Karachi: The Pakistani fertilizer sector witnessed a mixed performance in the second quarter of 2024, with a notable decrease in urea sales but an increase in DAP offtakes. Engro Fertilizers Ltd and Fauji Fertilizer Company reported significant declines in urea sales, attributed to operational downtimes and reduced demand. Conversely, DAP sales showed a substantial month-over-month increase, driven by strong performances from Fauji Fertilizer Bin Qasim Limited.

According to JS Global, urea sales in June 2024 are projected to reach 482,000 tons, marking a 21% year-over-year decline. The drop is primarily due to a 26% decrease in sales from Engro Fertilizers Ltd, whose Enven plant was offline for part of the quarter. Fauji Fertilizer Company is also expected to report lower urea sales at 201,000 tons, down from previous figures both year-over-year and month-over-month. DAP offtakes, however, are anticipated to hit around 127,000 tons for June, showing a 213% increase from the previous month, with Fauji Fertilizer Bin Qasim Limited leading as the sole manufacturer.

The fertilizer sector's gas price dynamics remain unchanged, with no updates on rate revisions from the Oil and Gas Regulatory Authority. This situation maintains a pricing disparity among producers, especially those with plants based on MARI gas, who are charged differently compared to others. The sector continues to offer stable dividends, with Fauji Fertilizer Company and Engro Fertilizers both showing significant gains in share value year-to-date.