FFC also declared a final cash dividend of Rs3.4 per share, taking total dividend in 2015 at Rs11.9 per share. PHOTO: ffc.com.pk
KARACHI: Fauji Fertilizer Company (FFC) on Wednesday announced a consolidated net profit of Rs19.4 billion in the year ended on December 31, 2015, down 44% compared to Rs34.6 billion in the previous year, according to a company notice to Pakistan Stock Exchange (PSX).
Earnings per share (EPS) also reduced to Rs15.27 from an EPS of Rs27.23 in the period under review. FFC also declared a final cash dividend of Rs3.4 per share, taking total dividend in 2015 at Rs11.9 per share.
PSX added just 27 points on Wednesday and closed at 31,101 points while the FFC share price closed at Rs110.7, down 3.6% from the last closing date price. In the fourth quarter of calendar year 2015 (4Q2015), unconsolidated earnings of Rs4.8 billion (EPS Rs3.8) was recorded versus Rs5.2 billion (EPS Rs4.1) in the same quarter of calendar year 2014.
“The result was above street consensus,” Topline Securities commented on Wednesday.
The report added that further fall in international urea prices, more than expected change in feed/fuel gas prices, any unexpected change in Gas Infrastructure Development Cess (GIDC) and ability of the company to pass on cost are major risk factors for FFC.
FFC’s revenue in 4QCY15 increased by 17% year-on-year (YoY) to Rs30.5 billion owing to 21% YoY uptick in urea sales on the back of Rs120 per bag discount offered by fertiliser companies. The cost of sales increased by 32% YoY to Rs22.3 billion in 4Q2015 mainly due to 63% YoY and 23% YoY hike in feed/fuel gas prices.
Published in The Express Tribune, January 28th, 2016.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.
COMMENTS
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