FFC earns Rs. 4.89 Billion For The Period Ended June 30, 2016
Lahore: July 27, 2016: Fauji Fertilizer Company (FFC) announced half yearly results amid unprecedented adverse market conditions. The Urea industry remained under severe pressure during the period.
This is mainly attributed to poor farm economics and persisting rumors of urea subsidy that negatively impacted Urea Sales. Thus the urea market witnessed a substantial decline of around 36% in sales, which is the lowest half yearly offtake in more than a decade. In spite of volatile market conditions, FFC recorded net earnings of Rs. 4.89 billion for the period ended June 30, 2016, in spite of levy of 3% Super Tax and absorption of part of fertilizer subsidy announced by the Government. Although, the core business of the Company witnessed significant decline due to factors highlighted above, however, the deficit has been bridged by highest ever dividend of Rs 2.27 billion received through associated companies. The Company earned Rs. 3.85 per share, while declaring divided per share of Rs 1.55.The Company created a new benchmark during the period in terms of highest ever urea production of 1.25 million tonnes with lowest shut down periods which reflects operational excellence of our engineers and the management. FFC also achieved 12.6 million man-hours of safe operations without lost work injury. The rising inventory and high cost of production continue to pose substantial risk to the Company’s profitability, however, the management is committed to mitigate the negative impact of the current business environment through various strategies.