EFERT production has improved and grew at a 3-year CAGR (2018-2021) of 5% against an industry CAGR of 2%. This was on the back of the improved gas supply and efficiency of the Enven plant. Further, the company has undertaken a BMR of old plants, which is expected to improve their production.… Continue
Pakistan’s urea sales in Jun-2022 expected to clock in at 724k tons, up 5% YoY. The same is also likely to be up 74% MoM due to seasonal impact. Urea sales in 1H2022 are expected to clock in at 3,234k tons compared to 2,899k tons in 1H2021, up 12% YoY due to strong Urea demand amid a higher gap between Urea and DAP.… Continue
Urea offtake in May 2022 decreased by 9% mom and 17% yoy to 417,521 tons. The yoy decrease in offtake is likely due to higher Urea prices and higher base effect in SPLY. On a cumulative basis, in 5MCY22, Urea offtake increased by 14% yoy to 2.51mn tons.… Continue
The demand for fertilizer in the country remained strong in unbeatable markets from agriculture; currently, it contributes ~22% to total GDP, and during the last 20 years, its contribution
remained at ~19%.. The government targets agriculture growth of 3.9% for FY23 mainly due to recovery in cotton and wheat production, ample availability of water, certified seeds, and agriculture credit facilities.… Continue
As per provisional fertilizer offtake data for the month May’22, urea offtake plummeted by 18% YoY to 412k tons compared to 501k tons in SPLY.
Offtake of FFC and FFBL (combined), EFERT, and FATIMA depicted a fall of 10%, 27%, and 32% YoY, respectively, clocking in at 217k tons, 146k tons, and 32k tons, respectively.… Continue
Fertilizer manufacturers have agreed to fix retail Urea price at Rs1,850/bag against commitment from the government to settle the industry’s Rs80bn outstanding sales tax and subsidy receivable in the coming Budget FY23 and also reduce gas tariffs for Engro Fertilizers on Petroleum Policy (PP12) gas.… Continue
Urea offtake in April 2022 decreased by 10% mom, while increasing 48% yoy to 458,952 tons. The yoy increase is led by better farm economics and low base in SPLY. On a cumulative basis, in 4MCY22, Urea offtake increased by 23% yoy to 2.09mn tons.… Continue
As per latest notification under S.R.O No.607(I)2022 by Ministry of Industries & Production, Urea prices are now being fixed at Rs1,768/bag from the existing price of Rs1,900-2,000 per bag. Provinces and federal agencies are allowed to add an allowance to the notified prices for extra transportation costs in remote or distant areas as per the notification. … Continue
Engro Fertilizers, Pakistan’s premier seed-to-harvest solutions provider, has partnered with the Sindh Agriculture University, Tando Jam, to organize a mega seminar on cotton production technology to help boost crop productivity and farmer’s livelihood.
Aijaz Ahmed Mahesar (Secretary Agriculture Sindh) was the chief guest on the occasion, while Dr.… Continue
Fauji Fertilizer Bin Qasim (FFBL) while commenting on the news report regarding the reduction in urea prices, management has denied they have not agreed with the Government to reduce urea prices. However, they are still in talks with Government on this matter.… Continue
According to provisional fertilizer offtake data for Apr’22, urea offtake jumped by 45% YoY to 448k tons compared to 309k tons in SPLY. Offtake of FFC and FFBL (combined), EFERT, and FATIMA showcased an increase of 32%, 33%, and 152% YoY, respectively, clocking in at 216k tons, 146k tons, and 65k tons, respectively.… Continue
According to the 1Q2022 report of Engro Fertilizer, the Company’s urea production stood at 568 KT vs 523 KT in Q1 2021. Sales during the period stood at 549 KT vs 601 KT during the same period last year due to higher opening inventory in 2021.… Continue
According to the 1Q2022 report of Engro Fertilizer, encompassing market overview, amidst Russia – Ukraine crises, urea prices have increased to USD 1,005/T (landed equivalent PKR 11,741/bag) by the end of Q1 2022 from USD 957/T (landed equivalent of PKR 10,891/bag) prevailing at the end of 2021.… Continue
Engro Foundation, the social investment arm of Engro Corporation, has announced the two recipients of its flagship initiative, I Am The Change (IATC) Impact Awards 2021, in recognition of these organizations’ tireless efforts to support the fight against COVID-19 across Pakistan.… Continue
Fauji Fertilizer Company (FFC) announced its financial result today, where the company has posted an unconsolidated profit of Rs6,240mn (EPS: Rs4.90), up 7% YoY and 4% QoQ. The result came in line with our expectations.
