Attock Petroleum Ltd (APL) announced result for 2QFY23 where company posted unconsolidated PAT of PkR1.25bn (EPS: PkR10.03), down by 70% on a QoQ basis against PAT of PkR4.1bn (EPS: PkR33.3) during the previous quarter.
· The result came in higher than our expectations of LAT PkR135mn (LPS: PkR1.1) where in major deviations occurred due to lower inventory losses during the quarter, subsequently resulting in gross margins to end at 1.7% for the period.
· Topline of the company stood at PkR113.8bn, changing by 40%/-8% on a YoY/QoQ basis during 2QFY23. The said decline is majorly attributable to falling offtakes (down by 18%/10% YoY/QoQ) wherein retail fuel prices remained relatively stable during the period.
· To note, lower than expected inventory losses arose (PkR192mn vs. our estimate of PkR954mn) on the back of falling fuel prices internationally, as ex-refinery prices for MS/HSD fell by 18%/11% during 2QFY23 as compared to the quarter before.
· Net finance income for the quarter clocked in at PkR826mn (up 237xQoQ) majorly due to higher proportions in short term investments during the period (PkR22.17bn during 1QFY23 vs. PkR1.5bn during 4QFY22) and rising discount rates.
· Effective tax clocked in at 29.8% (vs. 33% last quarter).
Courtesy – AKD Research