Corporate results: Attock Petroleum announces Rs1.6 billion earnings

Six-month result accompanied by dividend of Rs15 per share

KARACHI: Attock Petroleum Limited (APL) boosted its net earnings to Rs1.6 billion during the six-month period ended December 31, 2015, according to a notice sent to the Pakistan Stock Exchange on Tuesday.

The company reported a net profit of Rs1.6 billion or Rs19.8 per share during the second half of 2015, up 12% compared to Rs1.4 billion or Rs17.7 per share it earned during the corresponding period of 2014.

The result, which was accompanied with a cash dividend of Rs15 per share, was above market consensus, according to Zeeshan Afzal who is the Head of Research at Taurus Securities.

The growth in earnings during July-December period of 2015 can primarily be attributed to a higher gross profit, which increased by 27% largely driven by absence of inventory loss amid relative stability in petroleum prices during the period, BMA Capital said in its report.

Though improved gross margin provided a boost to the net earnings, the company saw its revenues for the period decline by 39% - APL’s revenues during July-December period clocked in at Rs60.8 billion compared to Rs100 billion of the corresponding period of last year.

The decline in APL’s revenue was a function of decrease in international oil prices, Afzal, the research analyst at Taurus Securities, said adding it didn’t have any impact on profit margin.

National Refinery

National Refinery Limited (NFL), another (51%-owned) subsidiary of Attock Oil Group of Companies, reported an after-tax profit of Rs2.8 billion or Rs36.07 per share during the same period. This indicates a revolutionary turn from a loss of Rs48 million or Rs0.61 per share of the comparable period of last year.

The share price of NFL, which traded at Rs280.24 the previous day, appreciated by Rs0.49 or 0.17% to settle at Rs280.73 at the close of business on Tuesday with more than 1.5 million shares changing hands - its highest turnover for the month.

Published in The Express Tribune, February 10^th, 2016.

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