ISLAMABAD: Fauji Fertilizer Company Limited (FFC) has announced its financial results for the period ended September 30, 2022 in its Board of Directors’ meeting held on October 26.

Company’s Sona urea production of 1,808 thousand tonnes was 3 percent lower than last year mainly due to higher maintenance shutdown of plants during the period. Higher import prices of DAP resulted in contraction of DAP market thus the agriculture sector switched to urea. Urea demand in the country thus increased as compared to last year.

The increase in demand was met through higher production by RLNG based plants besides imports by the government, which increased the competition in the industry. However, concerted marketing efforts enabled Sona urea sale by the company of 1,795 thousand tonnes which was only 1 percent lower than last year. The company achieved sales revenue of Rs 79.18 billion compared to Rs 73.59 billion last year.

The imposition of super tax of around Rs 4.69 billion over and above the normal tax liability, combined with higher finance cost due to higher interest rates further impacted negatively on company’s profitability. Improved income on deposits and increased payout by the group companies led to other income of Rs 10.28 billion compared to Rs 5.92 billion last year.

The company was thus able to arrest the decline in profitability to Rs 14.84 billion with an EPS of 11.67, which was only 7 percent lower than last year. The profitability in terms of dollar was registered at $75 million compared to $101 million last year.

The Board of Directors of FFC also announced third interim dividend of Rs 3.18 per share for the period.

Copyright Business Recorder, 2022