KARACHI: Fauji Fertilizer Company Limited (FFC) has posted a 20 per cent increase in net profit to Rs35.69 billion, translating into the earnings per share (EPS) of Rs28.06 for the year ended December 31, 2021.

FFC also declared a final cash dividend of Rs4.65 along with the results, which is in addition to the interim dividend of Rs9.85 already paid to the shareholders.

“The dividend is higher than our expectation due to higher payout ratio amid improved liquidity, we believe,” an analyst at Sherman Securities said.

Net sales during 2021 clocked in at Rs114.34 billion, up 11.9 per cent given the 5 per cent and 67 per cent growth in urea and DAP prices, respectively.

Other income in 2021 surged 21.1 per cent to Rs6.3 billion. “Other income surged on account of higher income from cash and cash balances as well as dividend income from associate companies,” an analyst at Arif Habib Limited said.

Finance cost during the year under review surged 13.27 per cent to Rs2.73 billion due to higher interest rates and increased short term borrowings.