According to a research note issued by AL Habib Capital Markets Pvt Ltd, Attock Refinery Limited (ATRL) published its FY26 Annual Report highlighting improved utilization, new crude receipts, and progress on its modernization program.

The refinery operated at 71% utilization versus 69% in FY25, with throughput rising to 1.73mn tons. Product supplies stood at 1.55mn tons, while 172,500 tons of LSFO were exported to offset weak domestic furnace oil demand. Crude receipts from newly discovered reserves began in 4QFY26 and are expected to support higher utilization going forward. The company also booked a PKR 7.8bn revaluation surplus on freehold land.

ATRL is pursuing a USD 600mn Refinery Expansion & Upgrade Project (REUP), including Euro-V compliance, a Continuous Catalyst Regeneration (CCR) unit to boost PMG output, and a revamp of its DHDS unit to produce Euro-V diesel. FEED studies are 90% complete, and Studi Tecnologie Progetti SpA (Italy) has been appointed for consultancy. ATRL has sent EOIs to EPCC contractors and received positive responses. ATRL is also evaluating a new 50,000 BPD deep conversion refinery, subject to crude availability and government support.

Sales breakup showed the PMG RON differential declined 14.6% YoY to PKR 1.25bn, while the HSD Euro-V price differential fell 9.6% YoY to PKR 951mn, bringing combined differentials to PKR 2.21bn, down 12.5% YoY. Customs duties rose 43.6% YoY to PKR 19.4bn due to higher HSD surrender rates under the amended Brownfield Refinery Policy.

AL Habib Capital Markets noted that policy clarity, tariff protection, and ongoing upgrades position ATRL to strengthen product quality, reduce import dependence, and enhance energy security.