KARACHI: Fauji Fertilizer Company Limited (FFC) has announced a profit of Rs11.78 billion in the year ended December 31, 2016, down 30% compared with Rs16.76 billion in the same period last year, according to a company notice sent to the Pakistan Stock Exchange (PSX).
Earnings per share (EPS) dropped to Rs9.26 from an EPS of Rs13.18 in the period under review.
Along with the results, the company announced a final cash dividend of Rs2.75 per share, taking cumulative dividend for the year to Rs7.90 per share.
On a sequential basis, the company posted a 64% quarter-on-quarter jump in profitability primarily on account of a 32% quarter-on-quarter jump in urea off-take.
The company share closed at Rs115.8, up 0.8% with the KSE-100 index ending at 48,757, down 214 points or 0.44%.
Total sales declined by 14% year-on-year to Rs73 billion during the period, attributable predominantly to lower urea prices amid announcement of the subsidy package in FY16-17 budget.
Gross margins clocked in at 25% in calendar year 2016 (down 9 percentage points year-on-year), mainly due to subsidised urea prices along with discounts offered by the company to clear inventory.
Financial charges expanded massively by 63% year-on-year to Rs2.4 billion, owed to augmented borrowings.
While a 72% surge in other income was aided primarily by cash subsidy on urea and Di-ammonium Phosphate (DAP) under this head.
The company booked effective tax rate of 32% in calendar year 2016.
Published in The Express Tribune, February 1st, 2017.
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