Pakistan's Fauji Bin Qasim Profit Increases 88% to $10.7 Million on Prices

Fauji Fertilizer Bin Qasim Ltd., Pakistan’s only producer of di-ammonium phosphate, reported an increase in second-quarter profit because of higher prices.

Net income rose to 913.4 million rupees ($10.7 million), or 0.98 rupee a share, in the three months ended June 30, from 485.3 million rupees, or 0.52 rupee, a year ago, the Rawalpindi- based company said in a statement to the Karachi Stock Exchange today. Revenue fell to 5.4 billion rupees from 9.1 billion rupees.

The price of di-ammonium phosphate rose to 2,600 rupees for a 50-kilogram bag, from 2,000 rupees in the previous quarter, according to Invest Capital & Securities Ltd. in Karachi.

The company also booked a profit of 122 million rupees from a joint venture compared with a loss of 315.2 million rupees a year ago, according to the statement. Fauji Fertilizer Bin Qasim has a joint venture with a Moroccan phosphate company.

Fauji Fertilizer Bin Qasim, which has risen 15 percent this year, rose 1.4 percent to 30 rupees as of 1:42 p.m. local time, on the Karachi Stock Exchange. It plans to pay a mid-year cash dividend of 1.30 rupees a share.

Fauji’s profit in the six months ended June 30 rose to 1.72 billion rupees from 497.9 million rupees a year ago, according to the statement. Sales fell to 11.9 billion rupees from 14.9 billion rupees a year ago.

To contact the reporter on this story: Khurrum Anis in Karachi at Kkhan14@bloomberg.net