LAHORE - National Fertilizer Development Corporation (NFDC) released fertilizer numbers for May-2018, wherein local urea sales depicted a slight attrition of 5 percent YoY to clock-in at 494,000 tons, in-line with estimates.

Cumulative sales for 5M2018 remained impressive, where industry offtake clocked-in at 2.1 million tonnes as compared to 1.6 million tonnes in the corresponding period last year, up by a healthy 29percent YoY. Fauji Fertilizer Bin Qasim Limited (FFBL) and Fauji Fertilizer Company (FFC) outperformed peers, with growth of 15 percent YoY and 14 percent YoY respectively, during the month.

However sales of Engro Fertilizer Limited (EFERT) declined, albeit by a mere 2 percent YoY. DAP sales during May-2018 dropped by 15 percent YoY to 69k tonnes, also in-line with our estimates. EFERT remained the star performer in the DAP segment, posting sales growth of 166 percent YoY. On the other hand, FFBL's DAP offtake witnessed attrition of 56 percent YoY. Inventory levels of both urea and DAP remained at comfortable levels, clocking-in at 329k tonnes and 387k tonnes, respectively.