Fauji Fertilizer and Engro Fertilizers to Maintain Dividends Amid Sector Challenges

KARACHI: Fauji Fertilizer Company Limited (FFC) and Engro Fertilizers Limited (EFERT) are set to announce quarterly dividends for the third quarter of calendar year 2025, despite facing industry-related headwinds. According to estimates, FFC is expected to declare a dividend per share (DPS) of Rs12, while EFERT’s dividend per share is anticipated at Rs5.5.

FFC’s earnings per share (EPS) are projected at Rs16.5, reflecting a 4% year-on-year decline. This decrease is attributed to lower other income and a previous year’s strong performance by Fauji Fertilizer Bin Qasim Limited (FFBL). However, the company is likely to report year-on-year growth in Urea and DAP volumes by 14% and 11%, respectively.

EFERT is projected to report earnings of Rs7 billion for the quarter, resulting in an EPS of Rs5.4, marking a 17% decline from the previous year. Despite a recovery in Urea volume compared to last year, EFERT is expected to face pressure due to sustained Urea discounts and increased financial and distribution expenses.

The fertilizer sector is dealing with challenges such as inventory buildup, but the long-term prospects remain positive. The possibility of Urea exports to manage the current inventory surplus presents a potential opportunity amid reduced domestic demand.

These projections stem from analysis provided by JS Global, which maintains a cautiously optimistic outlook for the sector’s future performance.