Attock Refinery Limited (ATRL) announced its financial results for 3QFY26, posting a net profit of Rs. 11,345 million, its second-highest quarterly profit. This compares with Rs. 1,703 million (earnings per share (EPS): Rs. 15.97) in 3QFY25, reflecting a strong 6.7 times year-on-year (YoY) increase. EPS for the quarter stood at Rs. 106.4, with no dividend declared.
Key Performance
Net sales increased 18 percent YoY to Rs. 87.7 billion in 3QFY26, supported by higher refinery throughput and stronger product pricing. Sales volumes of key products showed solid growth, with high-speed diesel (HSD) up 42.2 percent YoY, motor spirit (MS) up 10.7 percent YoY, and furnace oil (FO) up 19.4 percent YoY.
Gross profit surged to Rs. 17.6 billion, with margins expanding to a record 20.1 percent, the highest level in the company’s history. The improvement was driven by stronger operating volumes and a sharp increase in HSD refining spreads.
Refining economics strengthened significantly during the quarter as crack spreads widened, particularly for HSD. MS and HSD spreads averaged $6.2 per barrel and $57 per barrel, respectively, compared to historical norms of around $5 per barrel for MS and $12 per barrel for HSD, resulting in a strong profitability uplift.
On the volumetric front, MS sales reached 146,000 tons, up 15.6 percent YoY, while HSD sales increased to 152,000 tons, up 24.2 percent YoY in 3QFY26. The growth was supported by reduced operational curtailment and stronger demand from oil marketing companies amid expectations of rising fuel prices. FO volumes declined 35.4 percent YoY to 65,000 tons in March 2026; however, most of the output was exported, though still at negative margins despite partial recovery in international HSFO prices.
Other income declined 9 percent YoY to Rs. 2.2 billion due to lower interest rates, even though the company maintained a stronger cash position.
Financial Position
Cash and short-term investments stood at Rs. 98.3 billion (Rs. 922 per share), up from Rs. 76.8 billion (Rs. 721 per share) in the same period last year. Book value per share was recorded at Rs. 1,494.
Valuation
ATRL continues to trade at attractive levels, with FY26e and FY27f price-to-earnings (P/E) multiples of 4.7x and 6.1x, respectively.
