Closing Inventory Estimates (Dec-25)
| Company | Inventory | Strategic Meaning |
|---|---|---|
| FATIMA | ~135k tons | Highest pricing leverage |
| EFERT | ~88k tons | Balanced volume + cost play |
| FFC | ~56k tons | Lowest pricing torque |
When inventories are elevated, producers are forced to discount.
When inventories normalize, pricing power returns.
This creates a structural distinction:
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FATIMA gains the most from pricing normalization
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EFERT benefits steadily via cost control and scale
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FFC benefits least, but remains the most stable
This inventory asymmetry explains why FATIMA shows sharper earnings swings, while EFERT and FFC trade more defensively.
Gas Policy: Where Fertilizer Earnings Are Actually Made
Fertilizer profitability in Pakistan is fundamentally a gas-pricing and certainty story.
Engro Fertilizers (EFERT): What Changed — and What Didn’t
Based on PSX disclosures and broker research:
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105 MMSCFD allocated from Mari HRL reservoir
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Shift from as-available to firm supply
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Backup supply approved via Mari Energies if HRL depletes
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~31 MMSCFD at PKR 580/mmbtu
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Balance at PP-12 pricing
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Weighted feed gas cost ~PKR 1,400/mmbtu (CY26F)
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~5% lower than previous estimates
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Gross margin uplift ~60bps
Crucially, this is not entirely new feed gas.
EFERT already operated with preferential access.
What this decision does is convert uncertainty into certainty.
Interpretation
