Attock Petroleum Limited (APL) is scheduled to announce its 9MFY23 financial result on 27th Apr’23, where we expect the company to post a Profit after tax of PKR 8,953mn (EPS: PKR 71.96) in 9MFY23 compared to PKR 11,247mn (EPS: PKR 90.40), down by 20% YoY. Net sales are expected to augment by 46% YoY amid higher average retail price of petroleum products.

Meanwhile, overall volumes declined by 21% YoY (sales of MS, HSD and FO slumped by 13%, 25% and 30% YoY, respectively). On a quarterly basis, the net profit is expected to arrive at PKR 3,415mn (EPS: PKR 27.45), depicting a decline of 26% YoY. The topline of the company is anticipated to grow by 31% YoY owing to higher product prices; while volumes plunged by 17% YoY. The gross margin in 3QFY23 is projected to be 5.43% (down by 441 bps YoY), as we expect the company to recognize a lower inventory gain of PKR ~2.5bn during the quarter.

On a QoQ basis, the company’s profitability is projected to climb up by 174%, given i) inventory gain during the quarter, and ii) increase in OMC margins.

Courtesy- AHL Research