Karachi, Engro Fertilizer Limited (EFERT) has announced significant growth in its first-quarter results for the year 2024, with earnings per share increasing to PKR 8.1, up from PKR 3.3 in the same period last year. The company's performance was notably driven by a sharp increase in sales of specialty fertilizers and DAP.

According to AKD Securities Limited, the company reported a 47% increase in specialty fertilizer sales, totaling 140,000 tons, and an 84% growth in DAP sales, reaching 83,000 tons. EFERT also achieved a record-high quarterly Urea production of approximately 605,000 tons, with offtakes steady year-over-year at 548,000 tons. The cost of locally produced urea remains substantially lower than imported urea, priced at PKR 4,600 per bag compared to PKR 6,900.

Management detailed upcoming projects and operational adjustments during the briefing. The largest plant turnaround in the company's history, the "EnVen" plant, is scheduled for 55 days starting from April 22 to June 14, expected to impact production by 100,000 to 150,000 tons. The Pressure Enhancement Facility (PEF) project is progressing, with the first phase 74% complete and expected to finish by the end of 2024. The second phase is aimed for completion by the end of 2025.

Furthermore, to address a predicted demand gap, the government plans to import an additional 200,000 tons of urea, which will be distributed through local fertilizer companies. Management also highlighted financial strategies, including higher cash requirements due to the PEF project and imported urea uptake, while ensuring a balanced dividend policy and using debt to finance the PEF project to optimize capital costs.

Lastly, EFERT's management called for unified gas prices across the industry to eliminate cost disparities, pointing out that while players on the Sui network have seen gas price increases, those on the Mari network, including FFC and FATIMA, continue to enjoy previous rates.