Q2 2026 Engro Fertilizers Ltd Earnings Call

Speaker #1: Assalamualaikum, everyone. I hope I'm audible and you all can hear me. So, I think we've got major participants here, and I think it's 4 o'clock, so we should start.

[Company Representative] (Engro Fertilizers): Assalam, everyone. I hope I'm audible and you all can hear me. I think we've got major participants are here, and I think it's 4:00, we should start. Assalam, everyone, and thank you for joining the corporate briefing session for this H1 for Engro Fertilizers. As per the process, we have a couple of slides. I'll present those. Some discussion on the economy, on the market, and update on the numbers. Once the presentation is complete, we will open the floor for questions. As per past practice, you can also ask the questions on the chat, and my team will make sure that they respond to your questions also over chat. You've got both options. You can either ask the questions through chat or also ask online after the presentation is over.

Imran Ahmed: Assalam, everyone. I hope I'm audible and you all can hear me. I think we've got major participants are here, and I think it's 4:00PM, we should start. Assalam, everyone, and thank you for joining the corporate briefing session for this H1 for Engro Fertilizers. As per the process, we have a couple of slides. I'll present those. Some discussion on the economy, on the market, and update on the numbers. Once the presentation is complete, we will open the floor for questions. As per past practice, you can also ask the questions on the chat, and my team will make sure that they respond to your questions also over chat. You've got both options. You can either ask the questions through chat or also ask online after the presentation is over.

Speaker #1: So, Assalamualaikum everyone, and thank you for joining the corporate briefing session for the first half for Engro Fertilizers. As part of the process, we have a couple of slides—I'll present those.

Speaker #1: We will begin with some discussion on the economy, the market, and an update on the numbers. Once the presentation is complete, we will open the floor for questions.

Speaker #1: As per past practice, you can also ask questions on the chat, and my team will make sure they respond to your questions there as well.

Speaker #1: So you’ve got both options: you can either ask your questions through chat, or also ask online after the session— the presentation is over. But one request: whenever you pose a question, whether online or otherwise, please do introduce yourself first so that we know who you’re referring to.

[Company Representative] (Engro Fertilizers): One request, whenever you pose a question online or whatever, please do introduce yourself first so that we know who we're referring to. Starting off with our presentation. Important disclaimer, I think we all understand this. I can move forward. The agenda is, again three areas. We'll talk about business highlights, we talk about business performance, and then the contributions and challenges as we see for us and the industry. I think a brief snapshot of the macroeconomic overview, and I'm sure we all are aware of this, but I think just to sort of bring perspective in terms of the fertilizer industry. If you look at the global landscape, I think the past H1 has been a rollercoaster in terms of challenges globally, primarily because of the war, which we saw, and the ups and downs because of the war.

Imran Ahmed: One request, whenever you pose a question online or whatever, please do introduce yourself first so that we know who we're referring to. Starting off with our presentation. Important disclaimer, I think we all understand this. I can move forward. The agenda is, again three areas. We'll talk about business highlights, we talk about business performance, and then the contributions and challenges as we see for us and the industry. I think a brief snapshot of the macroeconomic overview, and I'm sure we all are aware of this, but I think just to sort of bring perspective in terms of the fertilizer industry. If you look at the global landscape, I think the past H1 has been a rollercoaster in terms of challenges globally, primarily because of the war, which we saw, and the ups and downs because of the war.

Speaker #1: So, starting off with our presentation—an important disclaimer: I think we all understand this, so I can move forward. The agenda is, again, three areas. We'll talk about business highlights, we'll talk about business performance, and then the contributions and challenges as we see them for us and the industry.

Speaker #1: I think a brief snapshot of the macroeconomic overview—and I'm sure we all are aware of this—but I think, just to sort of bring perspective in terms of the fertilizer industry.

Speaker #1: So if you look at the global landscape, I think the past first half has been a roller coaster in terms of challenges globally, primarily because of the war, which we— which we— which was— which we saw, and the ups and downs because of the war.

Speaker #1: The challenges continue, as we speak, because the matter was escalated. Again, de-escalated, I think, yesterday and then—so it is, again, there's a yo-yo in that.

[Company Representative] (Engro Fertilizers): The challenges continue as we speak because the matter was escalated, again de-escalated, I think, yesterday. It is again, there's a yo-yo in that. Because of all those geopolitical challenges, and Strait being shut down for a considerable period of time, or rather being shut down intermittently. We have disruptions in terms of route. Crude, I think, peaked over $100 a barrel. Consequently, in Pakistan, we saw the increase in petrol and diesel prices, sharp increases also, and then sort of rationalizing over a period of time. Urea prices globally peaked to around $900, DAP over nine times 35, $950. Positively, I think the plus point has been that urea in Pakistan is not imported. I think as an industry, as Pakistan, we're insulated with the high urea prices globally. That did not impact us.

Imran Ahmed: The challenges continue as we speak because the matter was escalated, again de-escalated, I think, yesterday. It is again, there's a yo-yo in that. Because of all those geopolitical challenges, and Strait being shut down for a considerable period of time, or rather being shut down intermittently. We have disruptions in terms of route. Crude, I think, peaked over $100 a barrel. Consequently, in Pakistan, we saw the increase in petrol and diesel prices, sharp increases also, and then sort of rationalizing over a period of time. Urea prices globally peaked to around $900, DAP over 9 x 35, $950. Positively, I think the plus point has been that urea in Pakistan is not imported. I think as an industry, as Pakistan, we're insulated with the high urea prices globally. That did not impact us.

Speaker #1: But because of all those geopolitical challenges, and the Strait being shut down for a considerable period of time—or rather, being shut down intermittently—we have disruptions in terms of crude. I think crude peaked over $100 a barrel, and consequently, in Pakistan, we saw the increase in petrol and diesel prices—sharp increases also—and then sort of rationalizing over a period of time.

Speaker #1: Urea prices globally peaked at around $900, DAP at over nine times 35, about $950. Positively, I think the plus point has been that urea in Pakistan is not imported. So, I think as an industry, as Pakistan, we were insulated from the high urea prices globally, and that did not impact us.

Speaker #1: But yes, the DAP high prices did have an impact because, as you would understand, Pakistan—the total demand is fed around 50% by—just a second, please.

[Company Representative] (Engro Fertilizers): Yes, the DAP high prices did have an impact because as you would understand, in Pakistan, the total demand is fed around 50% by Just a second, please. Yeah, I'm sorry. Please give me just one minute. Yeah, I'm sorry about that. I think there was some challenge with the presentation being displayed. Apologies for that. Going back, I think I was talking about the urea. Urea in Pakistan, it does not get imported, I think. That tends to be the positive. Else, I think the landed cost would have been around PKR 17,000 to 18,000 agar urea import karte Pakistan mein at that point in time. I think as a nation, we were quite fortunate to have local production in place. DAP, on the other hand, around 50% is produced locally and the rest is imported.

Imran Ahmed: Yes, the DAP high prices did have an impact because as you would understand, in Pakistan, the total demand is fed around 50% by Just a second, please. Yeah, I'm sorry. Please give me just one minute. Yeah, I'm sorry about that. I think there was some challenge with the presentation being displayed. Apologies for that. Going back, I think I was talking about the urea. Urea in Pakistan, it does not get imported, I think. That tends to be the positive. Else, I think the landed cost would have been around PKR 17,000 to 18,000 agar urea import karte Pakistan mein at that point in time. I think as a nation, we were quite fortunate to have local production in place. DAP, on the other hand, around 50% is produced locally and the rest is imported.

Speaker #1: Yeah, I'm sorry. Please give me just one minute. Yes, I'm sorry about that. I think there was some challenge with the presentation being displayed.

Speaker #1: So, apologies for that. Going back, I think I was talking about urea. So, urea in Pakistan does not get imported, I think, so that would be a positive.

Speaker #1: Otherwise, I think the landed cost would have been around $17,000 to $18,000 for urea imported to Pakistan at that point in time. So, I think as a nation, we were quite fortunate to have local production in place.

Speaker #1: DAP, on the other hand, is around 50%, is produced locally, and the rest is imported. So yes, DAP has seen shocks in terms of prices, and also the raw material for DAP has also shot up globally, which has also caused a rise in DAP prices globally and also in Pakistan.

[Company Representative] (Engro Fertilizers): Yes, the DAP has seen shocks in terms of the prices and also the raw material for DAP also has shot up globally, which also has shown a rise in DAP prices globally and also in Pakistan. Similarly, sulfur also hit a record high. Commodity prices displayed sort of peaks and then sort of came down. DAP, as we speak, is still in that particular levels. Globally, there was a loss of access because of the war and there was certain shortages also, which again led to the price increase. If you look at Pakistan on the other side, I think inflation has been higher. In June, the policy rate, I think after three years, we saw a hike in the policy by 100 bips. I think, alhamdulillah, exchange rate has remained stable. That has not moved adversely.

Imran Ahmed: Yes, the DAP has seen shocks in terms of the prices and also the raw material for DAP also has shot up globally, which also has shown a rise in DAP prices globally and also in Pakistan. Similarly, sulfur also hit a record high. Commodity prices displayed sort of peaks and then sort of came down. DAP, as we speak, is still in that particular levels. Globally, there was a loss of access because of the war and there was certain shortages also, which again led to the price increase. If you look at Pakistan on the other side, I think inflation has been higher. In June, the policy rate, I think after three years, we saw a hike in the policy by 100 bips. I think, alhamdulillah, exchange rate has remained stable. That has not moved adversely.

Speaker #1: And similarly, sulfur also hit a record high. So, commodity prices displayed sort of peaks, and then sort of came down. DAP, as we speak, is still at that particular level.

Speaker #1: And globally, there were losses of access because of the war, and there were certain shortages also, which again led to the price increase. But if you look at Pakistan, on the other side, I think inflation has been higher in June.

Speaker #1: The policy rate—I think after three years, we saw a hike in the policy rate by 100 bps. I think, Alhamdulillah, the exchange rate has remained stable.

Speaker #1: That has not— that has not moved adversely. And the stock market has also shown it has— it has witnessed its share of ups and downs, but currently, at the second quarter, it was adversely 9,000 points.

[Company Representative] (Engro Fertilizers): The stock market has also shown. It has witnessed its share up and downs, but it's currently at a, say Q2, it was at 9,000 points. I think the real message here, I think as you see in the last line is domestic urea production was a critical buffer and insulating the farmers from all those price shocks. A little on the farm economics. The farm economics, you understand, wheat is a big contributor. Wheat has shown great progress, and people have seen prices of PKR 500 also as a support price. Open market prices, as we speak, have crossed over PKR 4,000. The returns in terms of farmers from the wheat remains positive.

Imran Ahmed: The stock market has also shown. It has witnessed its share up and downs, but it's currently at a, say Q2, it was at 9,000 points. I think the real message here, I think as you see in the last line is domestic urea production was a critical buffer and insulating the farmers from all those price shocks. A little on the farm economics. The farm economics, you understand, wheat is a big contributor. Wheat has shown great progress, and people have seen prices of PKR 500 also as a support price. Open market prices, as we speak, have crossed over PKR 4,000. The returns in terms of farmers from the wheat remains positive.

Speaker #1: So, I think the real message here—and I think you can see this in the last line—is that domestic urea production was a critical buffer, insulating the farmers from all those price shocks.

Speaker #1: So a little on the farmer economics. The farmer economics, you understand, wheat is a— is a big contributory. So wheat has— has shown— has shown great progress, and people have seen price advances on 500 rupees also, as a support price.

Speaker #1: Open market prices, as we speak, have crossed over 4,000 rupees. So the returns in terms of farmers from the wheat remain— remains positive. But having said that, DAP on the other side, because it has crossed on a landed basis, it has crossed over 1,670,000 rupees the DAP uptake from the farmer is low even though the farmer economics are quite— quite better.

[Company Representative] (Engro Fertilizers): Having said that, DAP on the other side, because on a landed basis, it has crossed over PKR 16,000 to 17,000, the DAP uptake from the farmer is low, even though the farmer economics are quite better. Plus on the other side, rice. I think rice has also shown improved prices, which should also help the farmer liquidity. On the farm economic side and the commodity side, I think it'd be safe to say that there's been good positivity for the farmers. There's been stable water supply. No major climatic disruptions. Again, having said that, there's always a fear of severe weather conditions. We've seen certain happening in the recent past also. Again, having said that, the water availability remains stable. Farmer input costs have increased, primarily because of the fuel escalations and primarily because of the war sentiment.

