Fauji Fertilizer profit up 22pc; beats market expectations

KARACHI: Fauji Fertilizer Company (FFC) profit after tax increased 22 percent to Rs20.819 billion in the year ended December 31, 2020, translating into earnings per share (EPS) of Rs16.36, a bourse filing said on Thursday.

The fertiliser company earned Rs17.110 billion profit with EPS of Rs13.45 in the year ended December 31, 2019.

A final cash dividend of Rs3.40/share was announced for the year ended December 31, 2020, which translates to 34 percent. This was in addition to interim dividend already paid at Rs7.80/share or 78 percent, notice to the Pakistan Stock Exchange said.

Analyst Sunny Kumar of Topline Securities said the company’s result clock in higher than consensus due to remeasurement gain on Gas Infrastructure Development Cess liability, which took full-year 2020 earnings up 22 percent YoY.

The analyst said that the final cash dividend was slightly lower than expectation of Rs3.75/share.

“It takes total cash dividend to Rs11.2/share in 2020,” he added.

FFC’s net turnover slipped more than 6 percent to Rs102.744 billion in the year 2020, from Rs109.817 billion in 2019.

Taurus Securities noted that on annual basis, the company’s gross margins clocked up 32 percent, rising 3ppts YoY, supported by better pricing dynamics. “Finally, the company also booked impairment of Rs1 billion on investments in FaujiFrensh N Freeze Limited in Q4CY20,” the brokerage noted.

FFC in a statement said it attained urea production of 2,487 thousand tonnes while theaggregate sales revenue for the year was Rs97.66 billion.

“Despite uncertain circumstances due to prevailing pandemic Covid-19, the company was able to achieve uninterrupted business operations while ensuring beststandards of health and safety for its employees,” the statement added.

ICI Pakistan profit climbs 32pc

ICI Pakistan profit jumped 32 percent to Rs2.434 billion in the half-year ended December 31 of fiscal year 2020/21, translating into EPS of Rs28.34, a notice issued to the PSX said.

The company earned Rs1.845 billion with EPS of Rs20.5 in the corresponding half during FY2019/20.

The company’s board has approved interim cash dividend in the financial year ending June 30, 2021 at Rs20/share of Rs10 each, which was 200 percent.

On a consolidated basis, including results of subsidiaries ICI Pakistan PowerGen and NutriCo Morinaga, net turnover was up 2 percent to Rs30,403 million for the six month period under review, compared to the same period last year.

The operating result was 9 percent higher at Rs3,756 million in comparison to the same period last year.

“These improved results were driven mainly through operational excellence across all businesses and lower finance cost compared to the same period last year, backed by improved cash generation resulting in significantly reduced debt levels and lower interest rates,” the company said in a statement.

Finance cost in the half-year was down 47 percent to Rs506.197 million, from Rs957.282 in the same period last year. Net turnover was up 2.2 percent at Rs30.402 billion, compared to Rs29.744 billion in the half year ended December 31, 2019.

ICI Pakistan ChiefExecutive Asif Jooma said, “The company has delivered robust results predicated onthe recovery of domestic demand.

Through continued focus on customer needs and asharpened emphasis on operational efficiencies, ICI Pakistan aspires to continuestrengthening its results to deliver on the Company’s promise of Cultivating Growth.”