In a year marked by economic turbulence and fluctuating petroleum prices, Attock Petroleum Limited (PSX: APL) achieved impressive financial growth. Despite these challenges, the company maintained its upward trajectory, bolstered by strategic moves toward diversification, including ventures into the LPG and electric vehicle (EV) sectors.
APL’s revenue growth stood at 11 percent year-on-year, driven by higher retail prices of petroleum products and improved demand for petrol and diesel. Sales volumes showed positive momentum, particularly in key products. Petrol sales rose by 4 percent year-on-year, while diesel dispatches grew by 5 percent in FY24. These increases were primarily driven by the Kharif sowing season and increased transportation needs. The company’s earnings also rose by 11 percent year-on-year.
However, APL’s gross profit declined by 15 percent, with gross margins contracting from 5.5 percent in FY23 to 4.2 percent in FY24, largely due to inventory losses and the absence of significant inventory gains seen in the third quarter of the fiscal year. Operating expenses dropped by 19 percent year-on-year, reflecting lower exchange losses. Meanwhile, finance income surged by 75 percent year-on-year, driven by higher returns on cash and investments.
APL has made significant strides in diversifying its portfolio, with planned investments in the LPG sector and future potential in EV charging infrastructure. These initiatives are expected to enhance the company’s long-term growth. Looking ahead, the company’s solid balance sheet, combined with its strategic focus on diversification, positions it well to navigate ongoing economic uncertainty and capitalize on new market opportunities. For FY24, the company announced a final cash dividend of PKR 17.50 per share.
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