Imran Ahmed: Having said that, DAP on the other side, because on a landed basis, it has crossed over PKR 16,000 to 17,000, the DAP uptake from the farmer is low, even though the farmer economics are quite better. Plus on the other side, rice. I think rice has also shown improved prices, which should also help the farmer liquidity. On the farm economic side and the commodity side, I think it'd be safe to say that there's been good positivity for the farmers. There's been stable water supply. No major climatic disruptions. Again, having said that, there's always a fear of severe weather conditions. We've seen certain happening in the recent past also. Again, having said that, the water availability remains stable. Farmer input costs have increased, primarily because of the fuel escalations and primarily because of the war sentiment.

Speaker #1: Plus, on the other side, rice—I think rice has also shown improved prices—so we should also help the farmer liquidity. So on the farmer economic side and the commodity side, I think we're maybe safe to say that there's been good positivity for the farmers.

Speaker #1: There's been stable water supply, no major climatic disruptions. We— but again, having said that, we do fear—there's always a fear of severe weather conditions.

Speaker #1: We've seen certain happenings in the recent past also. But again, having said that, the water availability remains stable, and farmer input costs have increased.

Speaker #1: Primarily because of the fuel escalations and because of the—primarily because of the war sentiment. So, all in all, I think for the farmer economic side, from a sale price of commodities, I think they've done well.

[Company Representative] (Engro Fertilizers): All in all, I think from the farmer economic side, from the sale price of commodities, I think they have done well. Yes, the input costs have continued to raise pressure because of the global economic scenario. Moving quickly towards the urea business. If you look at the numbers of YTD sales of the industry have been around 2.5 million tons as against 2.35 last H2. The sales have been close to what we sold as industry last year. The market share of Engro is quite lower than last year. It is now at 21% as compared to 9% last year. If you look at the quarter, similar picture, we have a quite declined market share from 34% to 17%.

Imran Ahmed: All in all, I think from the farmer economic side, from the sale price of commodities, I think they have done well. Yes, the input costs have continued to raise pressure because of the global economic scenario. Moving quickly towards the urea business. If you look at the numbers of YTD sales of the industry have been around 2.5 million tons as against 2.35 last H2. The sales have been close to what we sold as industry last year. The market share of Engro is quite lower than last year. It is now at 21% as compared to 9% last year. If you look at the quarter, similar picture, we have a quite declined market share from 34% to 17%. If you look at the chart on the right, the total inventory, around 74% of the inventory is with Engro Fertilizers.

Speaker #1: But yes, the input costs have continued to be— continued to raise pressure because of the— of the global economic scenario. Moving quickly towards the urea business, if you look at the numbers, year-to-date sales of the industry have been around 2.5 million tons, as against 2.35 last year— last half year.

Speaker #1: So the sales have been close to what we sold as an industry last year. But the market share of agro is quite low compared to last year.

Speaker #1: It is now at 21%, as compared to 29% last year. And if you look at the quarter, it's a similar picture, and we have seen quite a decline in market share from 34% to 17%.

Speaker #1: And again, if you look at the chart on the right, the total inventory— around 74% of the inventory is with Engro Fertilizers.

[Company Representative] (Engro Fertilizers): If you look at the chart on the right, the total inventory, around 74% of the inventory is with Engro Fertilizers. There have been many questions around this. People ask it, again, this is part of our planned strategy. You would appreciate the fact that Engro Fertilizers does have a high gas cost base. Because of that, our base price of our urea bag is higher in the market. When the market is balanced, we definitely will be the urea bag of ours gets picked up later in the order, because the cheaper ones get picked up earlier. We understand that will happen and that has been what we've seen also.

Speaker #1: So— so we debited— many questions around this, people ask this. But again, this is part of our planned strategy. You would appreciate the fact that Engro Fertilizers does have a high gas cost base, and because of that, our price— our base price of our urea bag is higher in the market.

Imran Ahmed: There have been many questions around this. People ask it, again, this is part of our planned strategy. You would appreciate the fact that Engro Fertilizers does have a high gas cost base. Because of that, our base price of our urea bag is higher in the market. When the market is balanced, we definitely will be the urea bag of ours gets picked up later in the order, because the cheaper ones get picked up earlier. We understand that will happen and that has been what we've seen also. Considering the fact that Pakistan has an annual demand of around 6.5 to 6.6 million tons every year, it's a timing difference what we see, and our urea bags will be sold towards the end of the year, because H2 the industry does pick up.

Speaker #1: And when the market is balanced, we definitely will be—our urea bag gets picked up later in the order because the cheaper ones get picked up earlier.

Speaker #1: So—so we understand that that will happen, and that has—that has been what we've seen also. But—but considering the fact that Pakistan has an annual demand of around 6.5 to 6.6 million tons every year, it's a timing difference that we see.

[Company Representative] (Engro Fertilizers): Considering the fact that Pakistan has an annual demand of around 6.5 to 6.6 million tons every year, it's a timing difference what we see, and our urea bags will be sold towards the end of the year, because H2 the industry does pick up. We've received many questions from many of our research friends on the research side, and this has been our clear answer, because we're very clear that this is how we operate. There is no willingness from our side as we speak to offload our inventory by giving discounts. If we have a high inventory position, we're completely comfortable. We have all the arrangements available. Because, as I mentioned, there's an annual market which we're looking into. Moving on the DAP side. DAP, as I mentioned, DAP has become a product which is now very expensive.

Speaker #1: And our urea bags will be sold towards the end of the year, because in the second half, the industry does pick up. So, as a result, we receive many questions from many of our research friends.

Imran Ahmed: We've received many questions from many of our research friends on the research side, and this has been our clear answer, because we're very clear that this is how we operate. There is no willingness from our side as we speak to offload our inventory by giving discounts. If we have a high inventory position, we're completely comfortable. We have all the arrangements available. Because, as I mentioned, there's an annual market which we're looking into. Moving on the DAP side. DAP, as I mentioned, DAP has become a product which is now very expensive. You can see by the sales pattern, especially if you look at Q2 sales, the total industry has sold around 200,000 tons, as against 800,000 tons last year. Our market share has again dipped from 19% to 13%.

Speaker #1: The research side—and this has been our clear answer because we're very clear that this is how we operate. And there is no willingness from our side, as we speak, to offload our inventory by giving discounts.

Speaker #1: So— so if we have a higher inventory position, we're— we're completely comfortable. We have all the arrangements available. And so, because, as I mentioned, there's an annual market which we're looking into.

Speaker #1: Moving on, the DAP side. So DAP, as I mentioned, DAP has become a product which is now very expensive. And you can— you can see by the sales pattern, especially if you look at Q2 sales, it just— the total industry has sold around 200,000 tons, around as against 10,000 tons last year.

[Company Representative] (Engro Fertilizers): You can see by the sales pattern, especially if you look at Q2 sales, the total industry has sold around 200,000 tons, as against 800,000 tons last year. Our market share has again dipped from 19% to 13%. I think the major dip is primarily in the DAP sector of the industry because of the higher market price and the sharp price increase in DAP globally. This is one area which I think has shown decline, quite decline as on an industry basis. Where urea, which you saw in the last slide, has not seen any dip, DAP, yes, has seen a dip. If you look on a H1 basis, we still are close to what we sold last year. The higher prices do depict a lower sales volume.

Speaker #1: So our market share has again dipped from 19% to 13%. But I think the major dip is primarily in the DAP sector of the industry because of the higher market price and the sharp price increase in DAP globally.

Imran Ahmed: I think the major dip is primarily in the DAP sector of the industry because of the higher market price and the sharp price increase in DAP globally. This is one area which I think has shown decline, quite decline as on an industry basis. Where urea, which you saw in the last slide, has not seen any dip, DAP, yes, has seen a dip. If you look on a H1 basis, we still are close to what we sold last year. The higher prices do depict a lower sales volume. The prices remain at that level, the volume may be under pressure in the H2 of the year also. A brief snapshot of the financial numbers. We see quite a bit of reds here.

Speaker #1: So this is one area which I think has—has shown a decline, quite a decline, on an industry basis, where urea, which—we saw in the last slide—has not seen any dip, but DAP, yes, has seen a dip.

Speaker #1: But if you look on a half-yearly basis, we are still close to what we sold last year. But the higher prices do reflect a lower sales volume.

Speaker #1: The prices remain at that level. The volume may be under pressure in the second half of the year as well. So, a brief snapshot of the financial numbers.

[Company Representative] (Engro Fertilizers): The prices remain at that level, the volume may be under pressure in the H2 of the year also. A brief snapshot of the financial numbers. We see quite a bit of reds here. Because there is lower sales as compared to last year, so the revenue and profitability has shown a decline as compared to last year on a H1 basis and also on a quarterly basis. Having said that, the organization has continued to declare dividends. We declared dividend in the Q1, and we also have declared a PKR 1.75 dividend in the Q2.

Speaker #1: So we see quite a bit of reds here. So because we've— there is a lower sales, as compared to last year, so the revenue and profitability has shown— has shown a decline, as compared to last year.

Imran Ahmed: Because there is lower sales as compared to last year, so the revenue and profitability has shown a decline as compared to last year on a H1 basis and also on a quarterly basis. Having said that, the organization has continued to declare dividends. We declared dividend in the Q1, and we also have declared a PKR 1.75 dividend in the Q2. The idea, we've mentioned that, as I mentioned because the accumulation of urea is part of our strategy, we understand how the sales pattern should work, our dividend distribution. There's no changes in dividend policy as I mentioned, and we continue to give out dividends. That's an important message here also for all of you.

Speaker #1: On a half-yearly basis, and also on a quarterly basis. But having said that, the organization has continued to declare dividends. We declared a dividend in the first quarter, and we also have declared a 1.75 dividend in the second quarter.

Speaker #1: So the idea— and— and— and we've— we've mentioned that, as I mentioned, because the accumulation of urea is part of our strategy, and we understand how the sales pattern should work.

[Company Representative] (Engro Fertilizers): The idea, we've mentioned that, as I mentioned because the accumulation of urea is part of our strategy, we understand how the sales pattern should work, our dividend distribution. There's no changes in dividend policy as I mentioned, and we continue to give out dividends. That's an important message here also for all of you. I think I've covered this, but I think the main sort of messages here is the gross profit margin which has been maintained even though we've got lower sales, but the GP margin is maintained. One other important thing is in terms of profitability, there is a one-off gain in terms of GIDC. I'm sure you all are aware of the Gas Infrastructure Development Cess. There was quite a bit of provisioning in the industry, and then there was an industry-wide settlement which took place.

Speaker #1: So our dividend distribution has not taken any—any—there's no change in dividend policy, as I mentioned. And we continue to give out dividends.

Speaker #1: So— so that's an important message here also for all of you. I think I've covered this, but I— I think the main— one of the main sort of messages here is the gross profit margin, which has been maintained, even though we've— we've got lower sales but the GP margin is maintained.

Imran Ahmed: I think I've covered this, but I think the main sort of messages here is the gross profit margin which has been maintained even though we've got lower sales, but the GP margin is maintained. One other important thing is in terms of profitability, there is a one-off gain in terms of GIDC. I'm sure you all are aware of the Gas Infrastructure Development Cess. There was quite a bit of provisioning in the industry, and then there was an industry-wide settlement which took place. Because of that, there is an accounting remeasurement gain which has come in of around PKR 1.5 billion in our financials in June. That also has translated and assisted us in the profit you see for Q2.

Speaker #1: And one other important thing is we— in terms of our profitability, there is— there is one-off gain in terms of SIDC, I'm sure you all are aware of— of the syringe pressure development says there was a— there was a quite a bit of provisioning in the industry, and then there was an industry-wide settlement which took place.

Speaker #1: And because of that, there is an accounting remeasurement gain which has come in. Of around 1.5 billion rupees in our financials in June. So that also has translated, and— and assisted us in the profit loss— in the profit you see for the second quarter.

[Company Representative] (Engro Fertilizers): Because of that, there is an accounting remeasurement gain which has come in of around PKR 1.5 billion in our financials in June. That also has translated and assisted us in the profit you see for Q2. On the debt to capital, we do have high inventory levels, the financing requirements are higher and the debt to capital is on the higher side as we speak. Definitely, it is expected to rationalize towards the end of the year by the time the urea bags get sold. A brief update on our Engro Markaz. Markaz is our brick-and-mortar setups. We are now 10 stores as we speak, and if you see the farmers onboarded, you see there's a healthy increase every quarter-on-quarter basis.

Speaker #1: Similarly, on the debt-to-capital, we do have high inventory levels. So the financing requirements are higher, and the debt-to-capital is on the higher side as we speak.

Imran Ahmed: On the debt to capital, we do have high inventory levels, the financing requirements are higher and the debt to capital is on the higher side as we speak. Definitely, it is expected to rationalize towards the end of the year by the time the urea bags get sold. A brief update on our Engro Markaz. Markaz is our brick-and-mortar setups. We are now 10 stores as we speak, and if you see the farmers onboarded, you see there's a healthy increase every quarter-on-quarter basis. Inshallah, two more shops should be coming live by the next quarter. We've got good feedback and good response from our customers. All our Markaz outlets are run by females. That's one thing which we are very proud about. These are giving good results to the organization. That's why we are continuing to invest in this area.

