Attock Petroleum Limited (APL) has announced its financial results for the first quarter of the fiscal year 2025, revealing a substantial decrease in net profit. The company reported a net profit of Rs. 2.385 billion, translating to earnings per share (EPS) of Rs. 19.17. This marks a 55% year-on-year decline from Rs. 5.260 billion (EPS: Rs. 42.27) in the same quarter of the previous year, and a 22% quarter-on-quarter decrease from Rs. 3,041 million (EPS: Rs. 24.45) in the fourth quarter of FY24.
The decline in net sales, which fell by 17% year-on-year to Rs. 112,718 million, was attributed to lower average retail prices of petroleum products and a 19% reduction in sales volumes. Specifically, the offtake of motor spirit (MS), high-speed diesel (HSD), and furnace oil (FO) decreased by 4%, 12%, and 62% year-on-year, respectively, according to Arif Habib Limited.
Sequentially, APL’s topline decreased by 14% quarter-on-quarter, driven by reduced product prices and a 10% decline in overall petroleum product sales, with MS, HSD, and FO down by 6%, 17%, and 8% quarter-on-quarter, respectively.
The company’s gross margins for 1QFY25 were 3.6%, a significant drop from 7.5% in 1QFY24, primarily due to inventory losses during the quarter compared to substantial inventory gains in the same period last year. However, on a quarter-on-quarter basis, gross margins improved by 47 basis points due to lower inventory losses.
Finance costs rose by 30% year-on-year to Rs. 486 million in 1QFY25, attributed to higher mark-up charges on late payments during the period.
APL recorded an effective tax rate of 39% in 1QFY25, slightly lower than the 40% recorded in 1QFY24.
