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FFC profit almost doubles (The Nation)


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FFC profit almost doubles

Published: November 01, 2011
LAHORE - The Fauji Fertilizer Company Limited profit has become almost double in nine months of the calendar year 2011 as the company continued to raise urea rates despite constant gas supply to its plants due to political interference, sources said. 
As per the figure of industry, the FFC has announced its 9MCY11 financial result on Monday, reporting a profit after tax of Rs13.84 billion in 9MCY11 which is almost double in comparison of profit of R7.02 billion the company had recorded in the same period last year. 
On QoQ basis, earnings posted a jump of 38 percent to Rs5.65 (EPS: PKR6.66). In addition to this, the company has also announced a cash dividend of Rs5.50/share in 3QCY11 taking cumulative 9MCY11 dividends to Rs14.75/share.
According to experts, monetary sale witnessed an increase of 35 percent YoY to Rs38.54b as against the sales of Rs20.51b 9MCY11. However, on QoQ basis, sales of the company reached Rs14.32 billion with a sharp growth of 9 percent versus sales of Rs13.12 billion reported in previous quarter. The reason behind the exceptional growth in sales was because of 9 percent YoY growth in urea offtake to 1,787k tons coupled with a massive rise of 35 percent YoY in urea ex-factory prices, which led the company to post a substantial upsurge of 73 percent YoY in gross profit to Rs22.00 billion (gross margin of 57 percent) in comparison of last year when company’s gross profit was at PKR12.72 billion.
(gross margin of 45 percent).
Sarfraz Abbasi from Summit Capital observed that FFC has also posted a substantial decline in financial cost of 28 percent YoY to Rs603m in 9MCY11 as against Rs838m in the corresponding period last year. On quarterly basis, financial cost was lower by 46 percent to Rs131m over previous quarter due to lower debts on balance sheet.
Other income showed a rise of 97 percent YoY to PKR4.40 billion in 9MCY11 as against the other income of PKR2.25 billion. Other income played the role of key profit driver as it has a contribution of 32 percent in total profit of the company. On QoQ basis, other income showed an upsurge of 64 percent YoY to 1.52 billion in comparison of PKR0.92 billion recorded in previous quarter.

http://nation.com.pk/pakistan-news-newspaper-daily-english-online/Business/01-Nov-2011/FFC-profit-almost-doubles-OUR-STAFF-REPORTER

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