Chairman's Message

Fatima Fertilizer Company Limited has a bright future and the company looks forward to growth in volume and return for its investors.

On behalf of the Board of Directors of Fatima Fertilizer Company Limited, I welcome you to the Company’s website.

2017 was another stellar year for Fatima Fertilizer Company Limited which performed better than its other industry competitors on most key indicators. Besides sustained revenue growth, your Company has begun to reap benefits from its productivity and efficiency enhancement initiatives. The Marketing, Sales and Technical services teams are to be congratulated for the success of their value added fertilizers campaign, which promoted higher crop yields and therefore farmer prosperity. Revenue increased by 11% over last year despite pricing pressures. We continue to be proud of our manufacturing excellence, and saw another year of focus on efficiency and high HSE standards. We hope that Government will reinforce its policies to make Pakistan’s agriculture sector more viable, thereby improving farmers’ economics and bringing prosperity to rural communities. At the same time, our drive to promote and modernize usage of balanced and optimal fertilizers will continue and we look forward to achieving higher agronomic standards in the Country.

Market Overview

Farmer economics in 2017 remained positive owing to continuation of farmer friendly Government policies. Local offtake of Urea grew by 7% to close at 5.85 million MT as compared to 5.50 million MT in 2016. Due to availability of sufficient inventories, Government took an encouraging initiative and allowed export of 600,000 MTs of Urea. This initiative proved extremely favorable, generating highly coveted foreign exchange for the Country. CAN continued to increase its acceptance amongst the farmers. Offtake of CAN grew by 33% to close at 731K MT compared to 550K MT in 2016.

On the Phosphates side, due to favorable market prices, in 2017 DAP offtake was highest in the history, as it increased by 8% to close at 2.40 million MT. With 623K MT, Offtake of NP remained almost in line with last year.

Company Performance

The Company entered the year strengthened by laurels of 2016 where it achieved the highest ever volumes of production and sales. This year sales volumes further improved as the Company made history by comfortably beating last year sales volume by no less than 22.5%. The production was, however, slightly lower due to turnaround activity during the year.

The outstanding sale volumes were achieved through robust campaigning for CAN and NP enabling the farmers to get extra benefits from usage of balanced nutrients. CAN was the star performer with highest ever sales volume, posting increase of 42%. The Company exported 107,866MT of Urea, helping in generation of much needed foreign exchange for the Country.

Acknowledgement

The Board places on record its gratitude for the hard work and dedication of every employee of the Company. The Board also appreciates and acknowledges the assistance, guidance and cooperation of all stakeholders including the Government of Pakistan, financial institutions, commercial banks, business associates, customers and all others whose efforts and contributions strengthened the Company.

Arif Habib
Chairman
Fatima Fertilizer Company Limited

Page Last Updated: Tuesday, October 30, 2018