LAHORE – The SNGPL-based plants including Agritech, DH Fertilizers, Pakarab, Engro’s new plant as well as SSGC-based FFBL lost profitability by 139 per cent and made a collective loss of Rs4.8 billion in nine months of 2012, whereas the same plants had made a profit of Rs12.3 billion in nine months of 2011.

The fertilizer manufacturers claim that in nine months of 2012, all SNGPL based plants and SSGC based FFBL faced a loss of revenue by 31% compared with nine months of 2011, generating Rs. 44.5 billion total revenue in nine months of 2012, compared to last years’ Rs. 64.3 billion rupees.

In first nine month of year 2012 all SNGPL based plants collectively suffered revenue loss of Rs. 10.1 billion vs the same period of 2011 due to gas curtailment and lower Urea sales. The total urea sales by SNGPL based plants during the period stood at 216,000 tons which is 346,000 tons less than 562,000 tons urea sold in nine months of 2011 showing a decline of 62%.

The total urea production by SNGPL based plants in first nine months of 2011 stood at 564,000 tons which declined by 60% to 226,000 tons in nine months of 2012. SNGPL based plants were only operated at 13% of their capacity in nine months of 2012 vs 33% last year.

According to a FMPAC official, SNGPL based plants are facing the worst-ever crisis of their history as gas outage in excess of 200 days in the first 9 months of a calendar year were never witnessed before 2012.

He said that despite making an investment over US$ 2.3 Billion on new production capacity, making Pakistan world’s 7th largest urea manufacturer country is sitting on an idle urea capacity of 2.7 Million Tons.

Fertilizer sector official said that if the same gas curtailment continues during 2013, the SNGPL based fertilizer plants would be forced to shut down permanently resulting laying off highly skilled manpower, in addition to huge burden on GoP exchequer, to import urea to meet the urea shortfall.

Fertilizer sector official said that it’s not just Fertilizer plants that will face the brunt, the whole farmers’ community as well as the government would be the ultimate losers if fertilizer plants with over 2 million tons of capacity are shutdown.