Rawalpindi: Fauji Fertilizer Bin Qasim Limited (FFBL) reported a record profit after tax (PAT) of Rs. 10.6 billion for the first half of 2024, a significant turnaround from a loss of Rs. 4.9 billion during the same period last year. This milestone was announced following a board meeting held at the Fauji Foundation Head Office on July 25, 2024.
According to information available from the Pakistan Stock Exchange (PSX), the company credited its historic performance to stable economic conditions, a steady foreign exchange rate, and improved availability of gas, which enhanced the production of Diammonium Phosphate (DAP) and Urea. DAP sales increased to 351 thousand tonnes, including 24 thousand tonnes of imported product, up from 274 thousand tonnes last year. Urea sales also saw a rise to 216 thousand tonnes from 180 thousand tonnes in the prior year.
The management highlighted the support from the Government of Pakistan in maintaining gas supply at 74% of the allocated volume, up from 53% in the same period last year, which directly contributed to higher fertilizer production. Proactive working capital management led to a reduction in finance costs to Rs. 2.1 billion from Rs. 5.3 billion in the previous year, and other income streams such as bank deposit income and dividends also saw substantial increases.
On a consolidated basis, the group, including its joint ventures and associates, reported a profit after tax of Rs. 15.9 billion, compared to a loss of Rs. 3.2 billion in the previous period. This improvement reflects not only FFBL's own operational gains but also profitable contributions from its joint venture and associate companies.
The company also praised the Government's policy decisions, such as the continuation of sales tax exemptions on Urea and reduced rates on DAP, which are expected to bolster farm economics and promote the balanced use of fertilizers. The board emphasized the importance of consistent gas supply for the sustainability of the fertilizer sector and urged optimal allocation of indigenous gas resources to capitalize on this natural asset and mitigate risks to food security.
The detailed financial statements, as well as management discussions, have been made available in the company's half-yearly report for the period ending June 30, 2024. This comprehensive document has been transmitted through official channels to ensure full transparency with shareholders and market regulators.