What if the government increases FFC's gas price more?
Delve into the potential impact of increased gas prices on FFC's earnings, considering the company's unique position in the industry. Explore the dynamics of gas price differentials and their effect on profitability.
The last question to ask is, what if the government increases FFC's gas price more?
See in Feb'23 when the government was raising gas prices for everyone, they didn't do it for the FFC!
What if this time around, they raise it more for FFC and less for EFERT and FFBL?
So my question is, if that happens, will FFC's earnings come down?
Answer
Some analysts think that FFC's gas price will increase more than EFERT's or FFBL's. Why? Because FFC is the only company that is getting cheaper gas and making a hell of money!
See, the difference between FFC's and EFERT's gas price is approx Rs900/bag while the difference in urea price is just Rs200/bag!
This difference of Rs700/bag is pure profit.
So if only FFC's gas price goes up or goes up more than the industry, the new profits that we talked about in the first email, will shirk.
I am not saying all of this will go away, but it will be less than Rs14.4bn!
Let us see what happens! The gas price increase is right around the corner. This brings me to:
A Confession! See it took me more than 6 days to thoroughly explain to you what's happening in FFC.
But this was still just 50% of what I explained through the 26-minute video exclusively for the paid community members.
Now think about the number of emails you have to read to understand the Gas price increases and WACOG implementation's positive and negative impact on different companies - which is the title for our next short course.
* By the way, if the WACOG is implemented, it will be positive for EFERT! I will explain in the course.
These are things you should know if you are investing in OGDC, PPL, Fertilizers, chemical companies, etc.
If you like to have access to this short course, join the membership now! Try it for a month! If you are a learner like me, you will love it!
Founder at InvestKaar.com. 15 years of investing and wealth management experience. Worked at most renowned brokerage houses in Pakistan. Won the best sales trader award for 2021 by CFA Society of Pakistan.
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