Engro reduces DAP prices
Staff Report
ISLAMABAD: Engro Fertilizers Limited has announced a reduction in DAP (di-ammonium phosphate) prices by Rs 310 per bag from Rs 4,060 to Rs 3,750 per bag, following reduction in international prices, effective immediately.
International prices have reduced from approximately $700 to $610 per tonnn, said Mohammed Khalid Mir, VP Marketing, Engro Fertilizers Limited.
He said this reduction would be a relief to the farming community which has been faced with rising fertilizer and agri-inputs prices and would make fertilizer affordable for upcoming season of sugarcane, cotton and maize crops.
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6
ENGRO -- Engro Chemical Pakistan Ltd.
Started by AbDuLmAtEeNkHaN, Sep 27 2006 06:17 AM
ENGRO Engro Chemical Pakistan
1433 replies to this topic
#1250
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Posted 23 February 2012 - 12:09 PM
ENGRO reduces DAP price by PkR310/bag
Engro has reportedly decreased DAP prices by PkR310/bag, bringing it down to PkR3,750/bag (ex-GST PkR 3,233/bag). The decision has been taken on the back of steep decline in int’l DAP prices. FFBL, the sole DAP manufacturer in the country, is likely to follow suit. Regarding FFBL, we have already accounted for lower DAP prices in CY12F and in this regard we have assumed average DAP-phosacid primary margins of US$200/ton compared with an average of ~US$288/ton in CY11.
Near term outlook for FFBL is negative given i) very weak 1QCY12 earnings (EPS: ~PkR0.4-PkR0.5) due to plant shutdown and lower DAP-phosacid margins (higher priced carryover phosacid inventory) and ii) seasonal dip in DAP sales (1H accounts for just 24% of annual DAP sales), which should in our view result in relatively weak price performance. However, long term fundamentals of FFBL remain positive as lower DAP prices should stimulate sales going forward, while input phosacid prices are also expected to fall in line with global DAP prices. Furthermore, FFBL enjoys production flexibility, giving it the option to allocate more gas towards the higher margin product (urea or DAP). At current levels we have an Accumulate stance on FFBL (CY12F dividend yield of 15.1%) based on our target price of PkR49/share.
(AKD)
Engro has reportedly decreased DAP prices by PkR310/bag, bringing it down to PkR3,750/bag (ex-GST PkR 3,233/bag). The decision has been taken on the back of steep decline in int’l DAP prices. FFBL, the sole DAP manufacturer in the country, is likely to follow suit. Regarding FFBL, we have already accounted for lower DAP prices in CY12F and in this regard we have assumed average DAP-phosacid primary margins of US$200/ton compared with an average of ~US$288/ton in CY11.
Near term outlook for FFBL is negative given i) very weak 1QCY12 earnings (EPS: ~PkR0.4-PkR0.5) due to plant shutdown and lower DAP-phosacid margins (higher priced carryover phosacid inventory) and ii) seasonal dip in DAP sales (1H accounts for just 24% of annual DAP sales), which should in our view result in relatively weak price performance. However, long term fundamentals of FFBL remain positive as lower DAP prices should stimulate sales going forward, while input phosacid prices are also expected to fall in line with global DAP prices. Furthermore, FFBL enjoys production flexibility, giving it the option to allocate more gas towards the higher margin product (urea or DAP). At current levels we have an Accumulate stance on FFBL (CY12F dividend yield of 15.1%) based on our target price of PkR49/share.
(AKD)
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#1251
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Posted 24 February 2012 - 10:13 AM
MasshAllah jis speed say ja raha hay cap tu banta hay 
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#1252
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Posted 24 February 2012 - 10:44 AM
main nay tu apna ... ENGRO at 138.48 (upper cap ) pay laga diya hay ..
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#1253
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Posted 24 February 2012 - 10:53 AM
Good Luck Amin Bro.....
#1254
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Posted 24 February 2012 - 11:00 AM
Naveed Memon, on 24 February 2012 - 10:53 AM, said:
Good Luck Amin Bro.....
Thanks dear
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