Fauji Fertilizer profits down 30 percent

KARACHI: Fauji Fertilizer Company (FFC) has announced net profits of Rs11.78 billion for the year ended December 31, 2016, which is 30 percent lower than the earnings of Rs16.76 billion in 2015, a statement said on Tuesday.

Consequently, the earnings/share (EPS) for the year declined to Rs9.26 as compared to Rs13.18 last year. The company also announced a final cash dividend of Rs2.75/share, taking cumulative dividend for the year to Rs7.90/share.

Tahir Abbas at Arif Habib Limited said in a report that sales declined 14 percent to Rs72.87 billion during the period, attributable predominantly to lower urea prices amid announcement of subsidy package in FY16/17 budget.

“Financial charges expanded massively by 63 percent to Rs2.406 billion, owed to augmented borrowings,” Abbas added. The 72 percent surge in other income to Rs10.66 billion was aided primarily by cash subsidy on urea and DAP under this head. “The announcement remained in line with our expectations,” Humaira Akhtar said in a report issued by JS Global.