

Habib Bank Limited

Habib Metropolitan Bank Limited JS Bank Limited

MCB Bank Limited National Bank of Pakistan Samba Bank Limited Soneri Bank Limited

Standard Chartered Bank (Pakistan) Limited Summit Bank Limited

The Bank of Punjab

United Bank Limited

Industrial and Commercial Bank of China

Shariah Compliant Banks

BankIslami Pakistan Limited

Al Baraka Islamic Bank (Pakistan) Limited

Dubai Islamic Bank (Pakistan) Limited

Meezan Bank Limited

MCB Islamic Bank Limited

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auditors

A.F. Ferguson & Co Chartered Accountants State Life Building No. 1-C, I.I. Chundrigar Road Karachi-74000, Pakistan

Tel: [phone] Fax [phone]

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7th & 8th Floor, The Harbor Front Building, HC # 3, Marine Drive, Block 4, Clifton, Karachi-75600, Pakistan Tel: [phone], PABX: [phone], Fax: [phone]

Website: www.engrofertilizers.com www.engro.com

plant sites

Daharki

Daharki, District Ghotki Sindh

PABX: [phone] - 10

Fax: [phone] - 9

Zarkhez

EZ-1P-I-II Eastern Industrial Zone Port Qasim,

Karachi

PABX: 021-34740044-49

Fax: [phone]

share registrar

M/s. FAMCO Associates (Pvt) Limited

8-F, Near Hotel Faran, Block-6, PECHS,

Shahrah-e-Faisal, Karachi, Pakistan

Tel: [phone]

Fax: [phone]

speak-out

Whistleblower Hotline

For complaints or concerns in

relation to business ethics and Compliance Engro Fertilizers Limited

Ph: [phone]

Email: [e-mail]

P.O.Box: 3851, Clifton, Karachi

Third Quarter 2023 accounts |

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directors' report

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directors' report to the shareholders

for the nine months ended september 30, 2023

On behalf of the Board of Directors of Engro Fertilizers Limited (referred to as the Company/Engro Fertilizers/ ,-,9;^LHYLKLSPNO[LK[VWYLZLU[[OLUHKP[LKJVUKLUZLKPU[LYPTÄUHUJPHSZ[H[LTLU[ZJVUZVSPKH[LKHUK unconsolidated) for the nine months ended September 30, 2023.

CSR Initiatives

The Company acknowledges its responsibility to support the communities it operates in and enhance the well- being of the residents. Here are the major updates on community uplift initiatives for 9M 2023:

• Education: During Q3, around 50 students were admitted to Nursery class at Sahara school. Additional classrooms have also been added at the adopted Noor Hassan Shah Girls School. EFERT GTEs also visited Daharki govt. schools and their vicinities. Further, they also conducted a career counseling session with senior classes. Last quarter, a new block was inaugurated at Sahara School, increasing its capacity by 100 students.
• Healthcare: The Company treated 4,924 snake bite and 1,255 dog bite patients at its facilities. Moreover, 369 lower limbs patients were also treated at our limb's facility till end of 9M 2023.
• Community Engagements: EFERT ensured continued operations of it's solar RO plants, during hot summer at Daharki and CAER villages, providing clean water. A CSR session has been conducted at our Daharki plant with junior management and GTEs to provide them with an overview of CSR activities done so far. This session has motivated them to volunteer for upcoming CSR activities.
• Environment: The Company carried out tree plantation drives in Govt Schools at Daharki and vicinity including Katcha area, and 1,000+ trees have been planted with teachers and students. The Company also carried out tree plantation drives, "Each One - Plant One" and "Hara Rang Dharti Ka" in which more than 5,000 trees have been planted across Pakistan so far this year. In the previous quarters as well, the Company carried out "Clean and Green Environment" tree plantation drive under which 18,000 trees were planted at Bahawalpur border in collaboration with the Pakistan Army.
• Agriculture Value Chain:,UNYV-LY[PSPaLYZJVU[PULK^VYRPUNVU[OL:LLK7YPÄJH[PVU*OPSP=HSL
  Chain Improvement Project in partnership with United States Department of Agriculture (USDA). The project aims to improve the livelihood of chili farmers in Sindh.
• Biodiversity Conservation: A 5-year partnership was signed with WWF-Pakistan to protect the blind
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Market Overview

On the agriculture front domestically, following the momentum built over previous years, farm economics continued to improve driven by better farm output prices and improved support prices.

In terms of global pricing, urea has experienced volatile movement throughout 2023, reaching USD 369 per ton (landed equivalent to PKR 5,339 per bag) by the end of 9M 2023, compared to USD 260 per ton (equivalent to PKR 3,706 per bag) at the end of 1H 2023. The fertilizer industry has ensured that local farmers continue to ILULÄ[MYVTSV^WYPJLZVMKVTLZ[PJHSS`WYVKJLKYLH(ZVM:LW[LTILY,UNYVYLHWYPJLZZ[VVKH[ 729WLYIHNVќLYPUNHKPZJVU[VMHWWYV_PTH[LS`JVTWHYLK[VPU[LYUH[PVUHSWYPJLZ

<>KLTHUKYLJVYKLKHUPUJYLHZLVMPU 4HUKZ[VVKH[ 2;]Z 2;PU 4;OL industry demand was wholly met through domestic production without any need for imports during 9M 2023.

Third Quarter 2023 accounts |

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DAP international prices also rebounded during Q3, due to limited stocks globally coupled with rising crop prices, and stood at USD 603/ton by the end of period compared to USD 480/ton at the start. Due to rising international prices, local market prices also rallied as the industry took multiple price increase during the period. Engro DAP MRP price stood at PKR 12,110/bag by the end of Q3 2023.

Key Developments

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Company's Operating Performance

The Company's urea production stood at 1,715 KT in 9M 2023 as compared to 1,568 KT in 9M 2022. Sales during the period stood at 1,726 KT vs 1,522 KT during the same period last year.

The Company's phosphates (DAP, Zorawar & NP) sales during 9M 2023 stood at 216 KT vs 212 KT during the same period last year.

The consolidated Revenue of the Company stood at PKR 148.5 Bn in 9M 2023 as compared to PKR 110.9 Bn PU[OLZHTLWLYPVKSHZ[`LHY;OLJVUZVSPKH[LK.YVZZ7YVÄ[VM[OL*VTWHU`^HZYLJVYKLKH[729)UMVY 9M 2023 as compared to PKR 32.3 Bn in the same period last year.

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The Board is pleased to announce an interim cash dividend of PKR 6 per share for the year ending December 31, 2023.

Near Term Outlook

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The Company remains resolute in its commitment to contribute to the transformation of Pakistan's agricultural landscape. On behalf of the Board, we extend our appreciation to all stakeholders for their continued trust and support.

Ahsan Zafar Syed	Ghias Khan
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Third Quarter 2023 accounts |

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Third Quarter 2023 accounts |

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for the nine months ended september 30, 2023

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