Attock Group announced the results for it OMC yesterday. Unlike the healthy revenue growth of Attock Petroleum Limited during FY12 highlighted by favourable price and volume mix, the top line of the company during 1QFY13 remained significantly flat owing to weaker volumes.
A decline of 10 to 15 percent in the volumes of high speed diesel (HSD) and motor spirit (MS) limited volumetric growth during the first quarter of FY13 versus the similar period last year. Sales revenue grew at a meager two percent YoY during 1QFY13.
However, the company was able to bag increased profits on account of better margins on petroleum products during the quarter ending September 30. Analysts have hinted towards better product margin growth year-on-year during the period under review on account of an upsurge experienced during the latter half of FY12.
Profit for the oil marketing company for 1QFY13 stood at Rs1.29 million, 18 percent more than what was achieved during 1QFY12. Earnings were partly subdued by higher operating expenses, absence of inventory gains, and exchange losses translating into a 65 percent YoY increase in finance cost.
However on the whole, being the only integrated oil and gas company in the country, Attock Group benefits greatly from the synergies and portfolio amid uncertain outlook for refinery and OMC margins. Moreover, the group has a natural buffer against the ongoing energy crisis and the circular debt debacle.
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Attock Petroleum Limited
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Rs (mn) 1QFY13 1QFY12 Chg
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Net sales 36,572 35,934 2%
Gross profit 1,787 1,216 47%
Other operating income 719 560 28%
Operating expenses 353 162 117%
Operating profit 2,152 1,614 33%
Finance cost 379 230 65%
Profit for the year 1,291 1,098 18%
Gross margin 4.9% 3.4%
Operating margin 5.9% 4.5%
Net margin 3.5% 3.1%
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Source: KSE Notice