Attock Petroleum’s Profit Dips by 16% in 1HFY23

Attock Petroleum Limited (APL) Monday reported a 16 percent drop in its half-yearly profit after tax as the company’s operating expenses climbed owing to exchange losses coupled with an increase in finance cost.

The company reported a profit after tax (PAT) of Rs. 5.5 billion in 1HFY23 compared to PAT of Rs. 6.6 billion reported in 1HFY22. The company reported earnings per share (EPS) of Rs. 44.51 in 1HFY23 compared to EPS of Rs. 53.12 in the same period of the previous year.

The company posted PAT of Rs. 1.25 billion in 2QFY23, down 70 percent compared to PAT of Rs. 4.2 billion reported in 2QFY22.

Net sales during 1HFY23 climbed up by 54 percent compared to the previous year given the higher average retail price of petroleum products. Meanwhile, overall volumes declined by 21 percent compared to the same period of the previous year (sales of MS, HSD, and FO reduced by 12 percent, 23 percent, and 32 percent compared to the same period of the previous year, respectively), according to a report by Arif Habib Ltd.

The topline during 2QFY23 settled at Rs. 113.846 billion, a 40 percent increase compared to the same period of the previous year amid higher product prices.

However, the volumes reported a fall of 13 percent over the same period of the previous year (MS, FO, and HSD volumes were down by 10 percent, 13 percent, and 27 percent year-on-year (YoY), respectively). On a QoQ basis, net sales dropped by 8 percent owing to 9 percent quarter-on-quarter (QoQ) reduction in petroleum products coupled with a decrease in petroleum prices.

Gross margins of the company depleted by 312bps YoY to 5.02 percent in 1HFY23 against 8.14 percent in 1HFY22. The gross margins in 2QFY23 arrived at 1.72 percent compared to 9.65 percent in the same period of the previous year.

The operating expenses during 1HFY23 climbed up to 70 percent YoY, arriving at Rs. 5.2 billion owing to exchange losses during the period. Whereas, operating expenses in 2QFY23 settled at Rs. 1.4 billion, down by 14 percent YoY amid the absence of exchange losses during the quarter.

The company’s finance cost also surged by 43 percent YoY to Rs. 1 billion in 1HFY23 given the higher markup charged on late payments during the period. The finance cost during 2QFY23 clocked in at Rs. 570 million, up by 42 percent YoY due to the aforementioned reason.

The company recorded effective taxation at 29.80 percent in 2QFY23 compared to 29.58 percent in 2QFY22.

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