Speaker #1: But definitely, it is expected to rationalize towards the end of the year, by the time the— the invent— the urea bags get sold. A brief update on our Engro Mercus.

Speaker #1: Mercus is our— as our brick-and-mortar setups. So from— we are on our— we are on our 10 stores. As we speak, and if you see the farmers onboarded, you see there's a— there's a healthy increase every quarter on quarter basis.

Speaker #1: And— and inshallah, two most shops should be coming live, with— by— by the next quarter, as— so— so— so we've got good feedback. And good response from our customers.

[Company Representative] (Engro Fertilizers): Inshallah, two more shops should be coming live by the next quarter. We've got good feedback and good response from our customers. All our Markaz outlets are run by females. That's one thing which we are very proud about. These are giving good results to the organization. That's why we are continuing to invest in this area. We've continued to contribute to the exchequer in terms of taxes and duties to around PKR 9 billion. Again, as I mentioned in the previous slides, urea landed cost on an average for Q1 was around PKR 13,000. Pakistan operated at a discount of 53%, give or take. Current price is lower, and it's not as high as it was in Q2 of 2026. Last slide, pressure enhancement facility.

Speaker #1: We've all our Mercus outlets are run by females. So that's one thing to which we are very proud about. And— and— and mashallah, these— these are giving good results, to the organization.

Speaker #1: That's why we are continuing to invest in this area. So we've continued to contribute to the national exchequer in terms of taxes and duties, to around Rs. 9 billion.

Imran Ahmed: We've continued to contribute to the exchequer in terms of taxes and duties to around PKR 9 billion. Again, as I mentioned in the previous slides, urea landed cost on an average for Q1 was around PKR 13,000. Pakistan operated at a discount of 53%, give or take. Current price is lower, and it's not as high as it was in Q2 of 2026. Last slide, pressure enhancement facility. You all recall the fact this is a development being done by the industry on the Mari network to make sure we have consistent gas supply for the next couple of years. Phase one, scope one complete. Scope two expected to be complete within this quarter, which is Q3. Phase two, which was about installation of the compressors. The installation and activities are in progress. Now we expect them to be complete and fully operational by Q1 2027.

Speaker #1: And again, as I mentioned in the previous slides, the average landed cost of urea for the last quarter was around Rs. 13,000. So, Pakistan operated at a discount of approximately 53%, give or take.

Speaker #1: Current— current price is— is— is— is lower, and it— it's not as high as it— it was in the last— in the second quarter of 2026.

Speaker #1: The last slide, question as a facility—you all recall the fact that this is a development being done by the industry on the Mari network to make sure we have consistent gas supply for the next couple of years.

[Company Representative] (Engro Fertilizers): You all recall the fact this is a development being done by the industry on the Mari network to make sure we have consistent gas supply for the next couple of years. Phase one, scope one complete. Scope two expected to be complete within this quarter, which is Q3. Phase two, which was about installation of the compressors. The installation and activities are in progress. Now we expect them to be complete and fully operational by Q1 2027. There the pressures have been maintained. There is no challenge on the gas side. We are receiving consistent supply of gas with the right pressure. The operational facility will come online, Inshallah, fully online by Q1 2027. That's it from my side. I'll stop sharing, I'll open up the floor for questions.

Speaker #1: So, Phase One—Scope One is complete. Scope Two is expected to be complete within this quarter, which is Q3. Phase Two, which was about installation of the compressors, the installation and activities are in progress.

Speaker #1: And now we expect them to be complete and fully operational by Q1 of next year. So, where the pressures have been maintained, there is no challenge on the gas side.

Imran Ahmed: There the pressures have been maintained. There is no challenge on the gas side. We are receiving consistent supply of gas with the right pressure. The operational facility will come online, Inshallah, fully online by Q1 2027. That's it from my side. I'll stop sharing, I'll open up the floor for questions. If you could please raise your hand so I can refer to you. Mr. Mohammed Zubair

Speaker #1: We are— we are receiving a consistent supply of gas at the right pressure. But— but the facility— the operational facility will come online, inshallah, fully online by Q1 2027.

Speaker #1: So that's it from my side. I'll stop sharing, and then I'll open up the floor for questions. If you can, please raise your hand so I can refer to you.

[Company Representative] (Engro Fertilizers): If you could please raise your hand so I can refer to you. Mr. Mohammed Zubair

Speaker #1: جی، مسٹر محمد زیب۔

Speaker #2: Assalamu Alaikum, sir. Am I audible? Hello? Oh, wonderful. Perfect. First off, I'd like to thank you for a great presentation, and wish you the very, very best of luck in the future orders.

[Analyst]: Asalam Alaikum, sir. Am I audible?

[Analyst 1]: Asalam Alaikum, sir. Am I audible?

[Company Representative] (Engro Fertilizers): We are.

Imran Ahmed: We are.

[Analyst]: Hello. Oh, wonderful. Perfect. First off, I'd like to thank you for a great presentation, wishing you the very, very best of luck in the future quarters. I just had two questions. The first one is regarding your dividend payout. In the last three quarters, including the most recent quarter, your payout policy is or the payout ratio has ranged between 60% to 65%. Prior to those quarters, EFERT's been known to be giving out 100% of its earnings. Is this the new norm that we could expect for the company in future quarters? If you could just shed some light on that, and then I can move on to the next question.

[Analyst 1]: Hello. Oh, wonderful. Perfect. First off, I'd like to thank you for a great presentation, wishing you the very, very best of luck in the future quarters. I just had two questions. The first one is regarding your dividend payout. In the last three quarters, including the most recent quarter, your payout policy is or the payout ratio has ranged between 60% to 65%. Prior to those quarters, EFERT's been known to be giving out 100% of its earnings. Is this the new norm that we could expect for the company in future quarters? If you could just shed some light on that, and then I can move on to the next question.

Speaker #2: So I just had two questions. The first one is regarding your dividend payout. In the last three quarters, especially— and including the most recent quarter, your payout policy does that— or the payout ratio has ranged between 60 to 65 percent.

Speaker #2: And prior to those quarters, if there had been known to be giving out 100 percent of its— of its earnings. So is this the new norm that we can expect for the company in the future quarters, or if you could just shed some light on that, and then I can move on to the next question.

Speaker #1: Yeah, please—please ask the questions first. I can respond to both together.

[Company Representative] (Engro Fertilizers): Yeah, please ask the questions first. I can respond both together.

Imran Ahmed: Yeah, please ask the questions first. I can respond both together.

Speaker #2: Sure, perfect. And then, the other one—I just want to get clarity again on the market share, and how that dropped almost by half for this quarter.

[Analyst]: Sure. Perfect. Then the other one, I just wanted clarity again on the market share and how that dropped almost by half for this quarter. I believe you mentioned something along the lines of, because EFERT's input costs are pretty much one of the highest, that's because of the billing that it gets from SNGPL. I didn't properly get the other part. I just wanted clarity on what you were saying earlier. That's all.

[Analyst 1]: Sure. Perfect. Then the other one, I just wanted clarity again on the market share and how that dropped almost by half for this quarter. I believe you mentioned something along the lines of, because EFERT's input costs are pretty much one of the highest, that's because of the billing that it gets from SNGPL. I didn't properly get the other part. I just wanted clarity on what you were saying earlier. That's all.

Speaker #2: I believe you mentioned something along the lines of, because EFert's input costs are—are pretty much higher than the—are pretty much one of the highest.

Speaker #2: That's because of the billing that it gets from SUI Networks. So—but I didn't properly get the other part. I just need some—I just wanted clarity on what you were saying earlier.

Speaker #2: That's all.

Speaker #1: Perfect. So, thank you for the question. I think I'll take the first question, which is about dividend payout. As I mentioned, there's no change in dividend policy as an organization.

[Company Representative] (Engro Fertilizers): Perfect. Thank you for the question. I think I'll take the first question, which was dividend payout. As I mentioned, there's no change in dividend policy. As an organization, we still intend to distribute dividends as much as possible, subject to approval of the board, definitely. Even in this quarter, if you see, we did distribute a dividend of PKR 1.75 from around PKR 3.

Imran Ahmed: Perfect. Thank you for the question. I think I'll take the first question, which was dividend payout. As I mentioned, there's no change in dividend policy. As an organization, we still intend to distribute dividends as much as possible, subject to approval of the board, definitely. Even in this quarter, if you see, we did distribute a dividend of PKR 1.75 from around PKR 3. It is a 60%-odd distribution as we speak. There's also a different lens looking at it, because as I mentioned, there's also a GIDC accounting remeasurement, which is around PKR 1 in terms of our profitability. From where we see it, maybe it's a 1.75 distribution from PKR 2, right? Which is around 80% odd. That's one way of looking at it. Again, you're right. If you look at it, yes, it is 1.75 out of PKR 3.

Speaker #1: We still intend to distribute dividends, as much as possible, subject to approval of the Board, definitely. And—even if this quarter, if you see, we did distribute a dividend of Rs. 1.75 from around Rs. 3.

Speaker #1: And so it does— it does— it is a 60 percent, 60-odd percent distribution, as we speak. But— but we— there's also a different lens looking at it, because, as I mentioned, there's also an SIDC accounting remeasurement, which is around— which is around 1 rupee in terms of our profitability.

[Company Representative] (Engro Fertilizers): It is a 60%-odd distribution as we speak.

[Company Representative] (Engro Fertilizers): There's also a different lens looking at it, because as I mentioned, there's also a GIDC accounting remeasurement, which is around PKR 1 in terms of our profitability.

Speaker #1: So from where we see it, maybe it's a 1.75 distribution from 2 rupees, right? Which is around 80-odd percent. So that's the one we're looking at.

[Company Representative] (Engro Fertilizers): From where we see it, maybe it's a 1.75 distribution from PKR 2, right? Which is around 80% odd. That's one way of looking at it. Again, you're right. If you look at it, yes, it is 1.75 out of PKR 3. There's no change in dividend policy. We intend to give dividends out. Having said that, we are cautious on the changing dynamics. Let's not forget the fact the war has its own consequences, which we see happening. Prices can go up and have different impacts also. The organization has just been a little cautious in terms of doing distributions. That does not mean that we have changed policy, and it's not a new norm. That's the first answer.

Speaker #1: But again, you're right. If you look at it, yes, it is 1.75 out of 3 rupees. So, there's no change in dividend policy. We intend to give dividends out.

Imran Ahmed: There's no change in dividend policy. We intend to give dividends out. Having said that, we are cautious on the changing dynamics. Let's not forget the fact the war has its own consequences, which we see happening. Prices can go up and have different impacts also. The organization has just been a little cautious in terms of doing distributions. That does not mean that we have changed policy, and it's not a new norm. That's the first answer. The other thing is, as I said, the market share has dipped, you're right, because as I mentioned, when you have a urea bag, which is the most expensive, and you've got ample availability of urea, definitely the bags which are cheaper in price will get picked up first as compared to the ones which are pricey, right? Eventually, these will get picked up.

Speaker #1: But— but having said that, we are cautious on the changing dynamics. Let's not forget the fact that there is a war, and it has its own consequences, which we— which we see happening.

Speaker #1: Prices can—can go up, and—and—and have different impacts also. So the organization has just been a little cautious in terms of dividend distributions.

Speaker #1: But that does not mean that we have— we have changing policy, and that— that it’s not a new norm. I think that’s— that’s the first answer.

Speaker #1: The other thing is, as I said, the market share has dipped. You're right. Because, as I mentioned, when— when you have a urea bag, which is the most expensive, and you've got ample availability of urea, so definitely the bags which are cheaper in price will get picked up first, as compared to the ones which are— which are pricey, right?

[Company Representative] (Engro Fertilizers): The other thing is, as I said, the market share has dipped, you're right, because as I mentioned, when you have a urea bag, which is the most expensive, and you've got ample availability of urea, definitely the bags which are cheaper in price will get picked up first as compared to the ones which are pricey, right? Eventually, these will get picked up. In Pakistan, you understand the total production in Pakistan is around 6.5, 6.6 million tons, give or take, on a yearly basis, right? The demand for Pakistan is around the same number, 6.6.7, 6.5. We can debate on the numbers. That's the range we've seen over the past many years. It's a matter of time. The entire production has to get sold. Yes, you may see a lower market share in Q2 and even in the H1.

Speaker #1: But eventually, these will get picked up. So, in Pakistan—you understand—the total production in Pakistan is around 6.5 to 6.6 million tons, give or take, on a yearly basis, right?

