Karachi: Fauji Fertilizer Company Limited (FFC), Engro Fertilizers Ltd. (EFERT), Fauji Fertilizer Bin Qasim Limited (FFBL), and Fatima Fertilizer Co. Ltd. (FATIMA) have released their financial results for the second quarter of the fiscal year 2024, presenting a varied financial landscape influenced by factors such as maintenance shutdowns, urea price changes, and fluctuating sales volumes.

According to AKD Securities Limited, FFC reported a significant increase in its earnings with a profit after tax (PAT) of PKR 14.1 billion for 2QCY24, up 34% from the previous quarter, primarily due to higher urea prices and a strategic absence of imported urea sales. Despite unchanged gas prices, FFC raised its urea prices by 17%, which alongside a spike in DAP sales, cushioned the impact of decreased urea volumes on its revenue, which stood at PKR 59.8 billion. EFERT, on the other hand, experienced a substantial decrease in earnings, with its EPS dropping by 54% to PKR 3.7, largely due to an eight-week maintenance shutdown and a significant decline in urea and DAP sales.

FFBL's performance showed improvement with a 21% quarter-on-quarter rise in earnings, attributed to a strong surge in urea sales and improved gross margins, despite decreased DAP sales and increased operating expenses due to higher transportation costs. FATIMA's results reflected a downturn, with a 16% decline in earnings and a sharp reduction in sales volumes, particularly in urea and CAN.

The financial outcomes were also marked by dividends, with FFC announcing a dividend of PKR 8.0 per share for the quarter, bringing its half-year dividend to PKR 13.5 per share. EFERT is expected to distribute a quarterly dividend of PKR 3.5 per share, while FFBL and FATIMA announced half-year dividends of PKR 1.5 and PKR 3.0 per share, respectively.