Fauji Fertiliser profit jumps 62%

Net profit of Fauji Fertiliser Bin Qasim jumps 62 per cent to Rs2.93 billion for the first nine months of 2010.

KARACHI: Net profit of Fauji Fertiliser Bin Qasim (FFBL) jumped 62 per cent to Rs2.93 billion for the first nine months of 2010, much higher than market expectations. Research firms expected it to be in the vicinity of Rs2.5 billion.

The company also declared a dividend of Rs1.25 per share which took the year’s payout to Rs3.05 per share, according to a notice sent to the Karachi Stock Exchange on Thursday.

With floods ravaging through the country during July to September, it was not surprising to see fertiliser manufacturers struggling with sales, said BMA Capital analyst Omar Rafiq.

Net sales of the company fell 17 per cent to Rs22 billion in the nine months of 2010 against last year’s Rs27 billion.

Di-ammonium phosphate (DAP) sales for FFBL are expected to be at a low 102,000 tons against last year’s astounding 259,000 tons, said Rafiq. Low sales during the third quarter should not be alarming for investors since over 50 per cent of the sales normally take place during the last three months of the calendar year, added Rafiq.

Published in The Express Tribune, October 22^nd, 2010.