Home Business Attock Petroleum Ltd Profit decline 33 percent to PKR12.5 billion in FY2023

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Attock Petroleum Ltd Profit decline 33 percent to PKR12.5 billion in FY2023

September 5, 2023

Attock Petroleum Limited (APL) has reported its financial results for FY23, revealing a Profit After Tax (PAT) of PKR 12,461 million (EPS: PKR 100.15) compared to PKR 18,536 million (EPS: PKR 148.99) in FY22, marking a YoY decline of 33%. In the fourth quarter of FY23, the company’s bottom-line reached PKR 2,625 million (EPS: PKR 21.09), reflecting a YoY drop of 64% and a MoM decrease of 39%. Alongside these results, APL has declared a final cash dividend of PKR 15.00 per share (compared to PKR 27.50 per share in FY22).

Here are the key highlights from the financial results:

Net Sales: APL experienced a 28% YoY increase in net sales during FY23, reaching PKR 473,938 million. This rise was attributed to higher average retail prices of petroleum products. However, overall volumes declined by 24% YoY, with sales of Motor Spirit (MS), High-Speed Diesel (HSD), and Furnace Oil (FO) dropping by 14%, 27%, and 37% YoY, respectively. On a quarterly basis, the topline stood at PKR 123,103 million, down by 5% YoY, primarily due to a 28% YoY reduction in volumes (MS, FO, and HSD volumes decreased by 17%, 33%, and 51% YoY, respectively).

Gross Margins: The company’s gross margins decreased by 558 basis points (bps) YoY to 5.50% in FY23, compared to 11.08% in FY22. This decline was attributed to inventory losses during the period. In 4QFY23, the gross margins were 5.11%, down from 15.43% in the same period last year due to the absence of significant gains.

Operating Expenses: Operating expenses for FY23 decreased by 8% YoY to PKR 9,383 million, primarily due to lower exchange losses during the period. In 4QFY23, operating expenses amounted to PKR 2,052 million, showing a 57% YoY decrease for the same reason.

Finance Cost: The finance cost increased by 44% YoY to PKR 2,287 million in FY23, mainly due to higher markup charged on late payments during the period. In 4QFY23, the finance cost reached PKR 657 million, up by 28% YoY for the same reason.

Effective Taxation: The company recorded an effective taxation rate of 53% in 4QFY23, compared to 50% in 4QFY22.

(PKR million)	FY2023	FY2022	YoY	4QFY23	4QFY22	YoY	QoQ
Net Sales	473,938	370,075	28%	123,103	129,039	-5%	9%
Gross Profit	26,071	41,003	-36%	6,294	19,910	-68%	-20%
Other Expense	9,383	10,215	-8%	2,052	4,797	-57%	-5%
Finance Cost	2,287	1,587	44%	657	514	28%	15%
Profit After Taxation	12,461	18,536	-33%	2,625	7,289	-64%	-39%
EPS (PKR)	100.15	148.99		21.09	58.59
DPS (PKR)	27.5	45		15	30