Fauji Fertilizer Company Limited (FFC) has announced a profit of Rs. 10.71 billion for the year ending on December 31 2017, down 9.08% compared with Rs. 11.78 billion earned during the same period last year, according to a company notice sent to the Pakistan Stock Exchange (PSX).
Despite a marked reduction in company’s expenses the fertilizer giant saw a drop in profits.
Earnings per share (EPS) dropped to Rs. 8.42 from an EPS of Rs. 9.26 in the period under review.
Along with the results, the company announced a final cash dividend of Rs. 3.00 per share, brining the cumulative dividend for the year to Rs. 4.00 per share.
Total sales increased by 24.48% year-on-year to Rs. 90.71 billion during the period, as compared to Rs. 72 billion the same period last year.
Other income remained flat YoY due to the change in subsidy regime, to lower subsidy on Urea (PKR 100 per bag).
During FY17, the company sold 3.3 million tons of fertilizer, depicting buoyant growth of 25% YoY due to continuation of subsidized rates and exports of 156,000 tons of urea. However, urea prices remained depressed due to decline in global prices and supply glut.
The company announced a gross profit Rs. 18.09 billion which was almost flat with a slight increase of just 0.28% as compared last year’s gross profit of Rs. 18.04 billion.
Financial charges expanded by a mere 2.92% year-on-year to Rs. 2.47 billion as compared to Rs. 2.40 billion in the same period last year.
At the time of filing this report, FFC’s script at the exchange was trading at Rs. 87.49, up by +2.49% with a turnover of 1.61 million shares.
Fauji Fertilizer Company Limited manufactures, purchases, and markets fertilizers and chemicals in Pakistan and Morocco.
It offers Sona urea in prilled and granular forms; Sona DAP, a phosphatic fertilizer; SOP, a nutrient for production of crops primarily fruits and vegetables; and Sona Boron, a crystalline fertilizer in the form of sodium tetra borate decahydrate.
The company is also involved in the generation and sale of electricity through wind energy; and processing of fresh and frozen fruits, vegetables, and frozen cooked and semi cooked food.