FFC reports profit of Rs11.5b, down 4.3%

EPS amounts to Rs9.04 for 12-month period

KARACHI: Fauji Fertilizer Company (FFC) has posted a consolidated net profit of Rs11.5 billion for the year ended on December 31, 2017, down 4.3% compared with Rs12.02 billion in the previous year, according to a company notice sent to the Pakistan Stock Exchange (PSX).

Earnings per share (EPS) amounted to Rs9.04 compared with an EPS of Rs9.44 in 2016. The company announced a final cash dividend of Rs3 or 30% per share for the year, in addition to an interim dividend already paid at Rs4 or 40%.

FFC’s share price closed at Rs87.69, up 2.36% on Tuesday on a day the KSE-100 index closed at 44,233, down 224 points or 0.50%.

Sources said 22% higher sales in the outgoing year was due to urea export (which clocked in at 76,000 tons compared with no export last year), higher retention prices on urea (averaged around Rs1,294 per bag)  as inventory levels normalise and better diammonium phosphate (DAP) off-take which was up 12% to 176,000 tons.

Other expenses and financial charges in the fourth quarter of 2017 declined by 12% and 19% on year-on-year basis. Other income was down 44% in fourth quarter of 2017 mainly due to reduction of urea cash subsidy (Rs100 per bag compared with Rs156 per bag last year).

While pre-tax earnings were down 4% in the outgoing quarter, lower effective tax rate was down 3 percentage points to 27% which led to flat earnings.

Published in The Express Tribune, January 31^st, 2018.

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