Karachi: Fauji Fertilizer Company Limited (FFC) is anticipated to continue its robust performance among its peers in the fertilizer industry for the third quarter of fiscal year 2024, driven by higher profit margins. The company is expected to report earnings per share (EPS) of Rs12.33, marking a 72% increase year-over-year. In contrast, Engro Fertilizers Limited (EFERT) and Fauji Fertilizer Bin Qasim Limited (FFBL) are forecasted to post EPS of Rs5.36 and Rs4.28, reflecting a 25% decrease and a 4% increase year-over-year, respectively.

According to JS Global, alongside its strong earnings, FFC is likely to declare a dividend of Rs9 per share for the quarter, which would bring its dividends for the first nine months of the year to Rs24.5. Although there are market speculations regarding a possible pause in dividend distributions due to an ongoing amalgamation process, regulatory conditions currently impose no restrictions on dividend payments. However, the lack of an interim dividend could negatively impact FFC’s stock price performance.

In addition, EFERT is expected to announce a dividend of Rs5.5 per share for the third quarter, totaling Rs16.5 for the first nine months. No interim dividend is anticipated from FFBL for this quarter.

FFC and EFERT have significantly outperformed the KSE100 Index in the year to date, recording gains of 119% and 81%, respectively. The ongoing amalgamation of FFBL into FFC and FFC’s advantageous gas tariffs for MARI connections are expected to keep FFC prominently in the market spotlight.