Imran Ahmed: In Pakistan, you understand the total production in Pakistan is around 6.5, 6.6 million tons, give or take, on a yearly basis, right? The demand for Pakistan is around the same number, 6.6.7, 6.5. We can debate on the numbers. That's the range we've seen over the past many years. It's a matter of time. The entire production has to get sold. Yes, you may see a lower market share in Q2 and even in the H1. As per our anticipated expectations and numbers, we should be back to our market share towards the end of the year, because that's when our product will also get sold, right? That's the simple math we're looking into.

Speaker #1: And the demand for Pakistan is around the same number: 6.6, 6.7, 6.5. We can debate on that. That’s—that’s the range we’ve seen over the past many years.

Speaker #1: So, it's a matter of time. The entire production has to get sold. So yes, you may see a lower market share in Q2.

Speaker #1: I mean, even in the first half, but—but as per our anticipated expectations and numbers, we should be back to our market share towards the end of the year.

[Company Representative] (Engro Fertilizers): As per our anticipated expectations and numbers, we should be back to our market share towards the end of the year, because that's when our product will also get sold, right? That's the simple math we're looking into. Excuse me, Zaid. Zaid, you have a question? You raised your hand.

Speaker #1: Because that's when our product will also get sold, right? So— so that's the simple math we're looking into. Do— do you, Zaib? Do you, Muhammad Zaib, have a question?

Abdullah Kothawala: Excuse me, Zaid. Zaid, you have a question? You raised your hand.

Speaker #1: You raised your hand.

Speaker #2: Perfect, sorry. Yeah, I just— I had one— I had one more question. So, in regards to your procurement of DAP, of course, with all that's happening in the Middle East— so, is that largely— so where exactly are you now procuring DAP from, or has the strategy been changed in order to save co— save freight costs, or in any way to gear up for the upcoming rugby season?

[Analyst]: Perfect. Sorry. Yeah. I had one more question. In regards to your procurement of DAP, of course, with all that's happening in the Middle East. Where exactly are you now procuring DAP from, or has the strategy been changed in order to save freight costs in any shape or way to gear up for the upcoming rabi season? If you could just shed some light on that as per what the company strategy is to maintain margins and-

[Analyst 1]: Perfect. Sorry. Yeah. I had one more question. In regards to your procurement of DAP, of course, with all that's happening in the Middle East. Where exactly are you now procuring DAP from, or has the strategy been changed in order to save freight costs in any shape or way to gear up for the upcoming rabi season? If you could just shed some light on that as per what the company strategy is to maintain margins and—

Speaker #2: So if you could just shed some light on that, as per what the company's strategy is to maintain margins and—

Speaker #1: Yeah, there's no— there's no change in strategy. I think it's just, as I said, again, it's just being a cautious approach. Because once you have DAP sort of co— DAP sort of cargo is available to the north of 900 dollars, and— and Pakistan generally has not seen prices over 16, 15, 16,000 rupees on the historic basis.

[Company Representative] (Engro Fertilizers): There's no change in strategy. I think it's just, as I said, again, it's just being a cautious approach because once you have DAP sort of cargos available to the north of $900, Pakistan generally has not seen prices over PKR 15,000, PKR 16,000 on a historic basis, you would have cautious buys. To add up to the challenge, there's also challenges of the Strait of Hormuz and others being closed also. The idea is to procure DAP and remain consistent in the market. That's why you see we are holding an inventory also as we speak. It is a pricey inventory, we understand. The sale pattern is slow, not only for us, for the entire industry. Again, there's no change in strategy.

Imran Ahmed: There's no change in strategy. I think it's just, as I said, again, it's just being a cautious approach because once you have DAP sort of cargos available to the north of $900, Pakistan generally has not seen prices over PKR 15,000, PKR 16,000 on a historic basis, you would have cautious buys. To add up to the challenge, there's also challenges of the Strait of Hormuz and others being closed also. The idea is to procure DAP and remain consistent in the market. That's why you see we are holding an inventory also as we speak. It is a pricey inventory, we understand.

Speaker #1: So you will have cautious buys. And—to add to the challenge—there are also challenges of the state of hormones and others being closed also.

Speaker #1: So, the idea is to procure DAP and remain consistently in the market. That's why you see we are holding an inventory also, as we speak.

Speaker #1: It is a pricey inventory, we understand. And the sale pattern is slow—not only for us, but for the entire industry.

Imran Ahmed: The sale pattern is slow, not only for us, for the entire industry. Again, there's no change in strategy. We will continue to be suppliers of DAP. We are making sure and definitely we look around and we try to seek the best deals available. We do get it right, we get it wrong also at times. We try and seek the best deals and make sure that we are in the market. [Foreign language].

Speaker #1: But again, those changes in strategy, we will continue to be suppliers of DAP. And we're making sure— and we— and definitely, we— we look around, and we try to seek— seek the best deals available.

[Company Representative] (Engro Fertilizers): We will continue to be suppliers of DAP. We are making sure and definitely we look around and we try to seek the best deals available. We do get it right, we get it wrong also at times. We try and seek the best deals and make sure that we are in the market. जी, Osama. Osama bin Hail. Osama Elahi साहब।

Speaker #1: We do—we do it right. We do get it wrong also at times. But we try and seek the best deals, and make sure that we're in the market.

Speaker #1: Jio Sama. So, Sama, can you hear me? Sama? Elahi Sam?

Speaker #3: Yes. Assalamualaikum. Sorry, my job allowed to, yeah, mute for that. Basically, میرا سوال ایک یہ ہے کہ I think even two quarters back یہ ایک چیز foresee ہو رہی تھی دسمبر میں جب inventory کافی اتری کہ جب discount دیا تو sale ہو گئی۔ And again, I— I assumed because اس وقت ایک rumor تھا کہ ہم 1.5 million inventory کو touch کر رہے ہیں back in, I think, December, November.

Osama Elahi: जी, अस्सलाम वालेकुम। Sorry, मुझे अब allow किया। Mute था। Basically मेरा सवाल यह है कि I think even two quarters back, यह एक चीज foresee हो रही थी December में जब inventory काफी उतरी कि जब discount दिया तो sale हो गई। Again, I assumed because उस वक्त एक rumor था कि हम 1.5 million inventory को touch कर रहे हैं back in, I think December या November, I don't remember. यह था कि अगर export के allowance हो गई तो उसमें यह बहुत helpful हो जाएगा। एक अच्छी price पर आपकी inventory ज्यादा उतर जाएगी। मगर in any case, inventory थोड़ी बहुत कम हो गई। मगर again first half of calendar year 26, इसमें फिर again वही काम हो गया कि inventory फिर बढ़ गई है and now we expect कि वह hopefully reduce हो जाएगी by the end of the year.

[Company Representative] (Engro Fertilizers): [Foreign language].

Speaker #3: I don't remember, but تو یہ تھا کہ اگر export کے allowance ہو گئی تو اس میں یہ ہوگا بڑا helpful ہو جائے گا، ایک اچھی price پہ آپ کی inventory زیادہ اتر جائے گی۔ مگر وہ, in any case, ہاں, inventory lose تھوڑی بہت کم ہو گئی۔ مگر again, first half of یہ calendar year 2026, اس میں پھر again وہی کام ہو گیا ہے کہ inventory پھر چڑھ گئی ہے۔ And now we expect کہ اتر جائے, وہ hopefully reduce ہو جائے گی by the end of the year.

Speaker #3: But وہ ہوئے گی after giving discount کا suppose ٹھیک ہے۔ تو یہ ایک عجیب ایک vicious سا cycle بنتا جا رہا ہے ہمارے لیے۔ تو بس میں اس پہ تھوڑا سا worrisome تھا کہ اس کا اس کا end کیا ہے۔ اور پھر ایک second question، I think، maybe part of the answer to this as well کہ the finance cost جو ہیں، وہ drag کر رہی ہیں کافی earnings کو اس وقت۔ اور اس کی ایک وجہ، وہ hundred million ڈالر کی جو investment ہے، پی اے ایف کی، تو یہ سارا کب normalize ہوگا؟ finance cost کب normalize ہوتی ہوئی آپ کو نظر آ رہی ہے؟ اور اس میں کب بہتری feel ہوئے گی؟ اور یہ جو vicious cycle، ایک جو میں جس کو میں assume کر رہا ہوں، غلط ہو سکتا ہے، مگر ایک آپ کے کیا اس پہ view ہے تھوڑا سا؟ جزاک اللہ۔ السلام علیکم۔

Osama Elahi: वह होएगी after giving discount, I suppose। तो यह एक अजीब vicious cycle बनता जा रहा है हमारे लिए। तो बस मैं उससे थोड़ा सा worrisome था कि इसका end क्या है? और फिर एक second question, I think maybe part of the answer to this is the finance cost जो है वह quite drag कर रही है earnings को इस वक्त। और उसकी एक वजह वह $100 million की जो investment है PEF. तो यह सारा कब normalize होगा? Finance cost कब normalize होती हुई आपको नजर आ रही है और इसमें कब relief feel होगी? और यह vicious cycle जिसको मैं assume कर रहा हूँ, गलत हो सकता है, मगर आपका क्या इस पर view है? जरा सा। Jazakallah। अस्सलाम वालेकुम।

[Company Representative] (Engro Fertilizers): [Foreign language].

Speaker #2: وعلیکم السلام۔ اچھا، دیکھیں، پہلی بات تو I think I'll— I'll take the second part. دیکھیں، جہاں پہ financial charges کی بات کی، financial charges has more to do with the whole inventory holding.

[Company Representative] (Engro Fertilizers): वालेकुम अस्सलाम। पहली बात तो I think I will take the second part where financial charges की बात की। Financial charges has more to do with the whole inventory holding rather than the investment which we are doing on the long term जो हमने बाकी अपनी projects के लिए की है। More to do with the inventory holding. That's one answer. आपकी बात यह सही है कि definitely last year में as an industry we were giving discounts and the sales pattern you could see. Because you just saw on the previous slide, जब मैं slightly पहले show कर रहा था कि industry की H1 की sale is higher than last year. Right? The industry technically has been operating without discounts this year. अगर आप last year को देखें तो everyone was giving discounts by us and other players also.

Imran Ahmed: [Foreign language].

Speaker #2: Rather than the investment which we're doing on the long term, جو ہم نے باقی اپنی projects کے لیے لیے۔ So, more to do with the inventory holding.

Speaker #2: So that's my answer. دیکھیں، آپ کی بات یہ صحیح ہے کہ definitely last time, last year میں as an industry, we were given discounts.

Speaker #2: And the sales pattern, you could see. لیکن you just saw in the previous slide جب میں نے public revenue show کر رہا تھا کہ industry کی half year کی sale is higher than last year.

Speaker #2: Right? And the industry, technically, has been operating without discounts this year. تو اگر آپ last year کو دیکھیں تو everyone was given discounts by us and other players also.

Speaker #2: This year, the major players are not—are not into discounts. Right? Even then, you see higher sales. تو دیکھیں، یہ جو آپ نے بات کی تھی نا، this is how things get normalized and rationalized.

[Company Representative] (Engro Fertilizers): This year the major players are not into discounts. Even then you see higher sales. यह जो आपने बात की थी, this is how things get normalized and rationalized. It's a game of patience also. That's why when I mentioned the fact कि we understand we are holding. अभी inventory सबसे ज्यादा hold मैं कर रहा हूँ। अगर किसी को panic करना चाहिए, it should be me. We understand the fact that this is how it will play out and it's a game of patience. That's why as I mentioned also in presentation, there is no intent to give discounts out. Because we are very confident on the overall market of urea and it does sort of come to a level of around 6.5, 6.6 million tons, which means that the entire production gets sold on a yearly basis.

Imran Ahmed: This year the major players are not into discounts. Even then you see higher sales. [Foreign language]. We understand the fact that this is how it will play out and it's a game of patience. That's why as I mentioned also in presentation, there is no intent to give discounts out. Because we are very confident on the overall market of urea and it does sort of come to a level of around 6.5, 6.6 million tons, which means that the entire production gets sold on a yearly basis.

Speaker #2: It's— it's a game of patience also, right? And that's why when I mentioned the fact کہ we understand we're holding— دیکھیں، ابھی inventory سب سے زیادہ hold میں کر رہا ہوں۔ سو اگر کسی کو panic کرنا چاہیے, it should be me.

Speaker #2: But we understand the fact that this is how it will play out. And it's a game of patience. And that's why, as I mentioned also in my presentation, there is no intent to give discounts out.

Speaker #2: And— and because we are very confident on the overall market of urea, and it does sort of come to a level of around 6.5, 6.6 million tons, which means that the entire production gets sold on a yearly basis.

