Fauji Fertilizer Bin Qasim (FFBL) held an analyst briefing on 10 May to apprise the investment community with details of its 1QCY10 results as well as the recent gas curtailment issue. During the quarter under review, the company posted earnings of PkR808.6mn (EPS-PkR0.87), a significant improvement over earnings of just PkR12.6mn (EPS-PkR0.01) in 1QCY09. The growth was achieved on account of i) better product prices compared to 1QCY09 and ii) substantially lower financial charges compared to last year, when the GoP had yet to clear subsidy dues. On the gas curtailment issue, management stated that they had been informed of a curtailment period of 100 days by the GoP i.e. till Jul 31’10. Prices have already been increased by PkR75 per bag in response to the price cut. Currently, we are in the process of revising our estimates for FFBL and will get back to investors shortly.