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Company Profile - AGL: Key Data

AGL manufactures and markets fertilizers in Pakistan. It produces urea and phosphate fertilizers. In 2015, urea production increased 7% to 5.29 million tons due to improved gas availability from a new LNG terminal. However, urea sales were flat as lower prices reduced demand for major crops in the second half of 2015. Future outlook is positive as Pakistan has signed a long-term LNG supply deal and gas availability to fertilizer plants has substantially improved, allowing AGL to operate at optimal capacity going forward.

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76 views1 page

Company Profile - AGL: Key Data

AGL manufactures and markets fertilizers in Pakistan. It produces urea and phosphate fertilizers. In 2015, urea production increased 7% to 5.29 million tons due to improved gas availability from a new LNG terminal. However, urea sales were flat as lower prices reduced demand for major crops in the second half of 2015. Future outlook is positive as Pakistan has signed a long-term LNG supply deal and gas availability to fertilizer plants has substantially improved, allowing AGL to operate at optimal capacity going forward.

Uploaded by

Anas Adnan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Company Profile - AGL

KEY DATA
KATS CODE
Reuters Code
*Current Price PKR
Year 2015 High, Low PKR
Market Cap (PKRmn)
Market Cap (USmn)
Share Outstanding (mn)
Free Float (%)

AGL
RAAGL
13.24
14.54, 7.8
5195.77
51.96
392.43
294.32

Chart for: AGL for the Year: 2015

Source: PSX Data Portal

Introduction
Agritech Limited manufactures and markets fertilizers
in Pakistan. It provides urea and granulated single
super phosphate fertilizers. The company operates
through Urea Fertilizer and Phosphate Fertilizer
segments. The Urea Fertilizer segment produces urea
fertilizers and ammonia from natural gas. The
Phosphate Fertilizer segment offers phosphate
fertilizers from rock phosphate. Agritech Limited sells
its products under the brand name of Tara. The
company was formerly known as Pak-American
Fertilizers
Limited.
Agritech
Limited
was
incorporated in 1959 and is headquartered in Lahore,
Pakistan.
Industry overview
Urea production in the country witnessed a healthy
increase of 7% in 2015 at 5.29 million tons over 4.93
million tons in 2014. This is second straight year of
higher Urea production than preceding year,

highlighting better gas availability to the fertilizer


sector. The improvement in gas supply to fertilizer is
primarily attributed to the installation of first LNG
terminal and subsequent imports of LNG in the
country Urea off take during 2015 recorded a slight
reduction of 0.6% to 5.599 million tons vs. 5.632
million tons in 2014. However, further break down of
the offtakes revealed that Urea offtakes during the 1st
half of 2015 saw an increase of 12% and in 2nd half
of the year the offtakes declined keeping the full year
offtakes stagnant at 2014 level. Farm economics of
the major crops particularly of
Cotton, Rice (Kharif crops) and Potato (Rabi) were
badly affected due to low prices of these commodities
and resulted in lower consumption of urea in the
second half of 2015.
Future outlook.
GOP has formally signed a long term LNG supply
agreement for 15 years with the Government of Qatar
and import of LNG has seen significant increase after
the signing of this agreement. This increase in LNG
import has considerably increased the additional flow
of gas into the Sui companies system, particularly on
SNGPL system under Swap arrangement. Gas supply
to the fertilizer sector has substantially improved
whereby all urea plants, post winter curtailment, are
running at optimal capacity. Gas supply outlook to
AGL during 2016 and beyond looks promising as
AGL is well positioned to operate its plant on
increased flow of RLNG and domestic gas from
northern fields into the SNGPL system. Moreover, the
court decision in favor of the company on inclusion of
SSP in the phosphates subsidy and its successful
implementation will also help streamline the SSP
business of the Company.

EPS (PKR)
Book Value
(PKR/Share)
DPS (PKR)
P/E (x)
P/BV (x)
Dividend
Yield (%)

2011 2012 2013 2014 2015


72.96 54.03 53.11
5.59 53.79
127
141
118
89
105
59
-

40
-

62
-

44
0.25
0.12
3.32

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