Based on the tentative fertilizer sales data, urea dispatches in Sep’23 increased by 4% YoY to 527k tons compared to 508k tons in SPLY, owing to restricted mobility last year due to floods. On a company-wise basis, urea sales of FFC and FFBL combined, and FATIMA ascended by 5% and 9% YoY, arriving at 250k tons and 86k tons, respectively.… Continue

The government’s crackdown against urea hoarders and smugglers has started to yield favourable results as the market prices for farmers have begun to normalise and reduced by around Rs 500 to 600 per bag. Last week, the Interim Interior Minister Sarfaraz Bugti initiated strict action against culprits involved in the smuggling and hoarding essential commodities, like wheat, sugar, urea and oil.… Continue

Pakistan’s fertiliser sector is of key importance to the Nation’s food security and overall economic development. The sector continues to show resilience to economic headwinds with ever-increasing inflation and directions of the IMF to increase the gas cost (a key input in ammonia production, imperative for the production of urea, which remains a staple fertiliser) to curb the circular debt.… Continue

Pakistan is the only country out of the top five major urea consumers – including China, Brazil, USA, and India – that is, unfortunately, not investing in capacity growth over the next five years, even though it is facing a rapid surge in population.… Continue

Pakistan’s Urea sales in Aug-2023 are expected to clock in at 650k tons, up 18% YoY compared to 552k tons in Aug-2022. This significant YoY growth in Urea sales is due to low sales figures of the previous year, which were impacted by heavy rainfall across the country.… Continue

FATIMA just announced its 2QCY23 results, posting a PAT of PkR1.2bn (EPS: PkR0.59/sh) vs. PAT of PkR0.2bn (EPS: PkR0.07/sh) in the SPLY. On a QoQ basis, the company posted a 71.4% drop in earnings due to the impact of high taxation, mainly because of super tax.… Continue

We expect FATIMA to post an EPS of PkR2.19/sh against PkR2.06/sh in 1QCY23 and profit of PkR0.08/sh in 2QCY22. Revenue is projected to clock in at PkR52.8bn (↑57.5%/59.1% QoQ/YoY owing to higher prices and sales from Fatimafert during the year, due to provision of RLNG.… Continue

Engro Corporation Limited (ENGRO) is expected to announce its 1HCY23 financial result on 16th Aug’23, where we expect the company’s consolidated earnings to clock in at PKR 8,825mn (EPS: PKR 16.45 @536mn shares), up by 19% YoY. Every quarter, the company’s profitability is forecasted to arrive at PKR 4,178mn (EPS: PKR 7.79 @536mn shares) in 2QCY23 compared to a loss of PKR 558mn (LPS: PKR 1.04 @536mn shares).… Continue

The management of Engro Polymer & Chemicals Limited (EPCL) held a corporate briefing session today to discuss the financial results for 1HCY23 and the outlook.

Brief Takeaways

· To recall, the company posted a profit after tax (PAT) of PKR 1.6bn (EPS: PKR 1.72) in 2QCY23, down by 33% YoY compared to PKR 2.3bn (EPS: PKR 2.57) during SPLY.… Continue

To recall, the EFERT posted a consolidated net profit of PKR 5,464mn (EPS: PKR 4.09) in 1HCY23 compared to PKR 5,413mn (EPS: PKR 4.05) in 1HCY22, up by 1% YoY. The company’s urea market share declined to 33% in 1HCY23 from 34% in 1HCY22.… Continue

The management of Engro Fertilizers Limited (EFERT) today disclosed the financial result for 1HCY23, posting a consolidated profit after Tax (PAT) of PKR 5,464mn (EPS: PKR 4.09) against PKR 5,413mn (EPS: PKR 4.05) in 1HCY22, an uptick of 1% YoY. Whereas consolidated earnings in 2QCY23 clocked in at PKR 1,060mn (EPS: PKR 0.79) compared to a loss of PKR 98mn (LPS: PKR 0.07) in SPLY.… Continue

The management of Fauji Fertilizer Bin Qasim Limited (FFBL) held a corporate briefing session on 26th Jul’23 to discuss the 1HCY23 financial result and future outlook.

