January 30, 2023 (MLN): Fauji Fertilizer Bin Qasim Limited (PSX: FFBL) is all set to launch Boron Fortified DAP during CY24 which will prove to be a value-added excellence to the agriculture sector, the management of the company revealed during the corporate briefing session on Monday.
Boron (B) is an essential micronutrient for plant growth and development and Boron Fortified Phosphatic Fertilizers are being used globally to overcome Boron deficiency.
In Pakistan, about 60% of the soils are deficient in Boron and this deficiency results in yield loss, especially in wheat.
The presence of Boron with DAP has a synergistic effect, which increases yield and contributes to more sustainable agricultural practices by mitigating environmental impacts related to nutrient runoff.
Under the auspices of the Special Facilitation Investment Committee (SIFC) and its Green Pakistan Initiative (GPI), the agriculture sector has been identified as the flagship sector in the overall economic recovery plan and FFBL is well positioned to capitalize on opportunities, the management further highlighted.
About the impact of the gas price hike, the management said that they are trying their best to mitigate the impact of any gas price hike by passing it on to consumers. However, it is quite challenging due to the imported amount.
In repose to a query regarding the higher cash position, the management clarified the future sales order book, along with an upsurge in creditor payables.
In addition, the management is of the view that borrowing will likely increase with the buildup of DAP inventory.
On the dividend front, the management informed that they do not foresee any dividend coming in from Pakistan Maroc Phosphore S. A (PMP) Morocco this year as the company did not make any substantial profits.
FFBL is the only fertilizer plant on SSGC network and experienced a notable decrease in production throughout the year, primarily attributed to substantial gas curtailment, the management added.
The house was also apprised of the financial performance of the company.
FFBL has wrapped up 2023 in green as its profitability clocks in at Rs4.15 billion [EPS: Rs2.35]. However, the bottom line has shrunk by 48% YoY as compared to Rs8bn profits in 2022.
This drop is primarily attributed to the loss in PMP, which is affected by international commodity price trends i.e. high decrease in phosphoric acid price as compared to its raw material prices.
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Posted on: 2024-01-30T15:02:53+05:00
