Attock Petroleum Limited (APL) announced the financial result for 1QFY25, whereby the company has posted a net profit of PKR 2,385mn (EPS: PKR 19.17) compared to PKR 5,260mn (EPS: PKR 42.27) in 1QFY24 and PKR 3,041mn (EPS: PKR 24.45) in 4QFY24, down 55% YoY | 22% QoQ.

Result Highlights       

• Net sales during 1QFY25 dwindled by 17% YoY, clocking in at PKR 112,718mn, which is attributable to i) lower average retail price of petroleum products, and ii) contraction in sales volumes by 19% YoY (MS, HSD, and FO offtake down 4%, 12%, and 62% YoY, respectively). On a sequential basis, the topline decreased by 14% QoQ owing to a reduction in product prices coupled with a 10% QoQ fall in overall petroleum products (MS, HSD, and FO down 6%, 17%, and 8% QoQ, respectively).
• Gross margins of the company arrived at 3.6% in 1QFY25 compared to 3.1% in 1QFY24 on account of inventory losses during the quarter compared to hefty inventory gains during SPLY. On a QoQ basis, the gross margins in 1QFY25 increased by 47bps amid lower inventory losses during the quarter.  
• Finance costs increased by 30% year over year to PKR 486mn in 1QFY25, due to a higher mark-up charged on late payments.
• The company recorded effective taxation at 39% in 1QFY25 vis-à-vis 40% in 1QFY24.

Courtesy – AHL Research