Depressed primary margins on di-ammonium phosphate because of higher phosacid prices and incomplete gas infrastructure development cess on urea to customers led to an overall decline in Fauji Fertiliser Bin Qasim’s third quarter earnings.
For the first nine months of the year (9MCY14), FFBL’s profitability dropped by 46pc to Rs1.77bn, against Rs3.3bn during the same period last year. Its earnings-per-share worked out at Rs1.90, down from last year’s Rs3.53.
The company announced an interim cash dividend of Rs0.75 per share, taking its total payout for 9MCY14 to Rs1.75 per share, against Rs2.75 during 9MCY13.
Lower di-ammonium phosphate (DAP) and urea production owing to higher gas curtailment resulted in a volumetric decline in sales. The company, however, experienced an improvement in ‘other income’ because of profitable operations of the parent group’s other ventures like Askari Bank Limited, Pakistan Maroc Phosphore (PMP) and Fauji Cement Company Limited (FCCL).
Local DAP prices up: In contrast to the direction of international DAP prices, domestic DAP prices rose by Rs132 per bag to Rs3,532 per bag in October. That compares with a 10pc reduction in DAP Tampa to $446 per MT since September.