Speaker #2: So it's a game of patience also. So—to answer your question on the vicious cycle you mentioned, I think as of now there is no intention to give discounts and, for lack of a better word, enter that cycle again.

[Company Representative] (Engro Fertilizers): It's a game of patience also. To answer your question, vicious cycle के साथ मैंने बात की थी। I think as of now there is no intention to give discounts and lack of better word, enter that cycle again. जी, Mr. Omar.

Imran Ahmed: It's a game of patience also. To answer your question, vicious cycle [Foreign language]. I think as of now there is no intention to give discounts and lack of better word, enter that cycle again. [Foreign language].

Speaker #2: جی مسٹر عمر، جی، السلام علیکم۔

[Analyst]: جی، اسلام وعلیکم۔

[Analyst 2]: [Foreign language].

Speaker #1: جی وعلیکم السلام۔

[Company Representative] (Engro Fertilizers): जी, वालेकुम अस्सलाम।

Imran Ahmed: [Foreign language].

Speaker #4: اچھا سر، میرا question یہ تھا کہ in future کیا ایسی possibility ہے کہ جیسے ایف ایف سی کو cheaper گیس مل جائے، کہ ایفرٹ کو بھی ایسی possibility ہو سکتی ہے؟ اور آپ کے اس— آپ کے خیال سے ایسا کون سا case ہو سکتا ہے کہ in future میں ایفرٹ کے لیے ایسی policy بن سکتی ہے؟ اور secondly، میرا question یہ ہے کہ کیا ایفرٹ کے plan میں کچھ ایسا ہے جیسے ایف ایف سی کا دو ہزار تیس میں agreement ہوا ہے کہ وہ ایک چائنا کے ساتھ agreement کیا ہے انہوں نے کہ coal سے وہ fertilizer بنانے کے لیے کچھ کریں گے، ایسا کچھ؟ کیا ایفرٹ کے بھی plan میں کچھ ایسی چیزیں ہیں؟ kind in دو question کا answer کر دیجیے گا۔

[Analyst]: अच्छा sir, मेरा question यह था कि in future क्या ऐसी possibility है कि जैसे FFC को cheaper gas मिली है, EFERT को भी ऐसी possibility हो सकती है? और आपके ख्याल से कौन सा case हो सकता है कि in future में EFERT के लिए ऐसी policy बन सकती है? और secondly मेरा question यह है कि क्या EFERT के plan में कुछ ऐसा है जैसे FFC का 2030 में agreement हुआ है कि उन्होंने China के साथ एक agreement किया है कि coal से वह fertilizer बनाने के लिए कुछ करेंगे। ऐसा कुछ EFERT के भी plan में कुछ ऐसी चीजें हैं? Kindly इन दो questions का answer कर दीजिएगा।

[Analyst 2]: [Foreign language].

Speaker #1: دیکھیں، دیکھیں، پہلی بات تو یہ ہے کہ آپ نے cheaper gas کی بات کی، تو cheaper gas is a phenomenon of the reservoirs you get gas from.

[Company Representative] (Engro Fertilizers): देखिए, पहली बात थी आपने cheaper gas की बात की तो cheaper gas is a phenomenon of the reservoir you get gas from. FFC का अपने एक structure है, हमारा अपना structure है। Yes, there are efforts at our end also to see where we can rationalize and improve our gas cost. There are definitely certain initiatives at our end with trying to work with the ministry to get hold of those. That's from that side. On the other side, FFC ने कहा they are venturing into coal. I think it's a great initiative at their end. I can only tell you there are also multiple initiatives under discussion and under evaluation at Engro's end. We will inform the market when the right time comes, inshallah. We have got someone from Topline Securities.

Imran Ahmed: [Foreign language]. Yes, there are efforts at our end also to see where we can rationalize and improve our gas cost. There are definitely certain initiatives at our end with trying to work with the ministry to get hold of those. That's from that side. On the other side, [Foreign language] they are venturing into coal. I think it's a great initiative at their end. I can only tell you there are also multiple initiatives under discussion and under evaluation at Engro's end. We will inform the market when the right time comes, inshallah.

Speaker #1: So— so ایف ایف سی کے اپنے ایک ایک اس میں ایک structure ہے، ایک ہمارا اپنا structure ہے۔ And— and— and yes, there are efforts at our end also to— to— to see where we can rationalize and improve our— our gas cost.

Speaker #1: And there are definitely—there are certain initiatives at our end, and trying to work with the ministry to get hold of those.

Speaker #1: Right? That's— that's from that side. On the other side, جیسے آپ نے کہا, دیکھیں, there are جیسے FFC, آپ نے کہا, they're venturing into coal.

Speaker #1: I think it's a great initiative at their end, and I can only tell you there are also multiple initiatives under discussion and evaluation at Engro's end.

Speaker #1: And we will inform the market when the right time comes, insha'Allah. We've got someone from Topline Securities.

Abdullah Kothawala: We have got someone from Topline Securities.

Speaker #2: جی سر، thank you، thank you عمران صاحب۔ This is Shankar from Topline Securities. اچھا، just wanted to get some clarity on the pressure enhancement facility جو کیپیکس تھا، if I can recall, ایک تو جو پلیٹو— پلیٹو maintain کرنا تھا ایچ آر ایل کا، اس purpose کے لیے تھا، دوسرا جو under the plan تھا، وہ گزی جو شوال ان دو fields کے volumes کو cater کرنے کے لیے تھا، down the road، جس کی around 200 million ڈالر کیپیکس ہے۔ تو یہ دو دو الگ الگ پروجیکٹس تھے۔ ابھی جو complete ہوا ہے، وہ ایچ آر ایل والا complete ہوا ہے، اور جو دوسرا آپ کہہ رہے ہیں کہ first quarter of 2027 میں complete and operational ہو جائے گا، کیا وہ گزی جو شوال والا ہے، جس سے 222 ایم ایم سی ایف ڈی جو ہے، اس پہ اس پہ تھوڑی سی clarity چاہیے؟ because these both are separately and دوسرا because of the destruction and gas supply to agri-tech and ایف ایف بی ایل فاطمہ فرٹ کی بھی ایک آدھے مہینے کے لیے نہیں ملی تھی گیس، so what is the quantum of the production loss that industry has seen during last six to seven months?

Shankar Talreja: जी sir. Thank you, Ma'am साहब। This is Shankar Talreja from Topline Securities. Just wanted to get some clarity on the pressure enhancement facility जो CapEx था

Shankar Talreja: [Foreign language]. Thank you, Ma'am साहब। This is Shankar Talreja from Topline Securities. Just wanted to get some clarity on the pressure enhancement facility [Foreign language].

Shankar Talreja: If I can recall, एक तो जो plateau maintain करना था, HRL का purpose के लिए था. दूसरा जो under the plan था वो Ghazij जो Shawal इन दो fields के volumes को cater करने के लिए था down the road, इसकी around $200 million capital है. तो ये दो अलग-अलग projects थे. अभी जो complete हुआ है, वो HRL वाला complete हुआ है और जो दूसरा आप कह रहे हैं कि Q1 2027 में complete and operational हो जाएगा. क्या वो Ghazij जो Shawal वाला है, जिसमें 222 MMCFD जो है, इस पर थोड़ी सी clarity चाहिए because both are separately and दूसरा because of the disruption in gas supply to Agritech and FFBL, Fatima Fert के भी एक आधे महीने के लिए नहीं मिली थी gas. What is the quantum of the production loss that industry has seen during last 6 to 7 months?

Shankar Talreja: [Foreign language].

Speaker #2: اور as of now what is the situation? صبح کو جب ایف ایف سی کے ساتھ briefing تھی، ایف ایف بی ایل کے plant کو تو gas supply continuing تھی، agri-tech کو ابھی بھی نہیں مل رہی، and what about the Fatma Fort, you know, compared to that?

Shankar Talreja: As of now, what is the situation? सुबह को जब FFC के साथ briefing थी, FFBL के plant को gas supply continue थी. Agritech को अभी भी नहीं मिल रही है and what about the Fatima Fert in comparison to that? Over to you. Thank you.

Shankar Talreja: [Foreign language].

Speaker #2: اور thank you.

Speaker #1: ٹھیک ہے۔ دیکھیں، I think this is a—thank you for asking this question. دیکھیں، پہلی بات تو یہ ہے کہ میں نے جو update دی ہے آپ کو, that is the pressure enhancement facility only for the Habib Rahi, اس کو "ایچ آر reservoir" کہتے ہیں, which is a $300 million investment by the entire industry.

[Company Representative] (Engro Fertilizers): Thank you for asking this question. देखिए, पहली बात तो यह कि मैंने जो update दिया आपको that is the pressure enhancement facility only for the Habib Rahi, जिसको HRL reservoir कहते हैं, which is a $300 million investment by the entire industry. उसकी update मैंने आपको दी है, which will come live उसी के दो parts से, एक Phase 1 था, एक Phase 2 था. उसका Phase 2 will come live Inshallah by Q1 2027. That's the project I was talking to. जो दूसरा आपने Ghazij वाली बात की, that is $200 million जो आपने कहा है, it is a separate topic जिसको मैंने cover नहीं किया because as of now we are not part of that particular investment because that is being done by the other players as we speak, not us.

Imran Ahmed: Thank you for asking this question. [Foreign language].

Speaker #1: So, اس کی update میں نے آپ کو دی ہے, which will come live. اسی کے دو parts تھے; ایک phase one تھا، ایک phase two تھا, اور اس کا phase two will come live, انشاءاللہ, by the first quarter of 2027.

Speaker #1: So that's the project I was talking about. جو دوسرا آپ نے غزیج والی بات کی ہے, that's a $200 million جو آپ نے کہا ہے, that is a separate topic.

Speaker #1: Jis ko main ne cover nahin kiya, because as of now we are not part of that—of that particular investment. Because that is being done by the other players as we speak, not us.

Speaker #1: Because they’re—they’re moving—they’ll be using غزیج in the initial part, as per their overall scheme جو approve ہوئی ہے گیس کی. So—so that’s one answer.

[Company Representative] (Engro Fertilizers): They will be using the reach in the initial part as per the overall scheme जो approval हुई gas की. That's one answer. दूसरी बात आपने कहा gas plants का तो you are right. As per our understanding also and I think FFC की भी आज list briefing थी, they have also mentioned the fact that Agritech is still closed down. इसको gas नहीं मिली है. FFBL has restarted its operation.

Imran Ahmed: [Foreign language].

Speaker #1: دیکھیں، دوسری بات آپ نے کہا کہ گیس جو پلانٹس کا، so you're right, as per our understanding also, and I— آج I think ایف ایف سی کی بھی آج یہ بریفنگ تھی، they've also mentioned the fact that agri-tech has not— is not— is still closed down.

Speaker #1: اس کو گیس نہیں ملی ہے۔ FFBL has restarted its operation. As far as I understand, جو فاطمہ کے plant کا بند ہوا تھا گیس کے ایشو کی وجہ سے، وہ ابھی تک start نہیں ہوا ہے۔ So یہ، اور یہ اس میں کوئی چھ مہینے کی آپ نے بات کی، چھ مہینے کی بات نہیں ہے، recent closure ہے یہ۔ Because recently آپ کو پتہ ہے، گیس supply کے challenges ہوئے ہیں۔ So government نے recently ان کو shut down کیا ہے، ان plants کو۔ So it is no— تو کوئی بہت بڑا impact in terms of supply constraint ابھی نہیں ہے، because it has just happened.

[Company Representative] (Engro Fertilizers): As far as I understand, जो Fatima का plant बंद हुआ था gas के, वो भी तक उसमें start नहीं हुआ है. इसमें कोई छह महीने की आपने बात की, छह महीने की बात नहीं है. Recent closure है ये because recent आपको पता है gas supply के challenges हुए हैं. Government ने recently इनको shut down किया है इन plants को. There is no तो कोई बहुत बड़ा impact in terms of supply constraint अभी नहीं है because it has just happened. I think it will take between 50,000 to 60,000-70,000 tons का impact पड़ सकता है, depending on how long these plants remain closed. I think that's the number we see because of the close of these plants. जी, Zainab Khan.

Imran Ahmed: [Foreign language].

Speaker #1: And I think, give or take, I think between 50,000 to 60,000, 70,000 tons ka impact pad sakta hai, depending on how long these plants have been closed.

Speaker #1: لیکن I think that's the number we see, because of the close of these plants. جی، زینب خان۔

Speaker #3: السلام علیکم۔

Zainab Saleem: Assalamualaikum.

Zainab Saleem: [Foreign language].

Speaker #1: You are Islam?

[Company Representative] (Engro Fertilizers): Wa alaikum assalam.

Imran Ahmed: [Foreign language].

