Karachi, February 6, 2024 – Attock Petroleum Limited (APL) announced a substantial 41% growth in profit for the first half (July – December) of the fiscal year 2023-24, showcasing robust financial performance and strategic resilience in a dynamic market.
According to research analysts at Arif Habib Limited, APL reported a profit after tax (PAT) of PKR 7,800 million (EPS: PKR 62.69) for 1HFY24, compared to PKR 5,538 million (EPS: PKR 44.51) in the same period last year, marking a noteworthy 41% year-on-year (YoY) increase.
The second quarter of fiscal year 2023-24 saw the company’s bottom line surge to PKR 2,540 million (EPS: PKR 20.42), reflecting an impressive 103% YoY growth. However, there was a 52% quarter-on-quarter (QoQ) decline. In addition to the financial results, APL declared an interim cash dividend of PKR 10.00 per share in 2QFY24, compared to PKR 12.50 per share in 2QFY23.
The rise in net sales during 1HFY24, which increased by 14% YoY to PKR 271,910 million, can be attributed to a higher average retail price of petroleum products and a 4% YoY increase in High-Speed Diesel (HSD) offtake, while Motor Spirit (MS) sales remained stable. On a quarterly basis, the topline settled at PKR 135,471 million, showing a 19% YoY increase due to higher petroleum prices and a 5% YoY growth in HSD dispatches.
Despite the growth in sales, gross margins for APL dipped slightly by 10 basis points YoY to 4.92% in 1HFY24. However, in 2QFY24, gross margins increased to 2.29%, compared to 1.72% in the same period last year. This improvement was attributed to higher Oil Marketing Company (OMC) margins for MS and HSD. The company is estimated to have booked an inventory loss of approximately PKR 2.3 billion during the quarter.
Operating expenses during 1HFY24 witnessed a significant 26% YoY decline, reaching PKR 3,859 million, primarily due to lower exchange losses during the period. In 2QFY24, operating expenses further decreased by 22% YoY to PKR 1,146 million, driven by the same reason.
Finance costs recorded a 27% YoY reduction to PKR 773 million in 1HFY24, as a result of a decrease in markup charged on late payments. In 2QFY24, finance costs stood at PKR 399 million, marking a 30% YoY decline for the same reason.
The effective taxation rate for APL was 40% in 2QFY24, compared to 34% in 2QFY23, reflecting the company’s adherence to fiscal responsibilities.
Attock Petroleum’s robust financial performance in the first half of FY24 showcases its ability to navigate challenges and capitalize on market opportunities. The company’s strategic initiatives and financial discipline position it as a key player in Pakistan’s petroleum industry.
