Fauji Fertilizers Announced Double Profits in a meeting held in Spain
By Maliha Sheikh (Lahore)
This is unusual. Not the profits but the venue to announce it.
Fauji Fertilizer Bin Qasim, a giant in fertilizer sector, profits more than doubled to Rs7.2 billion in the first nine months of 2011 on the back of higher sales of the commodity, according to a notice sent to the Karachi Stock Exchange on Wednesday.
The board of directors in a meeting held in Madrid, Spain also announced interim cash dividend of Rs3 per share, taking the total payout to Rs6.5 per ordinary Rs10 share in 2011.
Substantial growth in earnings was because of massive increase in fertilizer prices, said Summit Capital analyst Sarfraz Abbasi. Fertilisers DAP and urea prices in market were, on average, higher by 47% and 56% on a yearly basis, respectively.
Net sales rose 64% to Rs36.33 billion during January to September 2011 compared with Rs22 billion in the same period last year.
Another effervescent factor was higher other operating income which rose by 33% to Rs1.09 billion, added Abbasi. Other income contributed 15% share in total earnings of the company.
On the other hand, financial charges of the company witnessed a slender increase of 5% to Rs756 million against Rs720 million in the same period last year.