Fertilizer Giants Anticipate Earnings Rebound in Second Quarter

Lahore: Fauji Fertilizer Company Limited (FFC) and Engro Fertilizers Limited (EFERT) are projected to experience an uptick in earnings in the second quarter of 2025, driven by increased urea and DAP volumes, according to recent estimates.

FFC is expected to report earnings per share (EPS) of Rs14.5, with a dividend per share (DPS) of Rs11.25. Despite facing weaker sales, the company’s position remains favorable compared to its peers, benefiting from a lower gas tariff and increased dividend income.

EFERT is anticipated to show a recovery in earnings, overcoming last year’s challenges associated with the Enven plant turnaround. However, ongoing discounts and higher inventory levels may continue to affect operations. The company is projected to achieve an EPS of Rs4.6, marking a 3.7-fold increase year-over-year, alongside a DPS of Rs4.5.

While the sector faces short-term challenges due to inventory build-up, the long-term outlook remains positive. Improvements in quarterly dividend payouts and double-digit dividend yields are expected to keep both EFERT and FFC attractive to investors.

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