There was nothing too exciting about financial performance of Attock Groups refineries for 1QFY15. Where National Refinery Limited (KSE: NRL) plunged into losses once again, Attock Refinery Limited (KSE: ATRL) slipped by almost 100 percent in earnings.
The damage started at the top when both the refineries posted a decline in revenues, about 4 percent year-on-year for ATRL, and 6 percent year-on-year for NRL. One common issue for all the refineries has been the shrinking refinery margins, where high cost of sales eats up most of the revenue gains. For NRL, what further aggravated the earnings decline was the 32 percent year-on-year contraction in other income in 1QFY15. And so NRL has been facing tough times for some time now, and it looks as though the NRLs overall operations have slowed down. Sadly for the firm, net margins also turned crimson in 1QFY15.
ATRLs performance was also unsatisfactory, as the firm posted a loss when only its refinery business is looked at. Loss from refinery operations further increased by 35 percent year-on-year due to inventory losses. However increase in other income supported the bottom line. The refinerys income from non-refinery operations has gone down by 24 percent year-on-year. But on the brighter side, however, ATRLs expansion plan of installing a new refining unit of 10,400 bpd, an isomerization plant of 7000 bpd and diesel hydrosulphurization plant of 12,500 bpd signal towards better times in the long term.


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National Refinery Limited
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Rs (mn) 1QFY15 1QFY14 Chg
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Net sales 49,928 52,923 -6%
Gross profit 67 1,557 -96%
Dist. & markt. Exp 241 273 -12%
Administrative expenses 133 108 22%
Other income 310 457 -32%
Other operating expenses 1 36 -97%
Operating profit 3 1,596 -100%
Finance cost 897 1,174 -24%
Profit after tax (837) 202
EPS (Rs/share) -10.47 2.52
Gross margin 0.1% 2.9%
Operating margin 0.0% 3.0%
Net margin -1.7% 0.4%
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Source: KSE Notice


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Attock Refinery Limited
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Rs(mn) 1QFY15 1QFY14 YoY
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Net sales 40,962 42,541 -4%
Gross profit (1,386) (167) 730%
Other Income 575 410 40%
Administrative expenses 123 92 35%
Distribution cost 13 12 12%
Finance cost 445 857 -48%
PAT (refinery operations) (1,037) (766) 35%
Income from non refinery op. 1,044 1,368 -24%
PAT for the period 6 602 -99%
EPS (Rs/share) 0.08 70.6 -100%
Gross margin -3.38% -0.39%
Net margin (refinery operations -2.53% -1.80%
Net margin (overall) 0.02% 1.41%
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Source: KSE Notice

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