KARACHI, July 24: Fauji Fertiliser Company Limited (FFC) is slated to declare financial results and payout for the second quarter of year 2012 on Wednesday. The board would sit to consider the figures and payout after the ‘Iftar’ on Tuesday evening.

The 2Q12 results would accompany the figures for the first half of the year. Investors have been anxiously waiting for the FFC results, for the announcement would be the first by a major company this reporting season and could be harbinger for the results lined-up for later in the week and the next.

Second, investors expect FFC to neutralise the ill effect of the earlier declared financials by the subsidiary, Fauji Fertiliser Bin Qasim (FFBL), which had announced 82 per cent plunge in after tax earnings to Rs644 million (earning per share at Re0.69). That fell short of the analysts’ consensus expectations and more importantly, the board skipped a dividend, which was a blow to investor sentiments.

For FFC, analysts at most brokerage houses were projecting jump of 32 to 35 per cent EPS at around Rs4.30 to Rs4.90. Much of the market is looking forward to a cash dividend for the second quarter at Rs3.50 to Rs4.50. That would add to the 30 per cent already paid in the first quarter.

Arif Habib

The company announced results for the year 2012 on Tuesday, posting a profit at Rs366 million, translated into eps at Rs8.13. It represented a jump out of the deep red of Rs559 million and the loss per share at Rs12.43, suffered the previous year.

The Board announced Rs3 per share dividend for the shareholders. The main items that turned the tide included surge in “capital gains on sale of investments” to Rs256m, from Rs4 million in 2011 and a huge jump in ‘gain on re-measurement of investments carried at fair value through profit & loss account, to Rs260 million, from Rs12m a year ago.

Other item that helped in turnaround was the decrease in ‘administration expenses’ to Rs210 million, from Rs930 million the previous year.