Earnings per share (EPS) remained at Rs4.30 against Rs6.21 in calendar year 2013. CREATIVE COMMONS
Fauji Fertilizer Bin Qasim (FFBL) on Friday announced net earnings of Rs4.02 billion for the year ended December 2014, down 31% year-on-year (YoY) compared to Rs5.8 billion in the previous calendar year.
Earnings per share (EPS) remained at Rs4.30 against Rs6.21 in calendar year 2013.
“The earnings announcement was slightly above our estimates on the back of better-than-expected ‘other income’ at Rs1.06 billion, which was up 56% YoY,” said JS Research in its report.
The company also announced a final cash dividend of Rs2.25 per share, beating the expectations of Rs2 per share, the report added. This takes full-year payout to Rs4 per share.
In the fourth quarter alone, earnings clocked up Rs2.4 per share, a decline of 10% YoY.
The company’s gross margin fell to 22.4% during 2014 versus 26.6% in the previous year as it was unable to fully pass on the Rs100 per million British thermal units (mmbtu) rise in the Gas Infrastructure Development Cess (GIDC) on both feed and fuel gas in 2014.
Moreover, higher gas curtailment owing to gas shortage led to a 5-6% lower production of both urea and di-ammonium phosphate (DAP). Accordingly, urea sales remained lower by 6% to 0.21 million tons while DAP sales fell by 8% to 0.71 million tons during the year.
The company further invested Rs1.2 billion in Fauji Meat Limited, which will process and export meat with total project cost estimated at around Rs6.4 billion.
Moreover, further investment of Rs1.4 billion was also made during 2014 in FFBL Power Company, which is in the process of setting up a 118-megawatt power project.
Fauji Fertilizer Company
It announced earnings of Rs18.2 billion and EPS of Rs14.3 in 2014, down 10% compared to Rs20.1 billion (EPS Rs15.8) last year.
According to Topline Securities, the result was accompanied with a final cash dividend of Rs3.5 per share, taking total payout to Rs13.7 per share in 2014 compared to Rs15.4 in 2013.
Published in The Express Tribune, January 31st, 2015.
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A drop in YtoY profits; Is this public sector company up for grab by the near and dear ones.
A Peshawary.