FFC Earnings Impacted by Merger Adjustments, Future Outlook Stable

Karachi: Fauji Fertilizer Company Ltd. (FFC) has reported its fourth-quarter earnings following the completion of its merger with Fauji Fertilizer Bin Qasim Limited (FFBL). The earnings for the merged entity amounted to Rs65 billion, translating into a diluted earnings per share (EPS) of Rs45.49. The company also announced a cash dividend of Rs21 per share, bringing the cumulative dividend for the calendar year 2024 to Rs34.9 per share.

According to a statement by JS Global, FFC recently held a corporate briefing session to discuss the results and future outlook for the newly merged entity. During the session, the management addressed that audit adjustments related to receivables from sales tax and subsidies had adversely impacted profit margins in the last quarter. However, the company expects margins to stabilize around 34% in the upcoming quarters.

Additionally, the management reported progress on the turnaround of the Port Qasim plant, previously owned by FFBL, which is nearing completion. A turnaround at the base plant is scheduled for this month, with another planned for October 2025. The management also confirmed that the gas supply agreement with MARI will remain in effect until 2029, reaffirming confidence in FFC’s future prospects, including an estimated dividend yield of 13% for the year 2025.

The developments reflect FFC’s strategic measures to optimize operations and maintain a steady outlook despite recent financial adjustments.

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