FFC profit firms on high urea prices
Cheer for shareholders as final dividend declared and bonus shares proposed.
KARACHI:
Net profits of Fauji Fertiliser Company (FFC) have increased 25 per cent to Rs11 billion on the back of higher urea prices.
Healthy dividend income from Fauji Fertiliser Bin Qasim Limited (FFBL), a subsidiary of FFC, also contributed to the increase in profits, said JS Global Capital analyst Bilal Qamar.
The company also announced a final dividend of Rs3.5 per share, taking the full-year payout to Rs13 per share, according to a communique sent to the Karachi Stock Exchange on Thursday. The board of directors, in a meeting, also recommended bonus shares in the proportion of 25 shares for every 100 shares.
High urea prices boost revenues by 24%
FFC recorded revenues of Rs45 billion, a growth of 24 per cent on a yearly basis, primarily on the back of higher urea prices.
Urea prices rose in the wake of curtailment in gas supply to the fertiliser sector as manufacturers were forced to cut back production, said Qamar. Consequently, gross margins for the company improved by 100 basis points to 44 per cent in 2010.
Strong dividend support
Healthy dividend income from FFBL is expected to further support the bottom line of the company. Other income showed an increase of 12 per cent to Rs3.15 billion primarily attributable to the 33 per cent increase in dividend income from FFBL to Rs2.5 billion. FFC received a dividend of Rs5.3 per share from FFBL in 2010.
Distribution cost rises
Transportation cost for the company increased along with urea sales, said analysts. Resultantly, selling and distribution expenses rose 24 per cent to Rs3.94 billion.
Published in The Express Tribune, January 28th, 2011.
Net profits of Fauji Fertiliser Company (FFC) have increased 25 per cent to Rs11 billion on the back of higher urea prices.
Healthy dividend income from Fauji Fertiliser Bin Qasim Limited (FFBL), a subsidiary of FFC, also contributed to the increase in profits, said JS Global Capital analyst Bilal Qamar.
The company also announced a final dividend of Rs3.5 per share, taking the full-year payout to Rs13 per share, according to a communique sent to the Karachi Stock Exchange on Thursday. The board of directors, in a meeting, also recommended bonus shares in the proportion of 25 shares for every 100 shares.
High urea prices boost revenues by 24%
FFC recorded revenues of Rs45 billion, a growth of 24 per cent on a yearly basis, primarily on the back of higher urea prices.
Urea prices rose in the wake of curtailment in gas supply to the fertiliser sector as manufacturers were forced to cut back production, said Qamar. Consequently, gross margins for the company improved by 100 basis points to 44 per cent in 2010.
Strong dividend support
Healthy dividend income from FFBL is expected to further support the bottom line of the company. Other income showed an increase of 12 per cent to Rs3.15 billion primarily attributable to the 33 per cent increase in dividend income from FFBL to Rs2.5 billion. FFC received a dividend of Rs5.3 per share from FFBL in 2010.
Distribution cost rises
Transportation cost for the company increased along with urea sales, said analysts. Resultantly, selling and distribution expenses rose 24 per cent to Rs3.94 billion.
Published in The Express Tribune, January 28th, 2011.