Skip to main content

Hitting the wall: Fertiliser sales hit by low gas supply (Express Tribune)


Hitting the wall: Fertiliser sales hit by low gas supply

Published: November 26, 2011
Sales improved by meagre 3% to 803,000 in October on a monthly basis against 776,000 tons sold in the previous month. ILLUSTRATION: SAMAD SIDDIQUI
KARACHI: 
Fertiliser sales were under pressure in October due to prolonged shut down of Sui Northern Gas Pipelines Limited-based plants and persistently low gas supply to urea manufacturers, according to Summit Capital.
Sales improved by meagre 3% to 803,000 in October on a monthly basis against 776,000 tons sold in the previous month.
Top two fertiliser products showed mixed numbers as urea sales declined by 1% to 518,000 while di-ammonia phosphate surged 65% to 204,000 in the period under review, said Summit Capital analyst Sarfraz Abbasi.
Among listed players, Engro posted a substantial decline of 46% to 65,000 tons in urea sales. Fauji Fertilizer Company jumped 8% to 218,000 tons while Dawood Hercules posted highest decline of 40% to 190,000 due to persistent shut down owing to gas cuts.
Fauji Fertiliser Bin Qasim, sole manufacturer of DAP, posted a substantial growth of 52% as the firm managed to capture sales lost from its Sui-based counterparts.
The country’s gas distribution network is segmented into three companies namely Sui Northern Gas Company (SNGPL), Sui Southern Gas Company (SSGC) and Mari Gas with market share of 46 per cent, 29 per cent and 15 per cent, respectively.
Some of the companies are on the SNGPL network while others are on the Mari Gas network.
Meanwhile, Engro’s DAP sales fell 14% to 33,000 tons compared with 39,000 tons in the preceding month.
Average urea prices surged by 65% to Rs1,393 per bag in the first ten months of 2011. Similarly, ten months average DAP prices stood at Rs3,835 per bag, showing 48% growth over last year.
Published in The Express Tribune, November 26th, 2011.

Comments

Post a Comment

Popular posts from this blog

Dark days for fertiliser industry continue

Dark days for fertiliser industry continue Published: December 28, 2011 Sales of urea, the most widely used fertiliser, declined by 5% in the period from January to November 2011 due to persistent gas outages faced by manufacturers which has led to a drop in production levels. The four plants which are on the Sui Northern Gas Pipelines Limited network remained the main victims of the chaotic situation due to gas shortage. The dark days are expected to continue as the government in a new gas load management plan has agreed to cut-off gas supply to the four plants on the SNGPL-based pipeline. The four plants include Engro Corporation’s Enven, Pak-Arab Fertilizer, Agritech Fertilizer and Dawood Hercules Fertilizer. Similarly, another fertilizer, di-ammonia phosphate (DAP) witnessed a decline in sales by 18% to 1.01 million tons on a yearly basis against 1.24 million tons in the same period last year, according to data released by National Fertiliser Development Centre on Tuesday....
Post a Comment
Read more

Corporate results: Pak Suzuki posts lower than expected results

                           Corporate results: Pak Suzuki posts lower than expected results By  Farhan Zaheer Published: October 31, 2013 Pak Suzuki sold 59,292 cars in 9MCY13 compared to 69,589 in the same period of last year, down by a significant 15% YoY. PHOTO: FILE KARACHI:  Pak Suzuki Motor Company – the biggest automobile manufacturer by market share in Pakistan – has posted a handsome earning of Rs371 million in the July-September quarter, against a loss of Rs193 million in the corresponding period last year. The company recorded per share earnings of Rs4.51 in the third quarter of 2013 against a loss per share of Rs2.35 last year. In comparison to the third quarter of previous year, the company’s gross profit increased significantly to Rs890 million against a negative growth of Rs49 million. However analysts had projected better results, blaming the ...
Post a Comment
Read more

Car sales surge by 20.5 per cent

Car sales surge by 20.5 per cent Aamir Shafaat Khan   | Business |  From the Newspaper (13 hours ago) Today Nauman Khan of Top Line Securities said December 2011 sales declined as buyers preferred to defer orders due to year end phenomenon. - File photo KARACHI : Car sales in the first half of current fiscal year went up by 20.5 per cent amid negative developments including the government’s decision to impose a ban on CNG kits and cylinders, suspension in production of Honda Civic and City and increase in prices of all vehicles. According to figures shared by the Pakistan Automotive Manufacturers (PAMA), consumers purchased 12,240 more cars in July-December 2011 to 71,886 units as compared to 59,646 units in the same period of 2010. Increase in production of Suzuki Mehran and Suzuki Bolan for onward supply to Punjab government’s Yellow Cab Scheme was the main reason that averted the negative impact of ban on ...
Post a Comment
Read more