Alongside the result, the company announced an interim cash dividend of Rs3.70/share, lower than our expectation of Rs4.0/share.… Continue
· As per NFDC, Mar’22 urea offtake for the industry clocked in at 509k MT, up 48.3%YoY but contracting 3.4%MoM on account of maintaining additional buffer for upcoming months in case of unforeseen circumstances.
· Company wise, FATIMA recorded sales of ~63k MT (+130%YoY/-4.3%MoM), followed by EFERT (~171k MT, +81%YoY/+0.5%MoM) and FFC (~168k MT, +16%YoY/-8.6%MoM) while sales of FFBL declined 15.2%YoY but increased by 12%MoM.… Continue
Lotte Chemical Pakistan Limited (LOTCHEM) announced its 1QCY22 financial result today where the company posted a profit after tax (PAT) of PKR 2,615mn (EPS: PKR 1.73), up by 60% YoY compared to PKR 1,639mn (EPS: PKR 1.08) during SPLY. On a QoQ basis, earnings were up by 85%.… Continue
Fatima Fertilizer is pleased to announce that Rabel Sadozai, a seasoned marketing professional, has been recently promoted to lead the Sales and Marketing function within the organization. Rabel has become the first-ever female within Pakistan’s agriculture and fertilizer sector to have claimed such a high ranking position.… Continue
Fauji Fertilizer Bin Qasim Limited (FFBL) announced financial result for 1QCY22 today where the company posted earnings of PKR 1,627mn (EPS: PKR 1.26) against PKR 1,266mn (EPS: PKR 0.98) in 1QCY21, up by 28% YoY. On a sequential basis, the bottom-line climbed up by a massive 7x QoQ owed to absence of allowance for expected credit losses related to FML.… Continue
Pakistan’s premier conglomerate, Engro Corporation (PSX: ENGRO) announced its financial results for the quarter ended March 31, 2022.
Overview of Financial Performance
During the first quarter, Engro Corporation’s standalone profitability exhibited a substantial growth of 92% and reached PKR 6.88 billion in Q1 2022 from PKR 3.59 billion in Q1 2021.… Continue
The KSE100 has slipped this week, tracking renewed PKR depreciation. Today, it could be impacted by the surge in T-Bill yields, by 55-70bps vs. the previous auction to 13.50%-13.85%, again opening up a sizeable gap vs. the SBP’s Policy Rate at 12.25%.… Continue
Engro Corporation Limited (ENGRO) is anticipated to announce its 1QCY22 financial result on 21st Apr’22, where we expect company’s consolidated earnings to be stable at PKR 8,348mn (EPS: PKR 14.49). On the fertilizer business front, EFERT’s net profit settled at PKR 5,511mn (EPS: PKR 4.13), down 4% YoY during 1QCY22 amid to i) fall in gross margin by 975bps YoY, settling at 29.50% since company is accruing industrial feed gas rate at EnVen plant as concessionary gas period has ended on 30th Jun’21 and ii) jump in finance cost due to higher interest rates.… Continue
The local fertilizer Industry is providing urea at around 84% discount, equivalent to PKR 9,823 per bag, and is expected to enable import substitution of USD 5.3 billion in 2022. Discussing the latest business results and future outlook in first quarter analyst briefing, Imran Ahmed – Chief Financial Officer of Engro Fertilizers shared that the fertilizer sector is passing on a benefit of PKR 900 billion per annum to farmers through the provision of urea at significant discount to current global prices.… Continue
According to Engro Fertilizers (EFERT), their both plants are operating at maximum capacity. However, old plant will undergo a 50-60 days’ turnaround whereas Enven plant is expected to stay operational throughout the whole year. The abstract from the analyst briefing of the Company.… Continue
Urea industry sales have increased by 17% YoY to 1.6mn tons in 1Q2022 compared to 1.4mn tons in 1Q2021. The growth in Urea demand has resulted from improved farm economics coupled with the increasing price disparity of Urea compared with other fertilizers, including DAP.… Continue