LAHORE - Fauji Fertilizer Bin Qasim Limited (FFBL) has announced financial result for 1H2012, reporting a profit after tax of Rs 644 million compared to PAT of Rs3,514 million in the same period last year. In 2Q alone, the earnings are reported at Rs1,031 million, down 47 per cent YoY. FFBL has not announced any interim cash dividend that is against the market consensus expectations.
The demand was revived in the later part of 2Q on the back of the price cut strategy and expectations of higher urea prices going forward. Hence, offtake figures have shown some respectability in 2Q. However, to meet the running finance requirements of the company, the finance cost has risen to Rs604mn, up 127%YoY. FFBL is currently trading at a 2012E PE of 6.3x and offers a dividend yield of 13.8%.