Fauji Fertilizer’s four-week power outage likely to impact Urea production

KARACHI: Fauji Fertilizer Bin Qasim Limited (FFBL) announced a power outage that is expected to last for over four weeks. In a letter to the PSX, Company Secretary Brig Khurram Shahzada shared that the FFBL’s power supply from FFBL Power Company Limited (FPCL) has been disrupted due to a technical issue. 

It was said that as a result of the outage, FFBL’s operations are currently being managed through self-generated power and steam, which requires more expensive fuel. Moreover, the production of urea may be partially impacted, depending on the volume of natural gas available from SSGC. That being said, it was assured that FFBL’s DAP plant is still operating as usual.

The disclosure was made in the prescribed format by the Securities and Exchange Commission of Pakistan. Furthermore, in compliance with Section 96 and 131 of the Securities Act, 2015, and clause 5.6.1(a) of the PSX Rule Book of the Pakistan Stock Exchange, FFBL has requested the dissemination of this information to its members and TREC holders of the Exchange.

It seems that the company has been dealing with one crisis after the other. Late last year, in December 2022, FFBL announced the closure of its DAP (Di-ammonium Phosphate) fertilizer plant. This was decided in order to address the company’s inventory management problems, rooting from market demand and supply dynamics. The time period for this closure wasn’t clarified, unlike the recent power outage, whereby they have provided a tentative four-week period of using self-generated power and steam. It was, however, assured even back in December that FFBL’s urea plant will remain functional.

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