<ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">Fauji Fertilizer Company Limited (FFC) registered an EPS of
PKR 3.36 (earnings: PKR 4.3b) for 4QCY16, taking full year CY16 EPS to PKR 9.26
(earnings: PKR 11.8b). Alongside results, it announced a final DPS of PKR 2.75
taking CY16 DPS to PKR 7.9/share. Lower urea retention prices throughout the
year kept earnings muted. We expect urea price to further remain under pressure
on account of oversupplied urea market. However, regular exports of the
commodity would likely ease the prevailing and potential supply gluts. In a bid
to further diversify operations, the company is considering to invest in Thar
Energy Limited (TEL) taking over 30% of the equity stake (to be divested by
HUBC). We estimate that the project will cost PKR 3.9b to FFC which, if
finan...
