Pakarab Fertilizers Chairman's Message
On behalf of the Board of Directors of Pakarab Fertilizers Limited, I am pleased to welcome you to the Company's website.
During the year 2017, the Company continued to face limited supply of gas coupled with escalation of RLNG prices on back of upward trend in Brent prices. Resultantly, Company’s operations were constrained to 210 days of operations in 2017 (2016: 193 days). The Production of CAN, NP and Urea as a percentage of annual designed capacity was 37%, 69% and 43% respectively.
During the year 2017, Company’s sales volumes improved CAN 212K MT, NP 210K MT and Urea 43K MT as compared to previous years’ volumes of CAN 171K MT, NP 193K MT and Urea 40K MT, however, due to macro-economic factors such as downward trend in fertilizer prices, the Company suffered a loss for the year.
In continuation of the strategic initiative to diversify Company’s revenue stream, 74,841 MT of imported DAP was sold during the year contributing positively to the otherwise negative bottom line.
In international markets, prices of Urea and DAP, after witnessing considerate drop in 2017 have shown recovery from beginning of 2018.
With continuity of farmer friendly government policies, fertilizer off take situation is expected to improve in 2018. PFL is committed to play its role in providing required nutrients to the farms through additional productivity, availability of inventories at all the products and enhanced plant efficiency and sustainability.
With rising RLNG cost due to upward trends in Brent prices and rupee devaluation, the management has been looking for alternate sources of natural gas at viable pricing. Resultantly, PFL has entered into an agreement with Mari Petroleum Company Limited (MPCL) to procure 75 mmcfd of gas from its Shallow and Deep reservoirs for a period of seven years, extendable based on gas availability.
ECC has already approved the allocation of 75 mmcfd to PFL in the meeting dated May 17, 2018. Management is very optimistic about the positive impact of this arrangement in the form of economic benefits as well as contribution towards availability of locally produced fertilizers.
Pakarab Fertilizers Limited
Page Last Updated: Wednesday, May 29, 2019