Attock Refinery denies sale rumours, share price plummets

Attock Refinery Limited (ATRL) dispelled rumours of a potential sale, stating that “no such matter is under consideration”.

The refinery informed its stakeholders of this development in its notice to the Pakistan Stock Exchange (PSX) on Monday.

“We would like to address recent inquiries from certain shareholders/analysts during (the) corporate briefing session of the company held on November 8, 2024 with respect to rumours circulating in the market regarding potential sale of Attock Refinery Limited (ARL).

“We wish to clarify that no such matter is under consideration,” stated ATRL in the notice.

Attock Refinery restarts operation of key unit

During the corporate briefing session held on November 8, ATRL management had also indicated that the company is ready to sign the new refinery policy, stated a note issued on Friday from a brokerage house.

“However, the Finance Act 2024 has made changes to Sales Tax Act 1990 (tax exemption on the petroleum products) which could hamper the incentives and increase costs for the company (given no input taxes adjustment against output taxes). Therefore signing has been delayed until the matter is resolved,” Arif Habib Limited (AHL) noted in the commentary.

The refinery further disclosed that the government has committed to resolve this issue. “The management believes that the issue is expected to be resolved within a week (10th Nov’24-15th Nov 24).”

However, within that note, AHL did not mention any potential sale rumours about ATRL.

The notice sent ATRL’s share price plummeting during intra-day trading. ATRL’s share price fell from Rs526 around 12:55pm to Rs453 within a few minutes. It closed at Rs473 at the end of trading on Monday.

Attock Refinery 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).