Islamabad: Fauji Fertilizer Company (FFC) announced a significant increase in its 1QCY26 earnings, marking a positive outlook driven by higher sales volumes and market share gains. The company reported consolidated earnings of Rs17.5 billion, an increase in earnings per share (EPS) from Rs9.33 in 1QCY25 to Rs12.14, alongside declaring a dividend of Rs8.5 per share.
According to JS Global, the revenue for the first quarter of the calendar year 2026 surged by 50% year on year, primarily due to higher sales volumes of urea and di-ammonium phosphate (DAP). Urea sales rose by 12% to 601,000 tons, boosting the company's market share by 9 percentage points to 58%. DAP sales saw an even more substantial increase, surging 105% to 181,000 tons, with market share also rising by 4 percentage points to 63%.
The company revealed plans for a 15-day turnaround of one of its urea plants in the third quarter of 2026. Despite challenges such as rising sulphur and phosphoric acid prices due to geopolitical disruptions, FFC's fertilizer business contributed 60% to its profitability, followed by investment income at 24% and dividend income at 16%.
Urea sales through the company's Sona Centers increased significantly, and FFC is enhancing these centers with additional farmer services like satellite support and soil and water testing. Trade discounts recorded in the first quarter were associated with pending orders from the previous year and have been withdrawn since January 2026.
FFC received Rs5 billion in dividends from Thar Energy Ltd and Rs2 billion from Askari Bank during the first quarter, alongside income from short-term investments. The consortium's call option to acquire an additional stake in Pakistan International Airlines (PIA) was exercised without changing FFC's shareholding, with a full takeover expected by May 2027.
The company acknowledged production losses due to RLNG supply disruptions at its FFBL plant, which led to a suspension of operations for about 1-1.5 months. However, with gas supply restored, the impact on sales is expected to be minimal due to sufficient inventory levels.