Speaker #3: مجھے سوال پوچھنا تھا کہ جیسے ہماری فارم اکنامک انڈسٹری ہے، اس کا سائز اب تقریباً مستقل ہے۔ اس میں ابھی کوئی اتنا اضافہ نہیں آ رہا۔ اور اسی کے ساتھ اگر کوئی اور انڈسٹری پلیئر ہے، وہ اور کوئی فرٹیلائزر اگر اپنے اسٹیبلش کرے تو ان سے ان کی پروڈکشن میں اضافہ ہوگا۔ تو اس کا آپ کے مارکیٹ شیئر پر کیا اثر ہوگا؟

Zainab Saleem: मुझे question पूछना था कि जैसे कि हमारी जो pharma economic industry है, उसका size अब almost constant है। उसमें अभी कोई इतना increase नहीं आ रहा और उसके साथ-साथ अगर कोई आपका industry player है, वो और fertilizer अगर अपने establish करें तो उनसे उनकी production increase होगी। तो उसका आपके market share पर क्या impact होगा?

Zainab Saleem: [Foreign language].

Speaker #1: Sorry, میں آپ کا سوال سمجھا نہیں۔

[Company Representative] (Engro Fertilizers): Sorry, आपका सवाल समझा नहीं।

Imran Ahmed: [Foreign language].

Speaker #3: میں پوچھنا چاہ رہی ہوں آپ سے کہ جیسے کہ ہمارا جو industry size ہے، demand ہے، وہ constant ہے۔ اس میں کوئی ایسا near period میں rise نہیں آ رہا۔ اور اس کے ساتھ ساتھ اگر کوئی اور industry player اور fertilizer اپنے establish کرے اور مطلب یوریا ہی produce کرنا start کر دے تو اس کا impact آپ کے market share پہ کیا آئے گا؟

Zainab Saleem: मैं पूछना चाह रही हूँ आपसे कि जैसे कि हमारा जो industry size है, demand है, वो constant है। उसमें कोई ऐसा near period में rise नहीं आ रहा। और उसके साथ-साथ अगर कोई और industry player और fertilizer अपने establish करें, और urea produce करना start कर दे, तो उसका impact आपके market share पर क्या होगा?

Zainab Saleem: [Foreign language].

Speaker #1: دیکھیں، یہ تو بڑا ایک—I think—difficult to answer because, first of all, as I mentioned کہ جو اگر ہماری جو current demand supply ہے، تو equally available supply اگر وہ source ہو رہی ہے، تو کوئی دوسرا player اگر آئے گا تو وہ کس basis پہ آئے گا؟ کتنی capacity لے کے آئے گا؟ کب آئے گا؟ I think there are multiple questions to it.

[Company Representative] (Engro Fertilizers): देखिए, ये तो बड़ा difficult to answer because first of all, as I mentioned कि अगर हमारी जो current demand supply है, तो equally available supply अगर source हो रही है. कोई दूसरा player अगर आएगा तो वो किस basis पर आएगा, कितनी capacity लेकर आएगा, कब आएगा? I think there is multiple questions to it. I think it's difficult to answer कि मेरे market share पर क्या impact पड़ेगा. It also depends on the fact कि वो अगर आएगा तो कौन सी gas से लगाएगा, उस gas की price क्या होगी? There are multiple such scenarios which you can look at before I think I will be able to answer this question.

Imran Ahmed: [Foreign language].

Speaker #1: I think it's difficult to answer کہ میرے market share پہ کیا impact پڑے گا۔ It also depends on the fact کہ وہ اگر آئے گا تو وہ کون سی gas سے لگائے گا؟ اس gas کی price کیا ہوگی؟ And there are multiple, I think, scenarios which you can look at before I think I will be able to answer this question.

Speaker #3: اور ابھی جیسے کہ جو فوجی فرٹیلائزر ہیں، وہی اگر اپنے نئے فرٹیلائزر جو ہیں، وہ ابھی اسٹیبلش کر رہے ہیں۔ جب وہ اسٹیبلش ہو جائیں گے، رننگ میں آ جائیں گے، ان کا پھر امپیکٹ... تو وہ تو سمجھیں پاسیبل ہے نا کہ وہ اسٹیبلش ہو جائیں گے اور پروڈکشن بھی اسٹارٹ کر دیں گے۔ تو ان کا امپیکٹ تو آ سکتا ہے پھر۔

Zainab Saleem: अभी जैसे कि जो Fauji Fertilizer हैं, वो अपने अगर नए fertilizer जो हैं, वो अभी establish कर रहे हैं। जब वो establish हो जाएंगे, running में आ जाएंगे, उनका फिर impact तो वो समझें possible है ना कि वो तो establish हो जाएंगे और production भी start कर देंगे। तो उनका impact तो आ सकता है फिर।

Zainab Saleem: [Foreign language].

Speaker #1: جی جی، لیکن وہ آپ کی بات صحیح ہے۔ لیکن آپ یہ بھی تو ایک سمجھیں نا کہ جو اگر وہ ایک plant لگا رہے ہیں، جو ابھی آپ نے I think آپ کے coal plant کی بات کر رہی ہیں if I'm not wrong جی۔ آپ اسی کی بات کر رہی ہیں؟

[Company Representative] (Engro Fertilizers): जी, लेकिन वो आपकी बात सही है। आप ये भी तो समझें ना कि जो अगर वो एक plant लगा रहे हैं, I think आप उनके coal plant की बात कर रही हैं, if I am not wrong. आप उसी की बात कर रही हैं?

Imran Ahmed: [Foreign language].

Speaker #3: جی۔

Zainab Saleem: जी।

Zainab Saleem: [Foreign language].

Speaker #1: اچھا، تو دیکھیں، جو coal plant، اگر وہ assessment کر بھی رہے ہیں، تو you understand the fact کہ یہ plant کو live آتے ہوئے بھی it will take them a couple of years, right?

[Company Representative] (Engro Fertilizers): अच्छा. देखिए, the coal plant अगर वो assessment कर भी रहे हैं, तो understand the fact कि ये plant को live आते हुए भी it will take them couple of years. It's a normal process for any company to do that. There is also an annual growth in demand which Pakistan sees in terms of the need for urea. That's how it will operate because देखिए as I mentioned if आज मैं ये कह रहा हूँ कि market balanced है. Which means कि demand supply बराबर है, तो अगर थोड़ी सी भी increase in demand हो गई तो आपके current suppliers वो पूरा नहीं कर पाएंगे ना. There will be a need for additional supply. Now that could be imported or that could produce internally. मेरे हिसाब से ऐसा कोई challenge नजर नहीं आता मुझे once that comes in.

Imran Ahmed: [Foreign language].

Speaker #1: It's a normal process for any company to do that, right? And there is also an annual growth in demand, which Pakistan sees in terms of the need for urea.

Speaker #1: So, so, so that's how it will operate because دیکھیں، as I mentioned, اگر آج میں یہ کہہ رہا ہوں کہ market balanced ہے, right? Which means کہ demand supply برابر ہے۔ تو اگر تھوڑی سی بھی increase in demand ہو گی تو آپ کی current supply اس کو پورا نہیں کر پائیں گے نا؟ So there will be a need for additional supply.

Speaker #1: Now, that could be imported or that could be produced internally. So, so میرے حساب سے ایسا کوئی challenge نظر نہیں آتا مجھے۔ Once that comes in.

Speaker #1: اب وہ ایک دم سے کوئی بہت سارے، چار پانچ plants آ جائیں تو I can't comment on that. لیکن as I said, I think it's a process which we all go through.

[Company Representative] (Engro Fertilizers): अब वो एकदम से कोई बहुत सारे चार-पांच plants आ जाएं, तो I can't comment on that. As I said I think it's a process which we all go through. इसी तरह आप देखेंगे पिछले बहुत साल पहले, 10 से 12 साल पहले भी जब Pakistan में urea की demand ज्यादा थी और shortage थी तो new plants came in and they got their market share eventually. I think that's the process which will work.

Imran Ahmed: [Foreign language].

Speaker #1: And اسی طرح آپ دیکھیں گے، پچھلے بہت سال پہلے، آج سے دس، بارہ سال پہلے بھی، جب پاکستان میں یوریا کی demand زیادہ تھی اور shortage تھی، تو new plants came in and they got their market share eventually.

Speaker #1: So I think that's the process; it will work.

Speaker #3: اوکے، تھینک یو سو مچ۔

Zainab Saleem: Okay, thank you so much.

Zainab Saleem: Okay, thank you so much.

Speaker #1: You're welcome. اچھا جی، مسٹر اے بی بی ہیں کوئی؟

[Company Representative] (Engro Fertilizers): You're welcome. मुझे लगता है Mr. ABB है कोई।

Imran Ahmed: You're welcome. [Foreign language].

Speaker #4: جی سر، میں آڈیبل؟

[Analyst]: Yes sir, am I audible?

[Analyst 3]: Yes sir, am I audible?

Speaker #1: Ji ji, I can hear you.

[Company Representative] (Engro Fertilizers): जी, I can hear you.

Imran Ahmed: [Foreign language], I can hear you.

Speaker #4: Yeah, thank you. So, سر، میرا سوال یہ ہے کہ جیسے آپ کے financial books دیکھیں تو آپ کا جو free cash flow ہے، وہ negative چل رہا ہے۔ دو، وہ اس کی وجہ یہ ہے کہ آپ کی investment جو size ہے، وہ بڑھ گیا ہے۔ لیکن میرا اس میں سوال یہ ہے کہ آپ یہ کچھ بتا سکتے ہیں کہ آپ کا جو free cash flow ہے، وہ in future کب تک مطلب positive کی طرف ہو جائے گا؟ دو، اس کا main issue یہی ہے کہ آپ کا جو working capital ہے، اس میں hiccups آ رہے ہیں۔ جیسے آپ کا inventory level جو ہے، وہ تھوڑا high ہو گیا ہے۔ مطلب، آپ اس کو ایک طرح سے manage نہیں کر پا رہے۔ اور ساتھ یہ بھی بتا دیں کہ جیسے کل ہمیں پتا ہے کہ yesterday جو EFERT ہے، وہ 187.08 میں close ہوا ہے، ایک طرح کے 52-week low رہا ہے، جو کہ historical ایک بات ہے۔ تو مطلب میرا سوال آپ سے یہ ہے کہ as an investor point of view سے دیکھا جائے، تو وہ ہمیشہ یہی expect کرتا ہے کہ EFERT جو ہے، وہ dividend اچھا دیتا ہے، حالانکہ وہ بھی جو ایک prospect تھا، وہ بھی ایک طرح سے ختم ہو چکا ہے۔ ہم دیکھ چکے ہیں۔ تو آپ کچھ بتا سکتے ہیں مطلب اس کے بارے میں کہ یہ کس طرح turn around ہوگا آپ کی کمپنی میں؟ Thank you.

[Analyst]: Thank you.

[Analyst 3]: Thank you.

[Analyst]: मेरा सवाल यह है कि जैसे आपके financial books देखें तो आपका जो free cash flow है वो negative चल रहा है। Though इसकी वजह यह है कि आपके investment जो size है वो बढ़ गया है। लेकिन मेरा इसमें सवाल यह है कि आप यह कुछ बता सकते हैं कि आपका जो free cash flow है वो in future कब तक positive की तरफ हो जाएगा। Though इसका main issue यह है कि आपका जो working capital है उसमें hiccups आ रहे हैं। जैसे आपका inventory levels है वो थोड़ा high हो गया है। मतलब आप इसको एक तरह से manage नहीं कर पा रहे। और शायद यह भी बता दें कि जैसे कल हमें पता है कि yesterday जो EFERT है वो 187.08 में close हुआ, एक तरह से 52 week low रहा है, जो कि historical एक बात है। तो मेरा सवाल आपसे यह है कि as a investor point of view से देखा जाए तो वो हमेशा यही expect करता है कि EFERT dividend अच्छा देता है। हालांकि वो भी जो एक prospect था वो भी एक तरह से खत्म हो चुका है, हम देख चुके हैं। तो आप कुछ बता सकते हैं इसके बारे में कि ये किस तरह turn around होगा आपकी company में। Thank you.

[Analyst 3]: [Foreign language].

Speaker #1: ٹھیک ہے۔ Thank you for that question. دیکھیں، پہلی بات تو یہ، as I mentioned, کہ آپ کی cash flows کی اگر بات کروں تو yes, you can see there is a strain in cash flows.

[Company Representative] (Engro Fertilizers): Thank you for that question. देखिए, पहली बात तो as I mentioned कि आपकी cash flows की अगर बात करूं तो yes, you can see there is a strain in cash flow, and I am sure जो numbers आप quote कर रहे हो वो सही हैं। As I said, if you look at the entire year which we see ending in December 2026, you should see things getting normalized in terms of the company performance. Which also takes care of the market share on an annual basis. Yes, month on month, quarter on quarter, half yearly basis पर देखेंगे, you see a dent in our market share and everything. Towards the end of the year as I mentioned and again I repeat, if there is a market which is around 6.5 billion tons, which does mean the local production will get sold off.

