KARACHI: Fauji Fertilizer Company Limited (FFC) shared key operational and financial insights during its corporate briefing on Tuesday, outlining progress on Shariah compliance, plans for energy diversification, and expectations for fertilizer demand through 2026.
Company management confirmed that FFC has made tangible progress toward conversion to a fully Shariah-compliant structure, with details expected to be reflected in its upcoming quarterly statement scheduled for release on October 30. The management said the transition is advancing smoothly and is “only a matter of time before completion.”
In a move to reduce dependence on natural gas, FFC is evaluating a coal gasification project that would leverage Pakistan’s domestic coal reserves. Management described the initiative as being in its early stages, adding that no cost estimates or implementation timelines have yet been finalized.
Discussing market dynamics, management projected industry-wide urea offtake to reach 6.3 million tons in 2025, with inventories expected to stay below 1 million tons by year-end. A rebound is anticipated in the first half of 2026, supported by improved farm economics for wheat and cotton crops.
company reported a significant pickup in fertilizer demand during the third quarter of 2025, with urea and DAP offtakes rising 42 percent and 27 percent quarter-on-quarter, respectively, on the back of improved farmer liquidity. As of September 2025, FFC’s own inventories stood at 294,000 tons of urea and 110,000 tons of DAP, compared to industry-wide stocks of 1.16 million tons and 380,000 tons, respectively.
Market share trends showed FFC’s urea share declining from 51 percent to 47 percent, while its DAP share increased from 66 percent to 69 percent during the nine months ended September 2025. The company also offered a discount of PKR 70 per bag on urea during the quarter — lower than that offered by competitors.
Management said no discussions are currently under way with the government regarding urea exports. They also confirmed that a proposal to connect the fertilizer sector to the Mari gas network is under review.
On the financial front, FFC reported unconsolidated profit after tax of PKR 19.2 billion (earnings per share: PKR 13.5) for the third quarter of 2025, down 22 percent year-on-year and 24 percent quarter-on-quarter. Cumulative earnings for the nine months stood at PKR 57.6 billion (EPS: PKR 40.5), reflecting a 14 percent increase year-on-year. The company also declared a third interim dividend of PKR 9.5 per share, bringing total dividends for the period to PKR 28.5 per share, with a payout ratio of 70 percent.
The FFC’s debt-to-equity ratio improved to 15:85 as of September 2025, compared to 19:81 at the end of 2024. Meanwhile, phosphoric acid prices were quoted at USD 1,290 per metric ton in the international market.
Copyright Business Recorder, 2025
