ISLAMABAD: (APP) Despite volatile market conditions, Fauji Fertilizer Company (FFC) recorded net earnings of Rs. 4.89 billion for the period ended June 30, 2016.
These earnings were recorded, in spite of levy of 3% Super Tax and absorption of part of fertilizer subsidy announced by the government.
The FFC Wednesday announced half yearly results according to which the urea market witnessed a substantial decline of around 36% in sales, which is the lowest half yearly offtake in more than a decade.
Although, the core business of the company witnessed a significant decline due to many factors, however, the deficit has been bridged by highest ever dividend of Rs 2.27 billion received through associated companies.
The company earned Rs. 3.85 per share, while declaring divided per share of Rs 1.55.
The Company created a new benchmark during the period in terms of highest ever urea production of 1.25 million tonnes with lowest shut down periods which reflects operational excellence of company's engineers and the management.
FFC also achieved 12.6 million man-hours of safe operations without lost work injury.
The rising inventory and high cost of production continue to pose substantial risk to the Company's profitability however the management is committed to mitigate the negative impact of the current business environment through various strategies.