KARACHI:
Fauji Fertilizer Company’s net profit almost doubled to Rs13.8 billion in the first nine months of 2011 as higher prices acted as a major factor.
Urea sales increased by 12.5% to 1.8 million tons despite ongoing gas curtailment, but higher margins on urea – 57% against last year’s 45% – remained the major earnings driver for the company, said Topline Securities analyst Farhan Mahmood.
The board of directors in a meeting held in Mexico City also declared a third interim cash dividend of Rs5.5, taking the total payout to Rs14.75 per ordinary share of Rs10 in 2011.
Besides this, other income jumping 96% to Rs4.4 billion amid improved dividend from subsidiary Fauji Fertiliser Bin Qasim also contributed to the bottom-line growth, added Mahmood. Finance cost decreased by 37% to Rs1.9 billion in the period under review against Rs3 billion in the same period last year.
The fertiliser manufacturer’s stock price rose 5%, its upper limit for the day, to close at Rs193.41 during trade at the Karachi Stock Exchange on Monday.
Alone in the third quarter, the company’s profit grew 195% to post earnings per share of Rs6.7 as last year sales were affected by floods.
Published in The Express Tribune, November 1st, 2011.
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@Adnan: FF claims to be a welfare organization. When its BoD spend money to have meetings in Mexico City that betrays that aim. Previously BoD meetings were held in LA and Venice. Last time I checked the BoD werent Italian, Mexican or American.
@Nadir: whats issue with Mexici.
Yep, the Fauj is profitable...and why Mexico City?