Imran Ahmed: Thank you for that question. [Foreign language]. As I said, if you look at the entire year which we see ending in December 2026, you should see things getting normalized in terms of the company performance. Which also takes care of the market share on an annual basis. Yes, month on month, quarter on quarter, half [Foreign language], you see a dent in our market share and everything. Towards the end of the year as I mentioned and again I repeat, if there is a market which is around 6.5 billion tons, which does mean the local production will get sold off, right?

Speaker #1: And I'm sure جب جب numbers جب quote کر رہے ہیں، وہ صحیح ہیں۔ لیکن دیکھیں، as I said کہ if you look at, if you look at the entire year which we which we see ending in December 2026.

Speaker #1: You should see things getting normalized in terms of the company’s performance, right? Which also takes care of the market share on an annual basis.

Speaker #1: Yes, month on month, quarter on quarter, half year on half year basis میں دیکھیں گے تو you see a dent in our, in our, in our market share and everything.

Speaker #1: But towards the end of the year, as I mentioned, and again I repeat کہ if there is a market which is around six and a half billion tons, so which does mean the local production will get sold off, right?

Speaker #1: So, جو آپ کے سارے سوال ہیں, that should be resolved and answered by the end of the year. That's one thing. دوسری بات آپ نے کہی, yes, the dividend has been lower.

[Company Representative] (Engro Fertilizers): जो आपके सारे सवाल हैं, that should be resolved and answered by the end of the year. That's one thing. दूसरी बात आपने कही yes, the dividend has been low. As I mentioned, we have inventory accumulated our end. The value is currently as we speak stored in the inventory we have and which will get Inshallah depleted by towards the end of the year. तो देखिए, अब मैं आप लोगों को as जो आप लोग सब बैठे हैं उनको यह समझाना ही चाह रहा हूँ कि understand, look it from this particular side. Yes, you can see the market, आपका share price low है everything because, yes, the dividends have been lower. If you look it from a very single lens, the dividend has been lower, the profitability has been lower.

Imran Ahmed: [Foreign language].

Speaker #1: But as I mentioned, we have inventory accumulated at our end. So the value is currently, as we speak, stored in the inventory we have, and which will get, Insha’Allah, depleted by towards the end of the year.

Speaker #1: So دیکھیں، یہ اور میں آپ کو، آپ لوگوں کو as جو آپ، جو سب بیٹھے ہوئے ہیں، کوئی سمجھانا نہیں چاہ رہا ہوں کہ دیکھیں, understand, look at, look at this from this particular side.

Speaker #1: Yes, you can see the market. آپ کہہ رہے ہیں share price low ہے, everything, because yes, the dividends have been lower. If you look at it from a very single lens, the dividend has been lower.

Speaker #1: The profitability has been lower. I completely agree. اس میں کوئی دو رائے نہیں ہے۔ Numbers ہیں۔ But if you look at it from the angle I'm talking about, you will understand and appreciate the fact that there is so much value in the organization, which people need to understand.

[Company Representative] (Engro Fertilizers): I completely agree इसमें कोई दो राय नहीं है, numbers हैं। If you look at it from the angle which I am talking about, you will understand and appreciate the fact there is so much value in the organization which people need to understand. People like yourself will help people understand and realize this reality where we are. It is clear that there is inventory with us. It is clear we have low profitability in H1 of the year. It is also clear that there is a market which we see coming in the next 6 months, you understand, and which will require urea and we have that supply available to serve that market. जी, Ahmad Shakoor.

Imran Ahmed: I completely agree [Foreign language]. If you look at it from the angle which I am talking about, you will understand and appreciate the fact there is so much value in the organization which people need to understand. People like yourself will help people understand and realize this reality where we are. It is clear that there is inventory with us. It is clear we have low profitability in H1 of the year. It is also clear that there is a market which we see coming in the next 6 months, you understand, and which will require urea and we have that supply available to serve that market. जी, Ahmad Shakoor.

Speaker #1: Right? And you people like yourselves will help people understand, realize this, this reality, the way we are. So it is clear that there is, there is inventory with us.

Speaker #1: It is clear we have low profitability in the second half of the first half of the year. But it's also clear that there is a market which we see coming in the next six months.

Speaker #1: You understand? And which will require urea—and we have that supply available to serve that market. جی عبدالشکور.

Speaker #4: آہ جی، السلام علیکم سر۔ Am I audible to you?

Ahmad Shakoor: Good morning, sir. Am I audible to you?

Ahmad Shakoor: Good morning, sir. Am I audible to you?

Speaker #1: Ji ji, I can hear you.

[Company Representative] (Engro Fertilizers): जी, I can hear you.

Imran Ahmed: [Foreign language], I can hear you.

Speaker #4: Right. sir, I'm an investor, in effort since 2019. So I have been following its progress quite for a long time, as I say. But سر، جہاں تک مجھے اندازہ ہو رہا ہے، جو گیس کی جو، آہ، آہ، پرائسز ہیں، جو ڈسپیریٹی بن رہی ہے، اس کی وجہ سے گریجولی from that moment onwards, it has been on a decline side.

Ahmad Shakoor: Right. Sir, I'm an investor in EFERT since 2019, so I have been following its progress quite for a long time, as I say. Sir, जहाँ तक मुझे अंदाजा हो रहा है, gas की जो prices हैं, जो disparity बन रही है, उसकी वजह से gradually from that moment onwards it has been on a decline side. तो sir, आपके government के साथ क्या talks चल रहे हैं? Do you see any progress? Either should it be a uniformity across all the team players, जितने भी आपके peer groups हैं, or is it कि EFERT को आगे जाकर कोई concessionary subsidized gas prices उनको मिल सकती हैं। Because as far as I understand, जो gas pressure enhancement की facility जो project है it just ensures the pressure.

Ahmad Shakoor: Right. Sir, I'm an investor in EFERT since 2019, so I have been following its progress quite for a long time, as I say. [Foreign language].

Speaker #4: تو سر، آپ کے گورنمنٹ کے ساتھ کیا ٹاکس چل رہے ہیں؟ Is, do you see any progress? Either, should it be, is it uniformity across all the team players?

Speaker #4: جتنے بھی آپ کے پیئر گروپس ہیں، اور is it کہ ایفرٹ کو جو ہے آگے جا کے کوئی کنسیشنری ایک سبسیڈائزڈ ایک گیس پرائسز ان کو مل سکتی ہیں؟ Because as of as far as I understand, جو گیس پریشر انہینسمنٹ کی فیسلیٹی جو ہے، جو پروجیکٹ ہے، it just ensures the pressure, but it doesn't, confirm کہ وہ آپ کو، آہ، سستی گیس ملے گی یا آپ کو اس سے زیادہ کی مہنگی گیس ملے گی۔ And as I have read somewhere کہ 2027 کے مارچ تک آپ کے جو ایس این جی پی ایل کے جو کنٹریکٹس ہیں، آہ، that too would get expired.

Ahmad Shakoor: It doesn't confirm कि आपको सस्ती gas मिलेगी या आपको इससे ज्यादा की महंगी gas मिलेगी। As I have read somewhere कि 2027 के March तक आपके जो SNGPL के contracts हैं that too would get expired and आपको renegotiate करना होगा। What's your outlook on that one? क्योंकि I think primarily gas is the main component of urea production and जब तक वो चीजें sort नहीं होंगी तो आपके expenditure cost और सारी चीजें increase होती जाएंगी। तो I just wanted your view. What's the company doing regarding those specific matters? Thank you.

Speaker #4: And آپ کو ری نیگوشیٹ کرنا ہوگا۔ So what's your outlook on that one? کیونکہ I think primarily gas is the main component of یوریا پروڈکشن۔ And جب تک وہ چیزیں sort نہیں ہوں گی، تو آپ کے expenditure cost اور ساری چیزیں increase ہوتی جائیں گی۔ So I just wanted your view, what's the company doing regarding those specific matters?

Ahmad Shakoor: [Foreign language]. I just wanted your view. What's the company doing regarding those specific matters? Thank you.

Speaker #4: Thank you.

Speaker #1: ٹھیک ہے، تو thank you, عبدالشکور صاحب۔ First of all, for—as Dr. mentioned—you have been investors since 2019. So, thank you for that confidence.

[Company Representative] (Engro Fertilizers): ठीक है। Thank you, Ahmad Shakoor साहब। First of all as you have mentioned you have been an investor since 2019, thank you for that confidence and I would request you keep that confidence also on us. As I mentioned just before आपसे बात करते हुए पहले, it has been a H1 which has been lower in profit. That does not mean that it will stay that way in the time to come. देखिए, जहाँ तक gas cost की अपनी बात की yes, it is the main raw material. It is definitely a major contributor toward any bottom line of any organization. Rest assured, this is one of the areas which is on our top priority. We are working, we are talking with multiple stakeholders at multiple levels to see how we can improve this and create better returns for our shareholders.

Imran Ahmed: [Foreign language], it is the main raw material. It is definitely a major contributor toward any bottom line of any organization. Rest assured, this is one of the areas which is on our top priority. We are working, we are talking with multiple stakeholders at multiple levels to see how we can improve this and create better returns for our shareholders.

Speaker #1: And, and I would, request کہ you keep that confidence also, on us. as I said, as I mentioned just before, this آپ سے بات کرنے سے پہلے it has, it, it has been a half year which has been lower in profit.

Speaker #1: But that does not mean that, we it, it will stay that, that way in, in a time to come. دیکھیں، جہاں تک گیس cost کی آپ نے بات کی، yes, there are, it is, it is the main raw material.

Speaker #1: It is definitely a major contributor toward any bottom line of any organization. So, rest assured, this is one of the areas which is a top priority for us.

Speaker #1: We, our working— we are talking with multiple stakeholders, at multiple levels, to see how we can improve this and create better returns for our shareholders.

Speaker #1: You're right, there's also، آپ نے mention کیا ہے کہ SNGPL کے contracts ہیں، expire ہو رہا ہے، وہ mature ہو گا next year, yes.

[Company Representative] (Engro Fertilizers): You are right, there's also, आपने ऐसा mention किया कि SNGPL का contract expire होगा, वह mature होगा next year. Yes, maturity होगी।There will be discussions around it also. There are multiple things happening, including what you've mentioned. As I mentioned, rest assured, this is one area which is definitely on our top priority and we continue to work on this. और आपको यह पता होगा जैसे कि FM pack जो proposal approve हुआ था recently, early part of this year. Engro Fertilizers का एक जो बड़ा challenge था कि हमारी एक plant की allocated gas नहीं थी। I am sure आपको idea होगा उसके बारे में। For many years that gas got allocated after maybe eight to 10 years. Right? Which shows that there is complete focus of the organization management to resolve our gas challenges. We will take maybe baby steps.

Imran Ahmed: You are right, there's also, [Foreign language]. For many years that gas got allocated after maybe eight to 10 years. Right? Which shows that there is complete focus of the organization management to resolve our gas challenges. We will take maybe baby steps.

Speaker #1: So yes, maturity ہوگی۔ There'll be discussions around it also. So there are multiple things happening, including what you've mentioned. And as I mentioned, rest assured, this is one area which is definitely on our top priority.

Speaker #1: And, and, and we will, we continue to work on this. اور آپ کو یہ پتہ ہوگا، جیسے کہ ایف ایم پیک کے جو proposal approve ہوا تھا، ابھی recently, early part of this year.

Speaker #1: So, Engro Fertilizers کا ایک بڑا challenge یہ تھا کہ ہماری ایک plant کی allocated gas نہیں تھی۔ I'm sure آپ کو idea ہوگا اس کے بارے میں۔ For many years, that gas got allocated after maybe eight, ten years, right?

Speaker #1: So, which shows that there is complete focus of the organization management to resolve our gas challenges. But we, we will, we will, we will take maybe, maybe steps.

Speaker #1: We are taking and making, moving step by step, and inshallah, don't worry. We are working on this, and we'll see whatever we can do for the benefit of our shareholders.

[Company Representative] (Engro Fertilizers): We are moving step by step. Inshallah, don't worry, we are working on this and see whatever we can do for the benefit of our shareholders. जी। Is there any other question from Topline again? आपका hand raised है।

Imran Ahmed: We are moving step by step. Inshallah, don't worry, we are working on this and see whatever we can do for the benefit of our shareholders.

Speaker #1: جی، آہ، is there any other question from top line again? آپ کا ہینڈ ریزڈ ہے یا آپ نے؟

Abdullah Kothawala: Is there any other question from Topline again?

