Attock Petroleum Limited (PSX: APL) delivered a strong 9MFY26 performance, with profitability rising much faster than the topline. The company’s profit after tax almost doubled, up 92 percent year-on-year. The third quarter was even stronger, with profit after tax jumping more than three times.
The topline growth was steady rather than spectacular. Net sales increased 6.6 percent year-on-year, while 3QFY26 sales rose 12.3 percent. This was largely supported by higher petroleum product prices, with average MS and HSD prices rising year-on-year. Operationally, the company also benefited from improved volumes in the third quarter, where MS volumes increased 4 percent and HSD volumes rose 8 percent year-on-year.
The real story, however, was not sales growth but margin expansion. Gross profit more than doubled in 9MFY26, while gross margin improved sharply to 7.5 percent from 3.9 percent. In 3QFY26, the margin improvement was even more pronounced, with gross margin rising to 11.9 percent from 4.7 percent. This was driven mainly by sizeable inventory gains, which lifted quarterly profitability significantly.
Operating profit reflected the same trend. APL’s operating profit rose 166 percent year-on-year, while 3QFY26 operating profit surged 276.5 percent. Operating expenses remained relatively contained, rising 5.6 percent in 9MFY26, broadly in line with the scale of operations. This helped much of the gross profit improvement flow through to the operating line.
Other income also provided support, increasing 31 percent year-on-year supported by higher rental income, commission, and handling income. However, net finance income declined 33 percent, mainly due to lower finance income.
Below the operating line, other charges doubled 9MFY26, while taxation also rose sharply in line with higher profitability. Overall, APL’s profit after tax increased by around 92 percent year-on-year.
From an operational perspective, APL’s performance reflects a mix of higher pricing, growth in volumes, and inventory-related gains linked to rising international oil prices. Similarly, the company’s significant jump in margins was also due to the inventory gains that the company incurred. Going forward, while the company benefits from higher fuel prices, the coming quarter could see squeeze in consumption as higher prices are likely to curb consumer fuel spending.
Comments