Flash Note Jan 27, 2011

Fertilizer Sector : FFC Results Update for CY10…

The Fauji Fertilizer Company Limited (FFC) has announced its annual
financial results for CY10 today. Higher than our expectations as FFC
has announced PAT of PRs11.03bn [EPS of PRs1625] in CY10 as
compared to PAT of PRs8.82bn EPS of PRs13.00] in the corresponding
period of last year, posting substantial growth of 25% on Y-o-Y basis.
The company has also announced PRs3.50 cash dividend and 25%
bonus shares along with the results. This sharp rise in bottom line was
owing to increased urea average per bag prices. Average per bag
prices for Urea were recorded 12.08% and higher than last year. This
upsurge in prices led FFC to post a sharp rise of 24.10% at its top line to
PRs44.87bn against PRs36.16bn last year. In addition to this, upsurge in
other income by 28.30% also well contributed to jack up the bottom
line.
Muhammad Sarfraz Abbasi
sarfraz.abbasi@atlascapital.com.pk Atlas Capital Markets (Pvt.)
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