Lahore, Several prominent Pakistani companies in the fertilizer and chemical sectors are set to announce their first quarter 2024 (1QCY24) earnings results, with mixed expectations for their performances.
According to AKD Securities Limited, Fauji Fertilizer Company Limited (FFC) is scheduled to announce its 1QCY24 earnings on April 29. The company is expected to report a net profit after tax (NPAT) of PKR 10.8 billion, with earnings per share (EPS) of PKR 8.5. This would represent a 44% increase compared to the previous quarter, primarily due to higher other income driven by dividend income from subsidiaries and associates. The projected topline for the quarter is PKR 54.0 billion, a 24% increase from the previous quarter. However, gross margins are expected to contract to 29% due to inclusion of imported urea sold at negative margins. FFC's finance costs are anticipated to increase by 26% due to higher borrowings, and the company is expected to announce a first-quarter cash dividend of PKR 6.0 per share.
Fauji Fertilizer Bin Qasim Limited (FFBL) is expected to announce its 1QCY24 earnings with an NPAT of PKR 4.3 billion (EPS: PKR 3.4), reflecting a 7% increase from the previous quarter. This boost is primarily due to a normalized tax charge during the quarter, contrasting with one-time tax adjustments in the previous quarter. However, topline revenue is expected to decline by 21% due to reduced offtakes of DAP and urea. Gross margins are expected to contract to 23.6%, driven by upward adjustments in gas pricing, while finance costs are projected to increase by 49% due to heightened borrowings.
Fatima Fertilizer Company Limited (FATIMA) is scheduled to announce its 1QCY24 results on April 29, with an expected NPAT of PKR 9.1 billion (EPS: PKR 3.9). This reflects a 10% decline compared to the previous quarter, due to lower other income and a contraction in gross margins. The company's revenue is projected to decline by 20% because of lower sales volumes, with sales of urea, NP, and DAP falling significantly. Gross margins are anticipated to be lower at 24.3%, partly due to higher weighted average gas prices.
Pakistan Oilfields Limited (POL) will also announce its 1QCY24 results with expected earnings of PKR 7.99 billion (EPS: PKR 28.1). This projection indicates a largely flat performance compared to the previous quarter, but a 51% decrease year-over-year. The decline is primarily due to the absence of exchange gains and an increase in exchange losses. Hydrocarbon production is expected to stabilize at previous quarter levels, with oil and gas outputs expected to maintain steady figures.
These earnings reports reveal varying trends in the Pakistani fertilizer and chemical sectors, indicating fluctuations due to changes in gas prices, sales volumes, and other income sources.