Attock Petroleum Profit Down 55% in Q1 FY25

Attock Petroleum Limited (APL) announced the financial result for 1QFY25, whereby the company posted a net profit of Rs. 2,385 million (EPS: Rs. 19.17) compared to Rs. 5,260 million (EPS: Rs. 42.27) in 1QFY24 and PKR 3,041mm (EPS: Rs. 24.45) in 4QFY24, down 55 percent YoY | 22 percent QoQ. Net sales during 1QFY25 dwindled by 17 percent YoY, clocking in at Rs. 112,718 million. According to Arif Habib Limited, this was due to the lower average retail price of petroleum products, and a contraction in sales volumes by 19 percent YoY (MS, HSD, and FO offtake down 4 percent, 12 percent, and 62 percent YoY, respectively). On a sequential basis, the topline decreased by 14 percent QoQ owing to a reduction in product prices coupled with a 10% QoQ fall in overall petroleum products (MS, HSD, and FO down 6 percent, 17 percent, and 8 percent QoQ, respectively). Gross margins of the company arrived at 3.6 percent in 1QFY25 compared to 7.5 percent 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 cost increased by 30 percent YoY to Rs. 486 million in 1QFY25 given a higher mark-up charged on late payments during the period. The company recorded effective taxation at 39 percent in 1QFY25 vis-à-vis 40 percent in 1QFY24.