NFDC announces fertiliser production figures for 9MCY11


The NFDC has released the fertiliser production and off-take figures for September 2011. The key statistics for Urea and DAP are as follows
Urea: Urea off-take declined to 524k tons in September 2011 as compared to 556k tons in August 2011. Across the major manufacturers, urea off-take improved on the most part from last month, aside from Engro experiencing a steep drop FFC (202k tons vs. 203k tons), Engro (122k tons vs. 150k tons), FFBL (47k tons vs. 36k tons), and FATIMA (41k tons vs. 33k tons). On a YoY basis, Urea off-take has improved by 1.2 per cent in 9MCY11 compared to the same period last year. Urea retail prices stood at Rs1,611 per bag compared to Rs1,691 per bag in the previous month. Total urea production came in at 472k tons which was 2.6 per cent lower than the previous month’s total of 484k tons. 9MCY11 production is 2.4 per cent lower compared to the same period last year.
DAP: The September off-take jumped to 124k tons compared to 77k tons in the previous month. FFBL’s off-take rose to 68k tons from 50k tons in August 2011. The month also saw Engro’s sales grow to 39k tons from 20k tons. On a YoY basis, the 9MCY11 off-take is 5.2 per cent below the previous year’s level. FFBL’s DAP production dipped 25 per cent MoM from 64k tons to 48k tons.
reaping benefits: On the other hand, Fauji Fertiliser Bin Qasim Limited registered a revenue growth of 64 per cent mainly owing to the increase in Urea and DAP fertilisers. The company also witnessed a decline in cost to sales ratio as the cost did not increase in line with the hike in fertiliser prices hence resulting in an increase in gross profit margin to 37.87 per cent to Rs13.75 billion (106 per cent increase) in 9MCY11 as compared to the same period last year. The PBT margin increased from 19.40 per cent in 9MCY10 to 29.99 per cent in 9MCY11 with a 145 per cent increase in PAT from Rs2.93 billion in 9MCY10 to Rs7.16 billion in 9MCY11. All other costs and income such as administrative and distribution expenses, other income and charges increased as expected thereby indicating that the main reason behind the 145 per cent jump in 9MCY11 EPS of Rs7.68 per share was the hike in urea and DAP prices.