Attock Petroleum Limited (APL) announced the financial result for 1QFY24, whereby the company posted a profit after tax (PAT) of PKR 5,260mn (EPS: PKR 42.27) against PKR 4,290mn (EPS: PKR 34.48) in 1QFY23, up by 23% YoY. On a sequential basis, the bottom-line ascended by 100% QoQ due to imposition of additional super tax charged during 4QFY23 on PBT of FY23.

Result Highlights

• Net sales during 1QFY24 grew by 10% YoY, settling at PKR 136,439mn given i) higher average retail price of petroleum products, and ii) jump in MS and HSD volumes by 2% and 3% YoY, respectively. Meanwhile, FO volumes plunged by 25% YoY. On QoQ basis, the topline climbed up by 11% QoQ owing to increase in product prices tagged with 3% QoQ uptick overall petroleum products (MS and HSD up 4% and 5% QoQ, respectively).

• Gross margins settle at 7.53% in 1QFY24 vis-à-vis 8.06% in SPLY given lower overall sales volumes. Meanwhile, the company booked inventory gains of ~PKR 5bn during the period under review. Whereas, on a QoQ basis, the gross margins increased by 242bps in 1QFY24 owed to higher inventory gains coupled with a jump in overall sales volumes.

• The operating expenses during the quarter reduced by 28% YoY, arriving at PKR 2,713mn on account of lower exchange loss. On a sequential basis, the operating expenses increased by 33% QoQ.

• Finance income augmented by 3x YoY | 3% QoQ to PKR 2,043mn in 1QFY24 given higher income from cash and cash balances.

• The company recorded effective taxation at 40% in 1QFY24 vis-à-vis 34% in 1QFY23

Courtesy- AHL Research