Engro Corp

The General Manager
Karachi Stock Exchange (Guarantee) Limited
Stock Exchange Building
Stock Exchange Road
Karachi
FAX NO: 111-573-329

The Secretary
Lahore Stock Exchange (Guarantee) Limited
19, Khayabane-Aiwane Iqbal
Lahore
FAX NO: 042-111 441 441

The Secretary
Islamabad Stock Exchange (Guarantee) Limited
Stock Exchange Building
Blue Area
Islamabad
FAX NO: 051-473-329

FINANCIAL RESULTS FOR THE 1ST QUARTER ENDED MARCH 31, 2010
CONSOLIDATED AND STAND ALONE

Dear Sir,

The unaudited consolidated financial results of the Company for the First Quarter ended March 31, 2010 are as follows:

(Amounts in thousand except for earnings per share)

The stand alone financial results of the Company for the first quarter ended March 31, 2010 are as follows:

(Amounts in thousand except for earnings per share)

The Directors Review to the shareholders is also attached hereto.

Very truly yours

ANDALIB ALAVI
General Manager – Legal
& Company Secretary

Encl: as above.

FIRST QUARTER 2010 REVIEW FOR THE SHAREHOLDERS
ENGRO CORPORATION LIMITED (Formerly Engro Chemical Pakistan Limited)

On behalf of the Board of Directors of Engro Corporation Limited (formerly Engro Chemical Pakistan Limited), we are pleased to present the un-audited group consolidated accounts for the three months ended March 31, 2010.

Overview of 1Q 2010
Our consolidated revenue recorded an increase of 45% and stood at Rs 16.9 billion for the first quarter 2010, as compared to Rs 11.6 billion in the same period last year, while net profit (attributable to equity holders of the holding company,) increased from Rs 684 million in 1Q 2009 to Rs 1,889 million this quarter.

As announced in our 2009 Annual Report, the fertilizer business was demerged effective January 01, 2010 and transferred to a wholly owned subsidiary, Engro Fertlizers Limited, which was incorporated in June 2009 for this purpose. Following this demerger, Engro Corporation assumed the role of a holding company managing the affairs of the various businesses.

Business review

Fertilizers
Urea sales were 252,000 tons, up by 7% for the same period last year primarily due to higher availability of product on account of higher production. Our plant produced 257,000 tons during the three months ended March 31, 2010 which is the best ever for any quarter against 240,000 tons during the same period last year. This combined with lower imports resulted in our market share increasing to 18% vs 15% last year. Total urea market demand was 1.5 million tons, a decrease of 3% vs. 1.55 million tons in the same period last year. The sale of company manufactured blended fertilizers (Zarkhez and Engro NP) was 21,300 tons vs. 20,000 tons during same period last year.

The net profit for the three months ended March 31, 2010 was Rs 773 million.

The urea expansion project at Daharki site, at 37th month of execution, is progressing satisfactorily.

Engro Eximp imported 120,000 tons of phosphatic fertilizer and sold 78,000 tons. Net Profit for the company was Rs 897 million vs. a Rs 73 million loss in the same period last year.

Energy and Power
During the quarter, a major milestone in our energy segment was the commencement of commercial production of our first ever power project at Qadirpur, which began commercial operations on March 27, 2010. The initial dependable capacity was 217.3 MW and the plant has been smoothly dispatching power to the national grid since March 19, 2010.

The feasibility report for the Thar Coal mining project is underway and expected to be completed by third quarter 2010.

Engro Energy declared a net profit of Rs 44.2 million during the period vs. a net loss of Rs 9.6 million during the same period last year, whileEngro Powergen declared a net profit of Rs 2.8 million during the first quarter of 2010 vs. a net loss of Rs 5.9 million during the same period last year.

Foods
Engro Foods had a turnover of Rs 4.8 billion during the first quarter of 2010 compared with Rs 3.2 billion for the corresponding period last year, an increase of 48%. UHT sales were up by 31% vs. the same period last year. Omorè continued its expansion across 57 towns across Punjab and NWFP. The dairy farm at Nara at present has 1,344 milking cows and the second breeding cycle is underway with calving expected to start from August onwards. The quarter also witnessed the successful launch of Tarang Powder.

The net loss for the three months ended March 31, 2010 was Rs 11 million as compared to a profit of 13 million for the same period last year.

Petrochemicals
The domestic PVC sales for the first quarter of 2010 were 22,000 tons as compared to a record sale of 38,000 tons during the same period last year. While domestic demand remained strong, decline in sales was due to production constraints. Caustic soda production during the quarter was 19,000 tons. Domestic demand for caustic soda also remained strong and the Company sold 16,000 tons. A total of 19,000 tons of EDC was produced in 1Q 2010 of which14,000 tons were exported. Surplus power of 7MW (average) was sold to Karachi Electric Supply Company (KESC) during the quarter. Engro Polymer incurred a loss after tax of Rs 154m during the quarter as compared to a loss after tax of Rs. 69m in 1Q09. Primary reason for the loss was delay in VCM plant startup which resulted in lower PVC-VCM margin.

Others
In the industrial automation sector, Avanceon Limited posted a consolidated loss of Rs 64 million vs. a loss of Rs 81 million during the same period last year.

In the chemical storage and terminal business, Engro Vopak Terminal Limited, a 50% joint venture, posted a net profit of Rs 264 million (our share being Rs 132 million) vs. a profit Rs 182 million (our share being Rs 91 million) in the same period last year.

Near Term Outlook
In the fertilizer segment, urea and phosphate demand is expected to remain firm. However based on recent verbal communications, the Government is seriously considering gas curtailment, for a few weeks, of 15-20% to the fertilizer plants being supplied gas from the Mari field, though the scheme has not been finalized and formally communicated to us. Gas curtailment on the fertilizer plants located on the Sui networks has already started.

In the backdrop of the ongoing energy crisis faced by the country, our power plant is expected to continue dispatching power at full capacity.

In the foods segment, growth is expected to remain strong and performance should be as per expectations.

Engro Polymer is focused to achieve commercial production of VCM plant during 2Q 2010, till such time PVC production will continue to be based on imported VCM due to which margins will remain under pressure.

Karachi
April 28, 2010