Attock Petroleum Limited (APL) has announced its financial results for the first half of the fiscal year 2025 (1HFY25), reporting a net profit of Rs. 5.123 billion, translating to earnings per share (EPS) of PKR 41.18. This marks a 34% year-on-year (YoY) decline compared to the Rs. 7.8 billion (EPS: PKR 62.69) reported in 1HFY24. Despite the decline in half-yearly profitability, the company posted an 8% YoY increase in net profit for the second quarter of FY25 (2QFY25), with earnings of Rs. 2.739 billion (EPS: PKR 22.01).
APL also announced an interim cash dividend of Rs/ 12.50 per share for 2QFY25, up from Rs. 10.00 per share in the same period last year.
APL’s net sales for 1HFY25 stood at Rs. 231.8 billion, down 15% YoY, primarily due to lower average retail prices of petroleum products and a reduction in motor spirit (MS) and furnace oil (FO) offtake by 2% and 60% YoY, respectively. On a quarterly basis, net sales for 2QFY25 declined by 12% YoY to PKR 119.1 billion, according to Arif Habib Ltd.
While MS and FO dispatches declined by 5% and 89% YoY, respectively, high-speed diesel (HSD) sales improved by 6% YoY during 2QFY25.
The company’s gross margins for 1HFY25 contracted by 144 basis points (bps) YoY to 3.48%. However, in 2QFY25, gross margins improved to 3.4% compared to 2.3% in the same period last year, driven by inventory gains.
Operating expenses increased by 7% YoY in 1HFY25, reaching Rs. 4,130 million, largely due to higher depreciation charges.
Finance income declined by 8% YoY to PKR 4,058 million in 1HFY25, attributed to reduced income from cash and cash balances. Meanwhile, finance costs surged by 29% YoY to PKR 997 million due to higher mark-up charges on late payments.
The company recorded an effective tax rate of 34.73% in 2QFY25, slightly lower than the 36.23% reported in 2QFY24.
The company’s quarterly performance showed resilience, with an 8% YoY increase in net profit for 2QFY25, supported by improved gross margins and inventory gains.
Outlook
Despite challenges such as declining sales volumes and lower retail prices, APL’s focus on operational efficiency and inventory management has helped mitigate the impact on profitability.
