Karachi October 28 2024: Fauji Fertilizer Company, the most valuable company at KSE100, skips dividend due to ongoing merger with Fauji Fertilizer Bin Qasim.
Share price of the company drops 4.20 percent after the announcement at Pakistan Stock Exchange.
“In view of the ongoing merger and to ensure equitable distribution of dividends to all the shareholders of the merged entity, no interim dividend has been announced by the Board. The Board however, remains committed to resume its payout trend upon successful completion of the amalgamation process” states company in its note.
The major factor of FFC performance is the exceptional return on investments which combined with dividend income stood at around Rs 25 billion.
Company plants produced 1,900 thousand tonnes of Sona Urea, operating at optimum capacity. Sona Urea sales were recorded at 1,864 thousand tonnes, along with marketing of 94 thousand tonnes of urea imported by the Government. The Company’s total urea sales stood at 1,958 thousand tonnes, reflecting an improved market share of 43%, compared to 39% during the same period last year.
The Company sold Sona Urea at much lower rates compared to international prices, leading to estimated benefit of USD 320 million for local farmers and preventing a significant outflow of the Country’s foreign currency reserves.
The Company achieved a net profit of Rs 42.6 billion, translating to earnings per share of Rs 33.45, up from Rs 17.46 per share during the same period last year.
Company’s initiative to provide farmers with easier access to our products at Company’s specified rates has demonstrated strong potential. We have successfully achieved opening of 70 Company owned sales outlets across the Country, and have registered approximately 50,000 farmers across Pakistan, covering a total land area of around 600 thousand acres to date.
