Karachi, Leading Pakistani fertilizer companies - ENGRO, FFBL, and FFC - are gearing up to announce their third-quarter results. Forecasts based on research suggest favourable performances across these corporations, characterized by robust earnings, increased revenues, and expected dividend declarations.

According to a research report by AKD Securities Limited, ENGRO is poised to announce its consolidated 3QCY23 results today. The projected profit after tax (PAT) attributable to the company is PkR12.1bn, translating to an earnings per share (EPS) of PkR22.57. A surge in the company's top line, which is expected to reach PkR130.5bn, can be attributed to remarkable performances by its subsidiaries, EFERT and EPCL. Notably, Engro ELENGY likely benefited from a rise in LNG imports during this quarter. ENGRO is also anticipated to declare a dividend of PkR2 per share, consistent with the last quarter. This expected declaration will bring the total dividend for the first nine months of 2023 to PkR44 per share.

FFBL's 3QCY23 results, scheduled for announcement on October 24th, are expected to reflect a shift from previous underwhelming performances. Analysts predict an EPS of PkR3.45 and revenues reaching PkR70.1bn, marking a 99% quarterly rise. This projected increase stems from enhanced DAP offtakes and several price escalations for both DAP and urea. Despite an expected drop in other income due to the lack of dividend income, the financials remain solid, backed by steady cash inflows and borrowings.

Lastly, FFC is set to release its 3QCY23 earnings on October 25th, with projections indicating an EPS of PkR7.49. This estimate suggests an approximately 78% earnings boost. Driving factors include elevated retention prices, and increased sales of both urea and DAP, while gas prices have remained stable. Gross margins are anticipated to stay elevated around 45%. Another expected highlight is the rise in net margins to 23% from 15% in the previous quarter, primarily due to the standardization of tax measures. The firm is also likely to declare a PkR6.75 per share dividend for this quarter, aggregating to a PkR14.16 per share dividend for the first nine months of 2023.