Fauji Fertilizer Bin Qasim Ltd.

Fauji Fertilizer Bin Qasim Limited. Fauji Fertilizer Bin Qasim Limited is a Pakistan-based holding company. The Company manufactures, purchases and markets fertilizers. It is involved in meat, dairy and coal based energy generation sectors. It has identified its potential business segments and has undertaken investments in the areas of food, financial, power sector and wind energy projects. Its products include Granular Urea, such as Sona Urea, and Di Ammonium Phosphate (DAP), such as Sona DAP. Sona Urea is a synthetic organic compound containing nitrogen in amide form available in the form of white solid prills. It is applied to soil and also suitable in solution form as spray application. Sona DAP contains nutrient element, phosphorous besides nitrogen available in flowing granular form Granules are stronger, harder and of uniform size. It is suitable for various crops and soils recommended for initial application. It produces over 791,260 metric tons (MT) of DAP and approximately 433,610 MT of Urea.
  • TickerFFBL
  • ISINPK0074601011
  • ExchangePakistan Stock Exchange
  • SectorChemicals
  • CountryPakistan
Rahul Hans

Pakistan fertilizer: Lower offtake push inventory level over 1mn tons again

As per NFDC data, Urea offtake during May 2020 clocked in at c.240k tons, down 60% yoy (-1% mom). On a cumulative basis, total Urea offtake fell 33% yoy to 1.5mn tons in 5MCY20; where, the offtake of FFC, FFBL and EFERT declined by 58%, 76% and 27% yoy respectively. The cumulative market share of these producers (and FATIMA) has increased by 7ppt yoy to 86% in 5MCY19 from 79% in the same period last year (RLNG producers were not operating). The 33% yoy decline in Urea sales in 5M is partly at...

Pakistan Fertilizer_Subsidy expected to normalize inventory, (AKD Daily, May 28, 2020)

AKD DailyAKD DailyPakistan Fertilizer: Subsidy expected to normalize inventory• As per the data released by NFDC, urea offtake for Apr’20 declined by 20/17% MoM/YoY to 242K tons. The sequential decline in numbers was witnessed industrywide (except for EFERT), in anticipation of Fertilizer subsidy announcement.• The overall urea offtake in 4MCY20 clocked in at 1.2mn tons, down 23% YoY. Staggered decline in urea prices (EFERT delayed pass-on of GIDC elimination benefit) throughout the 1QCY20 coupled with subsidy in the offing led to famers delaying fertilizer purchase.  • Urea inventory has incr...

Rahul Hans

Pakistan Fertilizer: Lockdown affects off-take; rising inventory level a concern

As per NFDC data, Urea offtake during April 2020 clocked in at 242k tons, down 17% mom and 20% yoy. On a cumulative basis, total Urea offtake fell 23% yoy to 1.27mn tons in 4MCY20. During the period, Urea offtake of FFBL and EFERT were down by 36% and 41% yoy respectively; in case of FFC, they were up 34% yoy. The cumulative market share of these producers (and FATIMA) has increased by 6ppt yoy to 77% in 4MCY19 from 83% in the same period last year. The 23% yoy decline in Urea sales in 4M is ...

Abdul Ghani Mianoor ...
  • Rahul Hans

Pakistan government approves support package for agriculture

The ECC has approved a PKR50bn package for the agriculture sector. This was included in the PKR100bn earmarked for SMEs and agriculture sector out of the PKR1.2tn relief package to counter the Covid-19 outbreak. Salient features of the package are given below. Impact on fertilizer: Positive for demand As mentioned in our recent report, we expected the government to announce a subsidy on fertilizers, which underpinned our Urea off-take assumption for CY 20 of 5.7mn tons (same as previous 5yr a...

Rahul Hans

Pakistan fertilizers: Limited room for upside

Despite a steep decline of 25% yoy in urea offtake in 1QCY20, we believe that urea demand will rebound in the remainder of CY20f. The combination of lower urea prices, better food commodity prices and government focus on the agriculture sector will lift overall demand to 5yr industry average level of 5.7mn tons, in our view. Significantly lower oil prices will limit gas tariff hikes in future, which will enable RLNG based producers to better negotiate with the government to allow them to prod...

Rahul Hans

Pakistan fertilizer: Lower offtake push inventory level over 1mn tons again

As per NFDC data, Urea offtake during May 2020 clocked in at c.240k tons, down 60% yoy (-1% mom). On a cumulative basis, total Urea offtake fell 33% yoy to 1.5mn tons in 5MCY20; where, the offtake of FFC, FFBL and EFERT declined by 58%, 76% and 27% yoy respectively. The cumulative market share of these producers (and FATIMA) has increased by 7ppt yoy to 86% in 5MCY19 from 79% in the same period last year (RLNG producers were not operating). The 33% yoy decline in Urea sales in 5M is partly at...

