FFC Announces Profit of Rs. 7.51 Billion
Fauji Fertilizer Company Limited (FFC) announced Nine-Month Financial results for 2016 with levy of super tax translated into net earnings of Rs. 7.51 billion for the period with an EPS of Rs. 5.90. A record production of 1,876 thousand tones attributable to restored natural gas quota and consistent efforts to enhance production efficiencies.
The Company also achieved 13.7 million man-hours of safe operations without lost work injury. Sales revenue and dividend income witnessed decline due to the ongoing unprecedented adverse market conditions which coupled with levy of super tax translated into net earnings of Rs. 7.51 billion for the period with an EPS of Rs. 5.90.
The prevailing adverse market conditions have shown signs of stability during the quarter, however, due to lower off-take during the first half of the year, the industry urea sales for the period witnessed a decline of 12%. Concerted efforts by Company resulted in urea offtake of 1,597 thousand tones, lower by only 6% compared to last year.
Company’s Annual Report – 2015 has been declared overall winner in the Best Corporate Report Awards competition by joint committee of the ICAP and ICMAP, besides being awarded the first place in the Chemicals Sector. The Company’s Sustainability Report – 2015 has also been awarded first prize in the relevant category. Pakistan Stock Exchange acknowledged outstanding financial and management performance of the Company by adjudging it overall winner of ‘PSX Top 25 companies’ for sixth consecutive year.
Better returns to farmers from major crops due to slightly improved commodity prices and lower input costs (subsidized fertilizer) will affect the market positively in upcoming months. Further, persistent decline in international urea prices and poor farm economics continue to pose pricing constraints to the Company.