Karachi, 11 Oct 2023:IGI Securities Limited projects a substantial year-over-year elevation in the 3QCY23 earnings of the IGI Fertilizer universe, with figures anticipated to rise to PKR 21.6bn, a +2.8x leap from PKR 6.9bn during the same period the previous year. A cocktail of factors, such as ascended fertilizer prices and robust offtake, is recognized as propelling this earnings accretion. Sequentially viewed, the earnings are set to mark a +3.1x elevation, primarily attributed to an escalated tax expense in 2QCY23 due to the imposition of super tax on CY22 income.

Engro Fertilizers Limited (EFERT) is due to conduct a board meeting on the 12th of October, 2023, with anticipations set for the company to disclose a 3QCY23 earnings report of PKR 7.51bn (EPS: PKR 5.62), reflecting a +79%y/y enhancement. Various elements such as higher retention prices and augmented offtake are credited for the yearly rise during 3QCY23, although a potential dampener in the form of elevated finance cost is anticipated to impose a constraint on the earnings growth.

In contrast, Fauji Fertilizer Company Limited (FFC) is expected to reveal earnings of PKR 1.26bn (EPS: PKR 3.44), indicating a rise by +32%y/y, compared to PKR 0.96bn (EPS: PKR 2.61) during the same interval the preceding year. The earnings during 3QCY23 are believed to have been uplifted by factors such as static gas prices charged at older rates, an upswing in retention prices, and a surge in offtake, cumulating the total 9MCY23 profitability to PKR 22.84bn (EPS PKR 17.96), a 54%y/y increase.

Scheduled to hold its board meeting on the 24th of October, 2023, Fauji Fertilizer Bin Qasim Limited (FFBL) is forecasted to post earnings of PKR 4.36bn (EPS: PKR 3.38) for 3QCY23, starkly contrasting the loss of PKR 1.70bn (LPS: PKR 1.31) recorded during the analogous period last year. The escalation in earnings during 3QCY23 is attributed to the absence of exchange losses and amplified margins resulting from price hikes, notwithstanding the anticipated restrictions posed by a higher finance cost. Consequently, the total 9MCY23 loss is projected to be PKR 0.59bn (LPS PKR 0.46).

While positive strides are evident in the sector, the confluence of factors including pricing, offtake, tax expenses, and financial management, continues to intricately weave the financial tapestry of these companies in the dynamic economic landscape.