Fatima Fertilizer Co. Ltd. · PSX:FATIMA
Fatima Fertilizer — Q1 2012 Earnings Presentation
14 slides from Fatima Fertilizer's earnings presentation, May 9, 2012
Slide 1: Post Result Conference Call (May 9, 2012)
Post Result Conference Call (May 9, 2012) Presenters: • Muhammad Abdul Wahab – Chief Financial Officer • Ausaf Qureshi – Company Secretary • Faisal Khatri – Investor Relations Manager
Slide 2: First Quarter Summary
First Quarter Summary • Declared 1st Dividend at close 80% Relative stock price movement since COD FATIMA KSE‐100 of first 6 months of commercial 60% 40% operations 20% • Comparatively strong results 0% ‐20% despite external challenges • Margin maintained QoQ although lower volumetric sales • Decisi
Slide 3: Index
Index • Introduction – Introduction of the Company – Unique advantages – Product advantages • Calcium Ammonium Nitrate • NitroPhos • Company Financials – Financial highlights • Nitrogen Segment Result • Phosphate Segment Results • Business Outlook 3 CDM Plant
Slide 4: Fatima Fertilizer – Background
Fatima Fertilizer – Background • A green field project under the 2001 Fertilizer Policy with a project cost of USD750 million. • Joint venture between two prominent business houses of the country i.e. Fatima Group and Arif Habib Group. They also share equal ownership in Pakarab Fertilizers Limited •
Slide 5: Unique Advantages
Unique Advantages Natural Gas Advantage Nitro Phosphate Advantage • Fixed Tariff – USD 0.70 per MMBTU • Technological advantage – Lower cost 9 Gas Infrastructure Development Cess not 9 Capable to use variable grade of phosrock applicable, being covered under 2001 without compromising on nutrient Fer
Slide 6: Product Advantage
Product Advantage CAN – Benefit over Urea Neutral product; beneficial for our (Alkaline) soil Nutrient loss upto 10% vs 60% in Urea Equally effective in Water stressed areas Supplier of micro‐nutrient such as Potassium, Calcium, Magnesium, Sulfur and Copper NP – Benefit over DAP Highly acidic produc
Slide 7: Financial Highlights
Financial Highlights Rs in millions (except EPS and Debt to CY 2011* 2012 Q1 Equity) Sales 14,833 3,347 Gross profit 10,052 2,385 EBITDA 9,217 2,126 Finance cost 3,060 1,453 Taxation – Current 148 34 – Deferred 1,739 202 Profit after taxation 4,270 438 EPS 2.13 0.22 Debt to Equity 57:43 58:42 * post
Slide 8: Nitrogen Segment Results - Urea
Nitrogen Segment Results ‐ Urea Highlights during the quarter 2,000 1,800 • 103k tons Urea produced with utilization at 83% 1,600 • Urea offtake remained slow due to availability of imported Urea at lower price 1,400 • Our market share remained at 4% 1,200 • Product price remained flat at Rs1,790 pe
Slide 9: Nitrogen Segment Result - CAN
Nitrogen Segment Result ‐ CAN Highlights during the quarter 1,500 1,400 • 110k tons CAN produced with utilization at 105% 1,300 1,200 • Offtake remained slow due to availability of 1,100 imported Urea, being substitute, at lower price 1,000 • Our market share remained at 79% 900 800 • Product price
Slide 10: Phosphate Segment Result - NP
Phosphate Segment Result ‐ NP Highlights during the quarter 2,750 2,700 • 61k tons NP produced with utilization at 67% 2,650 2,600 • NP offtake was low, being seasonal dip and 2,550 expectation of price decline. 2,500 • Our market share remained at 34% 2,450 2,400 • Despite price decline, NP margins
Slide 11: Business Outlook
Business Outlook • Fertilizer manufacturers are expected to continue to face gas shortages. Fatima not impacted by National Gas grid curtailment. • So far, the government has imported ~700k tons of Urea • Another 300k tons of Urea import approved by ECC • At current international urea price, the imp
Slide 12: Fatima Group
LL ee a Fatina A group that makes perfect business sense Bt am Fatima Group
Slide 13: Financial Highlights (USD)
Financial Highlights USD in millions (except EPS and Debt to CY 2011* 2012 Q1 Equity) Sales 169 37 Gross profit 114 26 EBITDA 105 24 Finance cost 35 16 Taxation – Current 2 0.4 – Deferred 20 2 Profit after taxation 49 5 Earning per ADR* 1.215 0.122 Debt to Equity 57:43 58:42 * post COD financials on
Slide 14: Comparative Stock Performance Since March 2012 to Date
Comparative Stock Performance Since March 2012 to Date 20% ENGRO FFBL FFC FATIMA 4.36% 1.34% 2.23% 14.38% 15% 10% 5% 0% ‐5% ‐10% ‐15% ‐20% 29‐Feb 7‐Mar 14‐Mar 21‐Mar 28‐Mar 4‐Apr 11‐Apr 18‐Apr 25‐Apr 2‐May Appendix II