Urea price up by Rs 210 per bag
KARACHI: Engro Fertilizers has raised urea prices by Rs 210 per bag to Rs 1790 in response to 207 percent increase in feedstock and 17 percent increase in fuel gas prices notified in January 2012.
According to market research sources here on Friday, Fauji Fertilizer Company (FFC) had already raised urea prices by Rs 50 per bag last month. After this increase, FFC is also expected to notify another increase of Rs 160 per bag to match the industry prices.
An analyst at KASB Securities and Economics Research said that market was already anticipating the industry to pass-on partial impact of cess after subtracting Rs 100 per bag increase in December 11.
"We maintain our earning per share (EPS) estimates and PO for FFC (Rs 207/sh). Any further hike in urea price over and above cost increase suggests upside risk to our estimates for FFC", he added.
Copyright APP (Associated Press of Pakistan), 2011
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