Karachi, October 30, 2025 – Fauji Fertilizer Company Limited (FFC) shared key updates on its operational and financial performance during a corporate briefing on Tuesday, highlighting major progress toward full Shariah compliance, plans for energy diversification, and fertilizer demand projections through 2026.
Company officials confirmed that FFC’s transition to a fully Shariah-compliant corporate structure is in advanced stages, with the process expected to be reflected in its upcoming quarterly statement. “The transition is progressing smoothly and is only a matter of time before completion,” the management stated.
In a significant step toward energy diversification, FFC is assessing a coal gasification project aimed at utilizing Pakistan’s indigenous coal reserves to reduce reliance on natural gas. Management emphasized that the initiative is still in its feasibility phase, with cost estimates and implementation timelines yet to be determined.
Discussing market dynamics, the company projected national urea offtake to reach 6.3 million tons in 2025, with inventories expected to remain below 1 million tons by year-end. A recovery is anticipated in early 2026, driven by improved farm economics for key crops, particularly wheat and cotton.
During the third quarter of 2025, fertilizer demand showed strong momentum, with urea and DAP offtakes rising 42 percent and 27 percent quarter-on-quarter, respectively, supported by enhanced farmer liquidity. As of September 2025, FFC’s inventories stood at 294,000 tons of urea and 110,000 tons of DAP, compared to industry-wide levels of 1.16 million tons and 380,000 tons.
Market share trends indicated a slight decline in FFC’s urea share from 51 percent to 47 percent, while its DAP share increased from 66 percent to 69 percent during the nine months ended September 2025. The company offered a discount of PKR 70 per urea bag, slightly lower than competitor rates.
Management clarified that no talks are currently underway with the government regarding potential urea exports. However, a proposal to connect the fertilizer sector to the Mari gas network is under active review.
On the financial front, FFC posted an unconsolidated profit after tax of PKR 19.2 billion (EPS: PKR 13.5) for the third quarter of 2025 — down 22 percent year-on-year and 24 percent quarter-on-quarter. For the nine-month period, cumulative earnings rose 14 percent year-on-year to PKR 57.6 billion (EPS: PKR 40.5). The company declared a third interim dividend of PKR 9.5 per share, taking total dividends to PKR 28.5 per share, reflecting a 70 percent payout ratio.
FFC’s debt-to-equity ratio improved to 15:85 as of September 2025, compared to 19:81 at the end of 2024. Meanwhile, global phosphoric acid prices were quoted at USD 1,290 per metric ton.
Story by Muhammad Saqib