Imran Ahmed: [Foreign language].

Speaker #2: جی جی سر، just a follow-up question. So, آپ نے کہا کہ جو ابھی، آہ، جو new، آہ، پروجیکٹ ہے، $200 million کا، غزی جو شوال کا، اس میں Engro Fertilizer part نہیں ہے۔ So جو ہماری understanding تھی، وہ یہ تھی کہ کیونکہ آپ کے جو swing volumes ہیں، وہ permanent volumes میں convert ہو رہے ہیں، اور وہ جو allocation ہوگی base plant کو، وہ غزی جو شوال سے ہوگی۔ تو اس کے لیے، آہ، just, just for the clarity, just want to confirm it again.

Shankar Talreja: जी sir, just a follow-up question. आपने कहा कि जो अभी new project है $200 million का, Ghazij जो Shawal का, उसमें Engro Fertilizers part नहीं है. जो हमारी understanding थी वह यह थी कि क्योंकि आपके जो swing volumes हैं वह permanent volumes में convert हो रहे हैं और वह जो allocation होगी base plant को, वह Ghazij और Shawal से होगी। तो उसके लिए just for the clarity, just want to confirm it again कि I got it right कि उसमें आपका role नहीं है कोई CapEx में। या manufacturers का नहीं है या Mari वाले खुद उसका CapEx bear करेंगे।

Shankar Talreja: [Foreign language].

Speaker #2: کیا I heard it right کہ اس میں آپ کا role نہیں ہے، کوئی capex میں؟

Speaker #1: دیکھیں جی، manufacturers کا نہیں ہے یا ہم والے خود اس کا capex bear کریں گے؟ نہیں، میں وہ clear کر دوں۔ دیکھیں، جو غزی ہے، یہ وہ reservoir ہے جس پہ eventually fertilizer players جائیں گے۔ Because آپ کو پتہ ہے، HRL سے ابھی گیس ملتی ہے major players کو، including us and other players.

[Company Representative] (Engro Fertilizers): मैं वह clear कर दूं। जो Ghazij है, यह वह reservoir है जिस पर eventually fertilizer players will go. आपको पता है HRL से भी gas मिलती है major players को, including us and other players. That is a depleting reservoir, जिस पर हमने pressure enhancement facility का काम करके उसकी gas हम extract करें. Once that particular reservoir starts to deplete under the FM pack proposal जो approval अभी की है government ने, जो Ghazij reservoir है वह allocate कर दिया गया है for the fertilizer industry. Once you see declining pressures, decline in gas in the HRL, people will start moving to Ghazij. That's the game plan. We will also be part of Ghazij once curtailment starts in HRL.

Imran Ahmed: [Foreign langauge]. Once you see declining pressures, decline in gas in the HRL, people will start moving to Ghazij. That's the game plan. We will also be part of Ghazij once curtailment starts in HRL.

Speaker #1: اور so that is a depleting reservoir جس پہ ہم نے pressure enhancement facility کا کام کر کے اس کی گیس ہم extract کریں۔ But once that particular reservoir starts to deplete, under the FM PAC proposal, the approval ابھی کی ہے government نے، جو غزی reservoir ہے، وہ allocate کر دیا گیا ہے for the fertilizer industry.

Speaker #1: So once you see declining pressures and a decline in gas in the HRL, people will start moving to Ghazi. That's the game plan. ٹھیک ہے؟ So we will also be part of Ghazi in the, in the month, once depletion starts in HRL.

Speaker #1: لیکن جب یہ proposal approve ہوا تھا تو there were a couple of plants, not ours, but the other players, which required gas. تو ان کی allocation یہ کہا گیا تھا کہ آپ تو پہلے ہی غازی پہ چلے جائیں۔ تو جب وہ غازی پہ پہلے جا رہے ہیں تو وہاں پہ جانے کے ساتھ ایک investment requirement ہے، جو وہ لوگ مل کے کر رہے ہیں۔ As a first step, to start getting gas from there, from غازی۔ So ابھی ہم غازی پہ نہیں ہیں۔ When eventually fertilizer industry will move on to غازی, that's part of the plan.

[Company Representative] (Engro Fertilizers): जब यह proposal approve हुआ था तब there were a couple of plants, not ours, but of the other players which required gas. उनकी allocation यह कहा गया था कि आप तो पहले ही Ghazij पर चले जाइए. जब वह Ghazij पर पहले जा रहे हैं तो वहां पर जाने के साथ एक investment requirement है जो वो लोग मिलकर कर रहे हैं as a first step to start getting gas from Ghazij. अभी हम Ghazij पर नहीं हैं. Eventually fertilizer industry will move on to Ghazij. That's part of the plan. I hope that clarifies. जी, Zainab Khan.

Imran Ahmed: [Foreign language].

Speaker #1: I hope that clarifies. جی، آہ، زینب خان.

Speaker #3: I have one more question. First of all, I forgot to introduce myself. I am Zainab Saleem from PECRA. I wanted to ask you about your diversification plans.

Zainab Saleem: I have one more question. First of all, I forgot to introduce myself. I am Zainab Saleem from PACRA. I wanted to ask you about your diversification plans. As we can see, FFC has its established Sona Centers and recently they have introduced a nutrient under a project named Yara for fruit enhancement. I just want to ask you what are your plans for your diversification as we can see current risk with the gas supply issues and all.

Zainab Saleem: I have one more question. First of all, I forgot to introduce myself. I am Zainab Saleem from PACRA. I wanted to ask you about your diversification plans. As we can see, FFC has its established Sona Centers and recently they have introduced a nutrient under a project named Yara for fruit enhancement. I just want to ask you what are your plans for your diversification as we can see current risk with the gas supply issues and all.

Speaker #3: As we can see, FSC has its established owner centers, and recently they have introduced a nutrient under a project named Yara for fruit enhancement.

Speaker #3: So, I just want to ask you: What are your plans for your diversification? As you can see, the current risk with the gas supply shows and all.

Speaker #1: دیکھیں، diversification پہ بات کریں۔ جیسے آپ نے، آہ، آپ نے FFC کی example دی، تو ان کے جو سونا سینٹرز ہیں، وہ diversification سے زیادہ ایک B2C ماڈل ہے، جہاں پہ آپ یوریا اپنی پروڈکٹس سیل کرتے ہیں۔ We have a similar platform at all جو میں نے شو کیا تھا، مرکز، آہ، they have—definitely the scale is different.

[Company Representative] (Engro Fertilizers): diversification पर बात करें, जैसे आपने FFC की example दी. उनके जो Sona Centers हैं वह diversification से ज्यादा एक B2C model है जहां पर आप urea empty products sell करते हैं. We have a similar platform at Engro which मैंने show किया था Markaz. Definitely the scale is different. I think the other players have a larger scale. We will be ramping up gradually. हमारा scale small है but there's a gradual ramp up at Engro. That's the same model which industry is following, which is a B2C model. From that side I think there's no difference. Yes, I think as we talk about diversification सब के पास different products हैं, different ranges हैं. कोई productions पर काम कर रहे हैं, कोई imports पर करते हैं. There are different sort of products everybody deals with.

Imran Ahmed: [Foreign language].

Speaker #1: I think the other players have a larger scale. Well, we're ramping up gradually, so ہمارا scale وہاں نہیں ہے, but we're gradually ramping up at our end.

Speaker #1: And that's the same model which the industry is following, which is a B2C model. So that's also—so from that side, I think there's no difference.

Speaker #1: But yes, I think there are—as we talk about diversification—تو دیکھیں، diversification سب کے پاس different products ہیں، different ranges ہیں۔ آہ، کوئی production پہ کام کر رہے ہیں، کوئی imports پہ کرتے ہیں، so there are different sort of products which everybody deals with.

Speaker #1: So, so there, as, as, as they have their, their plans, they have their own initiatives, their own, وہ collaborations وہ لوگ کر رہے ہیں۔ We are working on our part on different areas also.

[Company Representative] (Engro Fertilizers): They have their plans, they have their own initiatives, their own collaboration वो लोग कर रहे हैं। We are working on our part on different areas also. As I mentioned also earlier, as an organization we keep on working on multiple fronts and when the right time comes, we will definitely let the market know of what we're doing and what sort of initiatives or collaborations or areas we're looking into. जी, Zaid साहब। Zaid, आपके पास कोई question है? आपका यह raised hand

Imran Ahmed: They have their plans, they have their own initiatives, their own collaboration [Foreign language]. We are working on our part on different areas also. As I mentioned also earlier, as an organization we keep on working on multiple fronts and when the right time comes, we will definitely let the market know of what we're doing and what sort of initiatives or collaborations or areas we're looking into. [Foreign language].

Speaker #1: As I mentioned also earlier, as an organization, we keep on working on multiple fronts. And when the right time comes, we will definitely let the market know what we're doing, and what sort of initiatives or collaborations, or areas we're looking into.

Speaker #1: جی، زیب صاحب۔ زیب، آپ کے پاس کوئی question ہے؟ آپ کا یہ phrase جو hand...

Speaker #2: Ji, I do have one last question, and this is just for clarity. So regarding the engine plant, I believe the last time you had disclosed in the previous CBS was that the engine is currently getting allocated 70% from PB-12 and 30% from MARI.

[Analyst]: Gee, I do have one last question, and this is just clarity. Regarding the Engro plant, I believe the last time you had disclosed in the previous CBS is that the Engro is currently getting allocated 70% from PP12 and then 30% from Mari. I just wanted to just confirm, is that still the case or has the allocation shifted a little bit? Just that small little clarification, and then that should be it from my part. Thank you very much.

[Analyst 1]: Gee, I do have one last question, and this is just clarity. Regarding the Engro plant, I believe the last time you had disclosed in the previous CBS is that the Engro is currently getting allocated 70% from PP12 and then 30% from Mari. I just wanted to just confirm, is that still the case or has the allocation shifted a little bit? Just that small little clarification, and then that should be it from my part. Thank you very much.

Speaker #2: So I just wanted to confirm—is that still the case, or has the allocation shifted a little bit? Just that small clarification, and then that should be it from my side.

Speaker #2: Thank you very much.

Speaker #1: No, that was not for the Engine Plant; that was for the Base Plant.

[Company Representative] (Engro Fertilizers): No, that was not for Engro plant, that was for the base plant.

Imran Ahmed: No, that was not for Engro plant, that was for the base plant.

Speaker #2: Sorry, base, base.

[Analyst]: Sorry. Base.

[Analyst 1]: Sorry. Base.

Speaker #1: Yeah, sorry. So the entire gas we are getting, it is from MARI.

[Company Representative] (Engro Fertilizers): Yes.

Imran Ahmed: Yes.

[Analyst]: Sorry. Yeah.

[Analyst 1]: Sorry. Yeah.

[Company Representative] (Engro Fertilizers): The entire gas we are getting, it is from Mari.

Imran Ahmed: The entire gas we are getting, it is from Mari. There's certain component which we get at a lower price than pro rata policy, which is on 30%, which you mentioned. That's right.

Speaker #2: Mm-hmm.

Speaker #1: But the certain component which we get at a lower price than the protein policy—we're on 30%, which you mentioned. That's right.

[Company Representative] (Engro Fertilizers): There's certain component which we get at a lower price than pro rata policy, which is on 30%, which you mentioned. That's right.

Speaker #2: It's still the same?

[Analyst]: It's still the same?

[Analyst 1]: It's still the same?

Speaker #1: Yeah.

Speaker #2: ٹھیک ہے. Perfect. Thank you so much, and best of luck for your future.

[Company Representative] (Engro Fertilizers): Yeah.

Imran Ahmed: Yeah.

[Analyst]: See. Perfect. Thank you so much. Best of luck for the future.

[Analyst 1]: See. Perfect. Thank you so much. Best of luck for the future.

Speaker #1: So, is there any other question from anyone? I think we've responded to most of them. Any final questions? Perfect. So, thank you everyone for joining, and I think we'll end here.

[Company Representative] (Engro Fertilizers): Is there any other question from anyone? I think we've responded to most of them. Any final questions? Perfect. Thank you everyone for joining. I think we'll end here. Thank you all for your trust and your time. We'll be happy to answer any further questions you have. For now, Inshallah, we'll see you soon with our Q3 numbers. Thank you. Gracias.

Abdullah Kothawala: Is there any other question from anyone? I think we've responded to most of them. Any final questions? Perfect. Thank you everyone for joining. I think we'll end here. Thank you all for your trust and your time. We'll be happy to answer any further questions you have. For now, Inshallah, we'll see you soon with our Q3 numbers. Thank you. Gracias.

Speaker #1: So, thank you all for your trust and your time, and we'll be happy to answer any further questions you have.

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