AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Islamabad: Fauji Fertilizer Company (FFC) held its Corporate Briefing Session today, revealing significant progress in its financial performance and strategic initiatives. The management highlighted its ongoing transition towards Shariah compliance, with expected reflection in the forthcoming quarterly statement. Additionally, the company is exploring a coal gasification project to leverage domestic coal reserves, though it remains in nascent stages.
The management anticipates industry urea offtakes to reach 6.3 million by the end of 2025, with inventory levels below 1 million. A rebound is expected in the first half of 2026 due to improved agricultural activity. No current plans exist for urea export discussions with the government.
During the third quarter of 2025, FFC’s urea and DAP offtakes rose by 42% and 27%, respectively, driven by enhanced farmer liquidity. The company’s inventory stood at 294,000 tons of urea and 110,000 tons of DAP, against the industry’s 1,162,000 tons and 380,000 tons, respectively.
Market share for FFC saw a decline in urea from 51% to 47%, while DAP market share grew from 66% to 69% over the first nine months of 2025. The company offered a Rs70 per bag discount on urea, undercutting competitor pricing.
The management discussed ongoing proposals for the industry to transition to the MARI gas network. Financially, FFC’s debt to equity ratio improved to 15%/85% by September 2025, compared to 19%/81% in December 2024.
Despite a 22% year-on-year drop in quarterly profits to Rs19.2 billion, nine-month earnings rose 14% to Rs57.6 billion. The company declared a third interim cash dividend of Rs9.5 per share, totaling Rs28.5 per share for the first nine months of 2025.
JS Global maintains a buy stance on FFC, citing a favorable 2026 forecast with a price-to-earnings ratio of 8.0x and a dividend yield of 9%.