Pakistan Fertilizer_Subsidy expected to normalize inventory, (AKD Daily, May 28, 2020)

AKD DailyAKD DailyPakistan Fertilizer: Subsidy expected to normalize inventory• As per the data released by NFDC, urea offtake for Apr’20 declined by 20/17% MoM/YoY to 242K tons. The sequential decline in numbers was witnessed industrywide (except for EFERT), in anticipation of Fertilizer subsidy announcement.• The overall urea offtake in 4MCY20 clocked in at 1.2mn tons, down 23% YoY. Staggered decline in urea prices (EFERT delayed pass-on of GIDC elimination benefit) throughout the 1QCY20 coupled with subsidy in the offing led to famers delaying fertilizer purchase.  • Urea inventory has incr...

Rahul Hans

Pakistan Fertilizer: Lockdown affects off-take; rising inventory level a concern

As per NFDC data, Urea offtake during April 2020 clocked in at 242k tons, down 17% mom and 20% yoy. On a cumulative basis, total Urea offtake fell 23% yoy to 1.27mn tons in 4MCY20. During the period, Urea offtake of FFBL and EFERT were down by 36% and 41% yoy respectively; in case of FFC, they were up 34% yoy. The cumulative market share of these producers (and FATIMA) has increased by 6ppt yoy to 77% in 4MCY19 from 83% in the same period last year. The 23% yoy decline in Urea sales in 4M is ...

Abdul Ghani Mianoor ...
  • Rahul Hans

Pakistan government approves support package for agriculture

The ECC has approved a PKR50bn package for the agriculture sector. This was included in the PKR100bn earmarked for SMEs and agriculture sector out of the PKR1.2tn relief package to counter the Covid-19 outbreak. Salient features of the package are given below. Impact on fertilizer: Positive for demand As mentioned in our recent report, we expected the government to announce a subsidy on fertilizers, which underpinned our Urea off-take assumption for CY 20 of 5.7mn tons (same as previous 5yr a...

Rahul Hans

Pakistan fertilizers: Limited room for upside

Despite a steep decline of 25% yoy in urea offtake in 1QCY20, we believe that urea demand will rebound in the remainder of CY20f. The combination of lower urea prices, better food commodity prices and government focus on the agriculture sector will lift overall demand to 5yr industry average level of 5.7mn tons, in our view. Significantly lower oil prices will limit gas tariff hikes in future, which will enable RLNG based producers to better negotiate with the government to allow them to prod...

FFBL_One-offs tame higher than expected core losses, (AKD, Off the Analyst's Desk, Oct 25, 2019)

  Fauji Fertilizer Bin Qasim Ltd (FFBL) posted 3QCY19 NLAT of PkR464mn (LPS: PkR0.50) on a standalone basis, vs. NPAT of PkR790mn (EPS: PkR0.85) in 3QCY18. This took cumulative 9MCY19 NLAT to PkR2.4bn (LPS: PkR2.59) vs PkR203mn (LPS: PkR0.22) in the same period last year. ·      The loss for the quarter was mitigated by (i) higher than expected other income of PkR2.05bn and, (ii) PkR423mn of gain recorded under the head of ‘other expenses’. ·      The positives were partially offset by higher than expected taxation, with a net positive EPS impact of PkR0.65 for the one-offs. ·      However,...

Pakistan Fertilizer: Maintain ‘Overweight’ post GIDC, (AKD Daily, Sep 03, 2019)

We update our Fertilizer sector estimates post the promulgation of presidential ordinance w.r.t GIDC amendment 2019. We incorporate (i) lower GIDC rates by PKR150/75 per mmbtu for feed/fuel, effective Jul’19, while (ii) reducing our urea price assumption by PKR200/bag. We maintain an Overweight stance on the Fertilizer sector, with FFC as our top pick (total return: 35.9% on LDCP). For FFBL, we have also revised down our primary margins on DAP by US$10/ton to US$110/ton, (DAP retention price of PKR3,685/bag for CY19F), as FFBL continues to grapple with passing on cost inflation due to import ...

Team AKD Research

Pakistan Fertilizer: Nov'18 offtake expectedly stumbles,

Nov'18 total fertilizer offtake fell 23%MoM/32%YoY to 0.85mn tonnes, constituted by urea offtake of 497K tonnes (+7%MoM/-17%YoY), DAP sales of 232K (-42%MoM/-47%YoY), NP sales of 31K (-33%MoM/-45%YoY) and CAN offtake of ~23k (-33%MoM/-62%YoY). Domestic urea production at 527k tonnes (-6%MoM/+26%YoY), holding market share for sales intact at 41%/28%/15%/9% for FFC/EFERT/FATIMA/FFBL moving -38/-43/+67/-53bpsYoY. 11MCY18 cumulative offtake data remained lackluster (total offtake of 8.4mn tonnes -5%YoY), with Urea/DAP/NP/CAN constituting 61/19/5/7% of industry sales, moving +26/+7/-21/-4bpsYoY ...

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