Fauji Fertilizer Company Limited (FFC) has announced its financial results for the year ended December 31, 2023 in its Board of Directors meeting held on Friday.
The year 2023 faced high inflation and interest rates while the Pak Rupee also continued its downward trajectory against US dollar, resulting in higher operating and financing costs of the Company. The retrospective increase in Super Tax levy led to higher effective tax rate of 45% compared to 40% last year, further pressurizing Company profitability.
Gas prices for the fertilizer sector were also increased significantly by 75%, however, the Company only passed on a partial impact in urea price during 2023, to offer urea at most economical rates to the farmers.
Urea selling prices exhibited significant variations within the fertilizer industry, with FFC offering urea at lower selling prices by around Rs 200-500 per bag during most part of the year.
Sona urea prices towards the close of 2023 stood at around Rs 3,400 per bag in contrast to international prices hovering around Rs 6,200 per bag. FFC ensured fertilizer supply across the country through its nationwide network of warehouses and dealers, and also to avoid unscrupulous practices by some elements through equitable fertilizer distribution and real time monitoring fertilizer shipments and dealer stock. Dealerships were sensitized to market fertilizers at FFC suggested rates, while the farmers were also made aware to purchase product through registered dealers at prescribed rates. To further ease out urea availability and pricing issues for the farmers, the Company along with the Industry has coordinated a plan with Government to import urea and distribute it during 2024.
Urea production stood at an outstanding 2,521 thousand tonnes, 5% higher than last year while maintaining high reliability factors and optimum standards of Health, Safety and Environment.
