Fauji Fertilizer Company Limited (FFC) reported earnings per share of PKR 58.44 for CY25, compared to earnings per share of PKR 66.30 in CY24. Furthermore, in 4QCY25, the company reported earnings per share of PKR 15.14, compared to earnings per share of PKR 17.28 in the same period last year (SPLY). A bankable feasibility study for a coal gasification project has been completed. The company is currently working to secure coal sales agreements and water allocations, viewing this initiative as a critical alternative resource to reduce dependence on volatile gas supply.
The gas supply at the Port Qasim plant has been slightly reduced, resulting in a decline in production levels. The company has absorbed inflationary pressures and kept urea prices stable over the past 24 months. Additionally, a recent increase of PKR 55 in fuel prices has not yet been passed on to farmers. A key strategic initiative is the nationwide network of 244 operational Sona Centres.
These centres have registered approximately 118,000 farmers and currently serve around 1.7 million acres of cultivated land. The company leveraged its widespread dealer network to end CY25 with only 18% of total industry inventory, despite accounting for more than 40% of total production. The prevailing long market conditions are expected to persist through 1HCY26. Management is aggressively investing in plant efficiency projects that offer attractive IRR. One plant turnaround was successfully completed at the beginning of 2026, with another scheduled for September. Fauji Fertilizer Company is also a lead member of a consortium bidding for a 75% stake in Pakistan International Airlines. The total investment is projected at PKR 67 billion over a two year period.
Important Disclosures
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