FFC announces final results for CY22

January 30, 2023 (MLN): Fauji Fertilizer Company Limited (FFC) has announced its financial results for the year ended December 31, 2022, in its Board of Directors meeting held today, said a press release issued by the company.

The year 2022 was full of challenges ranging from socioeconomic, geopolitical, governmental, and environmental factors. The year witnessed galloping inflation, double-digit interest rates, and a sharp devaluation of the Pak Rupee besides heavy floods during the second half of the year, negatively impacting the costs of the company, the statement added. 

The profitability was further impacted by the levy of super-tax resulting in an effective tax rate of over 40%, besides the exemption of output GST.

Efficient treasury management and increased dividend payout by associated companies resulted in the highest-ever other income of Rs14.4 billion compared to Rs7.9bn last year.

This enabled the Company to achieve profitability of Rs20bn (despite a supertax levy of Rs5bn) with an EPS of Rs15.76 compared to Rs17.21 last year, it noted. 

The dollarized profitability of the company however declined by 29% to $97 million compared to $137 million last year.

As we step into 2023, the acute shortage of foreign currency reserves in the country poses severe challenges to the import of essential materials, spares, chemicals, and other inputs required for maintaining urea production levels.

In view of declining gas pressures, the company along with other fertilizer manufacturers and the gas supplier has undertaken a gas Pressure Enhancement Facility (PEF) project which involves significant capital outlay and is essential for sustained fertilizer production.

Therefore, the availability of foreign exchange is critical for the timely implementation of the sustainability project and continued plant operations.

The company also declared the final dividend of Rs3.15 per share, with an aggregate distribution of Rs12.13 per share for the year 2022, it revealed. 

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