Brief Takeaways

To recall, the company posted a loss after tax of PKR 4,950mn (LPS: PKR 3.83) in 1HCY23 against a net profit of PKR 3,410mn (EPS: PKR 2.64) in SPLY.… Continue

Fauji Fertilizer Company Limited (FFC) disclosed its financial result today where the company posted net profit of PKR 13,079mn (EPS: PKR 10.28) during 1HCY23 against PKR 9,599mn (EPS: PKR 7.55) in 1HCY22, up by 36% YoY. On the other hand, the profitability in 2QCY23 climbed up by 59% YoY to PKR 5,349mn (EPS: PKR 4.20).… Continue

EFERT—2QCY23 earnings expected to clock in at PkR3.87/sh: We expect EFERT to post a consolidated EPS of PkR3.87/sh against earnings of PkR3.30/sh in 1QCY23 and a loss of PkR0.07/sh in 2QCY22.

Revenues are expected to remain flat QoQ while rising by ~14%YoY, over an increase in urea prices witnessed at the end of 1QCY23 while the quarterly decline in urea offtakes.… Continue

Fauji Fertilizer Bin Qasim Limited (FFBL) announced financial result for 1HCY23 today where the company posted a loss after tax of PKR 4,950mn (LPS: PKR 3.83) compared to a net profit of PKR 3,410mn (EPS: PKR 2.64) in 1HCY22. On a quarterly basis, the company reported earnings of PKR 479mn (EPS: PKR 0.37), down by 73% YoY.… Continue

According to the available provisional data, urea dispatches for the month of Jun’23 showcased a fall of 17% YoY to 610k tons compared to 737k tons in SPLY. On a company-wise basis, urea sales of FFC and FFBL combined, EFERT, and FATIMA plummeted by 17%, 13%, and 14% YoY, settling at 296k tons, 210k tons, and 85k tons, respectively.… Continue

• As per the latest data compiled by NFDC, total urea availability during May 2023 was 735k tons, which comprised 242k tons of the previous month’s leftover and domestic production of 493k tons. Urea’s offtake during May 2023 was 459k tons.… Continue

Pakistan Urea sales in May-2023 are expected to clock in at 459k tons, up 10% YoY compared to 418k tons in May-2022. Number is expected to be up by 12% MoM, compared to 408k tons of Apr-2023, due to seasonal factors.… Continue

Urea offtake in April 2023 reduced by 11% YoY and 17% MoM to c.408,000 tons. The MoM decline in volumes is due to off-season impact. The market share of EFERT and FFBL increased by 4/2 ppt YoY basis to 38%/9%, while the market share of FFC reduced by 7ppt YoY to 33%, amidst self-imposed measures to pause volumes due to price disparity.… Continue

The available provisional data points towards a reduction in urea offtake by 11% YoY, settling at 409k tons in Apr’23 against 459k tons in SPLY. On a company-wise basis, urea sales of FFC and FFBL combined and FATIMA depicted a fall of 21% and 19% YoY, clocking in at 171k tons and 53k tons, respectively.… Continue

Fatima Fertilizer Company Limited (FATIMA) announced its 1QCY23 result today, where the company posted NPAT of PkR4.3bn (EPS: PkR2.06), remaining flat on a QoQ basis while decreasing by 24% on the yearly basis. The result is above our expectations on the back of a substantial improvement in gross margins for the company.… Continue

Fauji Fertilizer Company Limited (FFC) announced its 1QCY23 result today, where the company posted an unconsolidated NPAT of PkR7.7bn (EPS: PkR6.1), an increase of 48%QoQ and 24%YoY and in line with our expectations. Furthermore, the company announced an interim dividend of PkR4.3/sh, taking the company’s payout ratio to 70%.… Continue

Overview of Financial Performance

Engro Corporation’s standalone revenue for the first quarter was PKR 6.4 bn – down by 21%, primarily due to lower dividends received from Engro Polymer & Chemicals Limited (EPCL) due to reversal of commodity cycle and increase in gas prices.… Continue

Engro Fertilizers Limited (EFERT) announced the financial result for 1QCY23 yesterday, posting a consolidated Profit after Tax (PAT) of PKR 4,404mn (EPS: PKR 3.30) compared to PKR 6,172mn (EPS: PKR 4.13) and PKR 6,409mn (EPS: PKR 4.80) in 1QCY22 and 4QCY22, respectively down by 29% YoY | 31% QoQ.… Continue