Attock Petroleum Posts 41% Profit Growth in First Half of FY24

Attock Petroleum Limited (APL) has posted a profit after tax (PAT) of Rs. 7.8 billion in first half of FY24, up by 41 percent YoY against Rs. 5.54 billion in 1HFY23. During 2QFY24, the bottom line clocked in at Rs. 2.54 billion, up by a massive 103 percent YoY while down by 52 percent QoQ. In addition to the result, the company announced an interim cash dividend of Rs.  10.00/share in 2QFY24 (Rs. 12.50/share in 2QFY23). Net sales during 1HFY24 ascended by 14 percent YoY, settling at Rs. 271.9 billion on account of the higher average retail price of petroleum products, and a 4 percent YoY jump in Hi-Speed Diesel (HSD) offtake while Motor Spirit (MS) sales remained stable, according to Arif Habib Limited. On a quarterly basis, the topline settled at Rs. 135.5 billion, up by 19 percent YoY owing to an increase in petroleum price coupled with 5 percent YoY growth in HSD dispatches. The gross margins of the company tumbled by 10bps YoY to 4.92 percent in 1HFY24. On the other hand, the gross margins in 2QFY24 arrived at 2.29 percent vis-à-vis 1.72 percent in SPLY amid higher OMC margins of MS and HSD. Whereas, Arif Habib Ltd estimates that the company booked an inventory loss of -Rs. 2.3 billion during the quarter. The operating expenses during 1HFY24 declined by 26 percent YoY, arriving at Rs. 3.85 billion owing to lower exchange loss during the period. Whereas, operating expenses in 2QFY24 settled at Rs. 1.15 billion, reducing by 22 percent YoY owed to the aforementioned reason. Finance cost reduced by 27 percent YoY to Rs. 773 million in 1HFY24 given the fall in markup charged on late payments during the period. The finance cost during 2QFY24 clocked in at Rs. 399 million, down by 30 percent YoY due to the reason stated above. The company recorded effective taxation at 40 percent in 2QFY24 vis-à-vis 34 percent in 2QFY23. APL posted earnings per share of Rs. 62.69 for 1HFY24 and and EPS of Rs. 20.42 for 2QFY24. At the time of filing, the company’s scrip at the bourse was Rs. 337.89, up 4.65 percent or Rs. 15.02 with a turnover of 2.19 million shares on Tuesday.