FFBL half-year loss trimmed to Rs3.2bln

Fauji Fertilizer Bin Qasim Limited (FFBL) managed to bring loss marginally down to Rs3.2 billion for the first half ended on June 30 from Rs3.5 billion in the corresponding period a year earlier due to increase in revenue, a stock announcement said.

LPS came at Rs3.08 compared to Rs2.95. The company didn't announce cash dividend.

Revenue increased to Rs31.4 billion in the first half compared to Rs28.4 billion a year earlier.

However, sales fell to Rs18.6 billion in Q2 compared to Rs21.6 billion a year earlier due to falling urea and diammonium phosphate offtake (DAP) and drop in urea and DAP prices, according to Arif Habib Limited.

Gross margins increased 169 basis points to 13 percent in Q2 due to removal of gas infrastructure development cess on feed gas, stable DAP primary margins and lower repair and maintenance charges.

Analyst Sunny Kumar from Topline Research said the company’s quarterly loss declined to Rs321.8 million compared to Rs1 billion owing to reduction in cost of sales.

The company booked taxation expense of Rs314 million in 2Q2020 versus a tax reversal of Rs533 million in the same period last year.