Fauji Fertilizer Co. Ltd.

Fauji Fertilizer is engaged in the manufacturing, purchasing and marketing of fertilizers including the investment in other fertilizer manufacturing operations. As of Dec 31 2004, Co. had a design capacity of 2,455,000 tonnes for urea production and 445,000 tonnes for DAP production.
  • TickerFFC
  • ISINPK0053401011
  • ExchangePakistan Stock Exchange
  • SectorChemicals
  • CountryPakistan
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...

Fauji Fertilizer Company Ltd: 1 director sold

A director at Fauji Fertilizer Company Ltd sold 100,000 shares at 110.000PKR and the significance rating of the trade was 55/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showing Close periods where trading activity is restricted under listing rules. Th...

Rahul Hans

Fauji Fertilizer Company Ltd: Q1 CY 20 review: Delay in pass-on of GIDC cut elevated gross margins

Fauji Fertilizer Company Ltd (FFC) posted 1QCY20 NPAT of PKR4.3bn (EPS: PKR3.35), up 15% yoy. The result was slightly below our NPAT expectation of PKR4.5bn (EPS: PKR3.56) mainly due to (i) lower gross margins by 1ppt, and (ii) lower other income. FFC also announced an interim cash dividend of PKR2.5/sh, in line with our expectation. Key highlights: * Net revenues increased by 2% yoy to PKR20.6bn in 1QCY20 – amid slightly higher offtake of Urea which increased by 4% yoy to 583k tons in 1QCY2...

Fauji Fertilizer Company Ltd: 1 director sold

A director at Fauji Fertilizer Company Ltd sold 100,000 shares at 110.000PKR and the significance rating of the trade was 55/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showing Close periods where trading activity is restricted under listing rules. Th...

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

Fauji Fertilizer Company Ltd: Q1 CY 20 review: Delay in pass-on of GIDC cut elevated gross margins

Fauji Fertilizer Company Ltd (FFC) posted 1QCY20 NPAT of PKR4.3bn (EPS: PKR3.35), up 15% yoy. The result was slightly below our NPAT expectation of PKR4.5bn (EPS: PKR3.56) mainly due to (i) lower gross margins by 1ppt, and (ii) lower other income. FFC also announced an interim cash dividend of PKR2.5/sh, in line with our expectation. Key highlights: * Net revenues increased by 2% yoy to PKR20.6bn in 1QCY20 – amid slightly higher offtake of Urea which increased by 4% yoy to 583k tons in 1QCY2...

Masroor Hussain Zaidi

FFC: Earnings remained stable as margin improves

Fauji Fertilizer Company Limited (FFC) announced its results earlier today, posting profit after tax of PKR 4.26bn (EPS: PKR 3.35) during 1QCY20 against earnings of PKR 3.7bn (EPS: PKR 2.91) during same period last year.  Along with the result, the company also announced a dividend of PKR 2.5/Sh. This result was broadly in line with our expectations. Revenue of the company stood at PKR 20.6bn for the quarter, up by 2% YoY on the back of improved offtakes. Urea sales of FFC increased 4.8% on YoY to 0.59mn Tons. This higher share is attributable to lower utilization levels of RLNG based fueled...

Pakistan Fertilizer: Pricing confusion hit urea offtake in Jul’19, (AKD Daily Aug 28, 2019)

Urea offtake for Jul’19 clocked in at 464K tons, down 28/7% MoM/YoY, taking cumulative 7MCY19 urea offtake to 3.3mn tons, up 2% YoY. The decline in Jul’19 urea offtake is accounted for by lack of clarity on Urea pricing and GIDC settlement issue, in our view. Company-wise, Urea offtake declined across the industry, except for EFERT, whose offtake remained flattish YoY as well as MoM. Urea offtakes of FFC and FFBL declined by 18/37% on YoY basis and, a more notable 33/62% on MoM basis, respectively. The Urea inventory closed at 374K tons, up 1.1/4.3x MoM/YoY.  DAP offtake during the month, o...

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