KARACHI: The Fauji Fertilizer Company (FFC) announced 1H2013 earning per share (eps) at Rs7.46, down 8 per cent over the eps at Rs8.12 in the same period last year.

The results were accompanied by second interim cash dividend at Rs3.75 that lifted the 1H2013 payout at Rs7.25.

Most analysts said that the company had announced higher than expected earnings and payouts.

Regardless of positive volumetric variance of 5pc in 1H2013 to 1.2 million tonnes, revenue of the company shrank by 5pc to Rs34 billion.

Asad I Siddiqui at Topline Securities observed that the average Rs100 per bag price decline in 1H2013 could be the main reason behind decrease in sales.

Rise in cost of inputs (feed and fuel gas prices) resulted in increase in the cost of goods sold that in effect exerted pressure on the company’s gross margin, which shrank by one per cent to 47pc in 1H2013 from 48pc in same period previous year.