Pakistan fertilizer: Sequential uptick due to low base effect, (AKD Daily, Sep 26, 2019)
- Urea offtake for Aug’19 clocked in at 625K tons, up 35/45% MoM/YoY, taking cumulative 8MCY19 urea offtake to 3.8mn tons, up 7% YoY. The increase in Aug’19 urea offtake is accounted for by sequentially lower urea price.
- Company-wise, Urea offtake increased across the industry, except for FATIMA, whose offtake remained flattish YoY and down 5%MoM. Meanwhile, Urea offtakes of FFC, FFBL and EFERT increased by 22/32/13% on YoY basis. The Urea inventory closed at 324K tons, up 2.3x YoY.
- DAP offtake during the month, on the other hand, declined by 48%MoM to 105K tons led by potential price hikes during upcoming Rabi season, taking cumulative 8MCY19 DAP offtakes to 842K tons, down 9% YoY. DAP offtake declined sequentially across players, with FFC/FFBL/EFERT posting 55/53/54% MoM lower offtake.
- The GoP has scrapped the presidential GIDC ordinance 2019 due to pressure from various stakeholders while directing Supreme Court to conduct priority hearing of the GIDC case. We advise investors to maintain a cautious stance on the sector in the near term.
AKD Research
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.
AKD Securities Ltd. is one of the leading securities firm in Pakistan, providing a comprehensive range of investor focused services, including equity brokerage, economic and securities research, investment banking and financial advisory services. AKD Securities accounts for more than 6% of the average daily value of the Karachi Stock Exchange. AKD Securities was the first brokerage house to launch an online trading platform in Pakistan in November 2002 and now has the largest market share with over 6000 customers. This has helped diversify and expand the retail investor base in the country and ushered in a whole new universe of investors to the stock market.
AKD Securities Ltd. caters to a diversified group of domestic and international institutional investors, high net worth individuals and upscale retail clients, including expatriate Pakistanis. With high quality research, unparalleled execution and distribution capability for both regular and large block trades, AKD Securities Ltd. has earned an outstanding reputation in the Pakistani securities industry.Outside of commercial banks, AKD Securities Ltd. is one of the biggest capital market firms in the country. AKD Securities is the leader in raising and providing risk capital in underwriting, market making and mergers and acquisitions in Pakistan. Good corporate governance and professionalism are emphasized throughout the firm and AKD Securities Ltd. is amongst the very few companies to have introduced a firm-wide comprehensive CODE of ETHICS, overseen by an independent compliance manager.Ultimately, our success is based on the quality of service we provide to our customers and the trust and confidence reposed in us by them. Our focus, therefore, remains on customer satisfaction at all levels in the company.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.