Higher petroleum prices, motor spirit sales and refinery margins drive ATRL’s quarterly earnings
KARACHI: Attock Refinery Limited (ATRL) posted a 94% year-on-year (YoY) increase in net profit to Rs5.738 billion during the fourth quarter of fiscal year 2025-26 (4QFY26), supported by higher petroleum product prices, increased motor spirit sales and stronger refinery margins.
According to Arif Habib Limited, the refinery had recorded a net profit of Rs2.957 billion, or earnings per share (EPS) of Rs27.70, in 4QFY25. The latest quarterly earnings translated into an EPS of Rs53.82.
Alongside its financial results, ATRL announced a cash dividend of Rs15 per share, taking its total dividend payout for FY26 to Rs17.50 per share, its highest annual payout during the year.
Sales jump 77%
Net sales increased 77% YoY to Rs116.8 billion in 4QFY26, driven by higher motor spirit (MS) volumes and a sharp rise in ex-refinery prices.
Ex-refinery prices of high-speed diesel (HSD), MS and furnace oil (FO) increased by 100%, 64.6% and 41.9% YoY, respectively.
Gross profit reached Rs8.7 billion, translating into a gross margin of around 7%. The improvement was primarily attributed to higher sales volumes and a significant expansion in HSD crack spreads.
According to Arif Habib Limited’s estimates, average international MS and HSD crack spreads stood at $15.5 per barrel and $46 per barrel, respectively, during the quarter.
Motor spirit sales increase
On the volumetric side, MS sales rose 14.4% YoY to 139,000 tonnes during 4QFY26, supported by reduced gas curtailment.
HSD sales, however, declined 5.7% YoY to 123,000 tonnes amid increased smuggling, higher retail prices and lower offtake by oil marketing companies.
FO sales remained broadly stable at 71,000 tonnes, with most volumes exported despite negative export spreads.
International high-sulphur fuel oil prices averaged $567 per tonne, up 23% YoY. However, higher north-south transportation costs continued to put pressure on realisations.
Other income rises
ATRL’s other income increased 30% YoY to Rs2.9 billion during 4QFY26.
The rise was attributed to higher interest rates and an improved cash position.
The company’s cash and cash equivalents stood at Rs116 billion, equivalent to Rs1,092 per share, at the end of FY26, compared with Rs88.2 billion, or Rs827 per share, a year earlier.
The refinery’s book value stood at Rs1,620 per share.
According to Arif Habib Limited, ATRL is currently trading at estimated price-to-earnings multiples of 4.2 times for FY27 and 4.7 times for FY28.