FFC may post 6.4pc better profit

Ghulam Raza Rajani
KARACHI: Fauji Fertiliser Company (FFC) will announce financial results for the 1st half of CY10 today. The company is expected to post a profit after taxation of Rs 4.84 billion (EPS: Rs 7.13) against Rs4.54 billion (EPS: Rs 6.7), registering a surge in earnings of 6.4 per cent on year on year, according to research analysis of The Financial Daily (TFD).
Furthermore, we expect FFC to announce Rs3.25 cash dividend for 2QCY10 apart from 1QCY10 dividend per share (DPS) of Rs4.
We expect the sales of the company to stand at Rs19.1 billion in 1HCY10 as compared to Rs16.9 billion in the same period last year. This translates into a growth of 13 per cent YoY mainly on the back of high prices while volumetric sales would reflect downside of 7.94 per cent YoY. Other income of the company would improve by 10.7 per cent YoY to Rs1.73 billion in 1HCY10 versus Rs1.56 billion in 1HCY09.
FFBL dividend of Rs2.75 per share (DPS Rs2.25/4QCY09 & DPS Rs0.50/1QCY10) would support the bottomline while income from other investments would also grow. Gas allocation issue did not affect the production and profitability of the company. However, little production downside was witnessed, which would slow down the increment in topline for 1HCY10.