Attock Refinery sees profit decline 37% in 2QFY24

Despite higher sales, Attock Refinery Limited (ATRL), a subsidiary of the Attock Oil Company Limited, saw its profit-after-tax (PAT) drop over 37%, clocking in at Rs5.26 billion in 2QFY24 on a consolidated basis for the period ended December 31, 2023.

In the same period last year, ATRL saw a PAT of Rs8.39 billion.

According to a notice to the Pakistan Stock Exchange (PSX) on Tuesday, the board of directors met on February 05 to review the company’s financial and operational performance.

The BoD announced an interim cash dividend of Rs2.50 per share i.e. 25%, for the six-month period ending December 31, 2023.

Earnings per share (EPS) were recorded at Rs49.32 in 2QFY24 as compared to EPS of Rs78.70 in the same period last year (SPLY).

Net sales rose to Rs98.07 billion compared to Rs89.87 billion in SPLY, an increase of over 9%.

Attock Refinery’s earnings up 64% in 1QFY24

However, despite higher sales, ATRL saw its gross profit dwindle to Rs4.18 billion in 2QFY24 as compared to Rs10.96 billion in SPLY, a decline of 62%. Resultantly, the company saw its profit margin shrink to 4.27% in 2QFY24, as compared to 12.2% in SPLY.

The decrease comes on account of high cost of sales, which jumped to Rs93.88 billion in 2QFY24, as compared to Rs78.91 billion in SPLY, an increase of 19% YoY.

On a consolidated basis, ‘other income’ also increased 134% to Rs4.24 billion in 2QFY24, compared to Rs1.81 billion in SPLY.

The company profit before tax from refinery operations stood at Rs7.49 billion in 2QFY24, as compared to Rs11.69 billion in the same period last year, a decline of nearly 36%.

However, operating expenses decreased 25% to Rs945.65 million in 2QFY24, as compared to Rs1.18 billion in SPLY.

Attock Refinery Limited was incorporated in Pakistan on November 8, 1978, as a private limited company and was converted into a public company on June 26, 1979. It is principally engaged in the refining of crude oil.

The company is a subsidiary of the Attock Oil Company Limited, England and its ultimate parent is Coral Holding Limited (a private limited company incorporated in Malta).