LAHORE -FFBL has posted earnings of Rs 4.3b, down 60 per cent YoY. Along with the result, the company also announced a final cash dividend of Rs 2.25 per share. This is in addition to Rs 2.25/share interim dividend announced earlier in the year, taking the full year 2012 dividend to Rs 4.5/share.

The topline has declined by 14 per cent YoY to Rs47.9b, where pick up in DAP off-take (Oct-Nov: 169k tons) has somewhat mitigated the impact of FFBL’s record low urea sales, led by the ongoing gas shortfall on the Sui South (SSGC) network.

Reportedly, Phosacid contract price for 1Q2013 has been finalized for India at $770/ton, down $85/ton from $855/ton previously. For FFBL, it will translate into DAP primary margin of $320/ton from $280/ton in 4Q2012.

 This is expected to bode well for the company, however, it is expected that FFBL’s plant is expected to remain un-operational for a good part of 1Q2013 and the cut in phosacid price is likely to dent Pak Moroc’s profitability.