Engro Fertilizers urea sales plunge 43%

November 02, 2024 (MLN): Engro Fertilizers Limited's (PSX: EFERT) urea sales fell 43% to 99,000 tonnes in October compared to last year, according to data compiled by brokerage house Arif Habib Limited (AHL).

On a cumulative basis, urea sales in 10MCY24 dwindled by 25% to 1.42 million tonnes as compared to 1.899m in 10MCY23.

On the other hand, the company's DAP sales jumped 90% to 50,000 tonnes in October from SPLY and by 30% to 245,000 tonnes in 10MCY24.

Overall, the industry's fertilizer sales, including urea and DAP, inched up by 0.3% to 620,000 tonnes in October compared to 618,000 tonnes in the same month of last year.

The official monthly report on fertilizer offtake is usually issued by the National Fertilizer Development Company (NDFC) during mid of the month.

Urea

According to AHL's data, total industry's urea offtake fell 22.2% to 357,000 tonnes as against 459,000 tonnes in October 2023. On a MoM basis, urea sales also fell by 2.2%.

The decline was primarily due to weak agronomics, AHL said.

On a company-wise basis, urea offtake of EFERT and FATIMA reduced by 43% and 35% YoY, clocking in at 99,000 tonnes and 59,000 tonnes, respectively.

Meanwhile, the sales of FFC and FFBL Group remained stable at 179,000 tonnes on YoY basis.

In 10MCY24, offtake of EFERT and FATIMA decreased by 25% and 13% YoY, respectively settling at 1.421m tonnes and 680,000 tonnes, respectively.

Meanwhile, urea sales of FFC and FFBL registered a 2% YoY growth, reaching 2.403m tonnes.

DAP

DAP dispatches in October 2024 clocked in at 263,000 tonnes, significantly up by 66% YoY and 97% MoM amid pre-buying before the beginning of Rabi season.

With this, total offtake during 10MCY24 arrived at 1.193m tonnes, up 3% YoY.

On a company-specific basis, DAP sales of FFBL augmented by 64% YoY and 44% MoM, to 113,000 tonnes in October.

Similarly, FFC’s dispatches clocked in at 43,000 ton, up 87% YoY and 6x MoM.

Whereas, EFERT’s DAP offtake in October surged by 90% YoY and 3x MoM to arrive at 50,000 tonnes.

FATIMA Group’s DAP sales went up by 4x YoY and 5x MoM, settling at 8,000 tonnes in October.

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