Attock Petroleum Limited (PSX: APL) announced its financial performance for 9MFY17 yesterday, and the oil marketing company depicted a significant increase in earnings. After an elevated 2QFY17, APL’s financial performance in the latest quarter (3QFY17) has also been higher by over 80 percent, year-on-year. The distinguishing feature in the latest quarter versus the first two quarters of FY17 was the increase in core profits. Sales revenue that has remained flat for the first two quarters shot up in 3QFY17 by almost 48 percent, year-on-year, which also translated into higher top line in 9MFY17. The key growth factor behind increase in APL’s top line was due to better product margins and volumes. Besides higher revenues, the firm also benefitted from higher inventory gains as ex-refinery prices continued their upward trajectory in 3QFY17.
Overall, the OMC sector remains upbeat based on continuously increasing retail product sales, and revised OMC margins, which will come after 4QFY17. The industry energy volumes for 9MFY17 are still up, rising due to surge in the Mogas volumes. In such an environment, APL management is not only focusing on retail fuels (increasing 20 pumps over 6months), APL has maintained its position of market leader non-energy products like Asphalt, especially with the two Asphalt making refineries being under the same group
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