Attock Petroleum Limited (APL) announced the financial result for FY23, whereby the company has posted a profit after tax (PAT) of PKR 12,461mn (EPS: PKR 100.15) against PKR 18,536mn (EPS: PKR 148.99) in FY22, down by 33% YoY. During 4QFY23, the bottom line clocked in at PKR 2,625mn (EPS: PKR 21.09), down by 64% YoY | 39% MoM. In addition to the result, the company e (PKR 27.50/share in FY23).

Result Highlights

· Net sales during FY23 ascended by 28% YoY, settling at PKR 473,938mn given higher average retail price of petroleum products. Meanwhile, overall volumes plummeted by 24% YoY (sales of MS, HSD and FO slumped by 14%, 27% and 37% YoY, respectively). On a quarterly basis, the topline settled at PKR 123,103mn, down by 5% YoY owing to reduction in volumes by 28% YoY (MS, FO and HSD volumes down by 17%, 33% and 51% YoY, respectively).

· Gross margins of the company tumbled by 558bps YoY to 5.50% in FY23 against 11.08% in FY22. The decline in gross margins can be attributable to inventory losses during the period. On the other hand, the gross margins in 4QFY23 arrived at 5.11% vis-à-vis 15.43% in SPLY amid absence of massive gains during the quarter.

· The operating expenses during FY23 declined by 8% YoY, arriving at PKR 9,383mn owing to lower exchange loss during the period. Whereas, operating expenses in 4QFY23 settled at PKR 2,052mn, reducing by 57% YoY owed to the aforementioned reason.

· Finance cost climbed up by 44% YoY to PKR 2,287mn in FY23 given higher markup charged on late payments during the period. The finance cost during 4QFY23 clocked in at PKR 657mn, up by 28% YoY due to the reason stated above.

· The company recorded effective taxation at 53% in 4QFY23 vis-à-vis 50% in 4QFY22.

Courtesy – AHL Research