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Corporate results: FFBL profit up despite gas curtailment woes

Corporate results: FFBL profit up despite gas curtailment woes

By Our Correspondent
Published: October 26, 2013



Earnings per share for the nine month period were recorded at Rs3.58, up 57% from Rs2.28 in the previous year. PHOTO: FILE
KARACHI: Fauji FertilizerBin Qasim Limited (FFBL) announced its financial results for the first ninth months of calendar year 2013, revealing an after-tax profit of Rs3.2 billion, up 51% on a consolidated basis from Rs2.1 billion in the previous year. However profit after tax for the third quarter of the fiscal year remained largely the same at Rs1.4 billion when compared to last year’s figure of Rs1.48 billion.
Earnings per share for the nine month period were recorded at Rs3.58, up 57% from Rs2.28 in the previous year. The company issued a dividend of Rs1 per share.
The company recorded a rise in net sales for the nine month period at Rs33.7 billion, up 15% from Rs29.2 billion in the previous year. The rise in sales resulted in a gross profit of Rs9.1 billion compared to Rs6.43 billion in the previous year.
The rise in monetary sales is primarily because of a low base as the company produced lower Di-Ammonium Phosphate (DAP) and urea due to non availability of gas coupled with annual overhaul of the plant because of which production operations remained suspended for about 64 days. However, the company was still able to increase production over the previous year for both urea and DAP, resulting in higher off-takes, according to Sarfraz Abbasi of Summit Research.
However net sales in the third quarter of the calendar year actually dropped 24% to Rs13.6 billion when compared to Rs17.9 billion of last year, bringing gross profits down from Rs3.9 billion to Rs3.8 billion, earnings per share down to Rs1.58 from a previous Rs1.59.
According to Shajar Capital, DAP sales during the first nine months witnessed a 21% increase year on year, although urea offtake witnessed a slight decrease on 3% year on year.
The company also saw an 8% drop in financial costs coming in at Rs1.2 billion, from Rs1.3 billion in the previous year.
The improvement in earnings is primarily attributable to the ~21%YoY increase in the company’s DAP sales during 9MCY13, although urea offtake witnessed a slight decrease on 3%YoY.

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