National Refinery’s profit plunges 78% to Rs1.77b

Earnings posted by Attock Refinery dip 81%, while Attock Petroleum’s jump 7%

KARACHI: National Refinery Limited’s (NRL) profit plunged 78% to Rs1.77 billion in the year ended June 30, 2018, as exorbitant costs of sales and financing eroded robust sales.

In the previous fiscal year, the petroleum refinery booked a profit of Rs8.04 billion, according to a notification sent to the Pakistan Stock Exchange (PSX).

Earnings per share fell to Rs22.14 in the year under review, compared to Rs100.61 in the last fiscal year. The company booked net sales of Rs136.98 billion, 27.5% higher than Rs107.44 billion.

Moreover, the cost of sales increased 6.34 percentage points to 97.21% (Rs133.17 billion) of the sales in the year compared to 90.87% (Rs97.64 billion) last year. Whereas, the finance cost surged 10 times to Rs1.76 billion from Rs182.5 million.



NRL’s share price fell 2.30% or Rs8.70, to Rs369.72 with 85,200 shares changing hands at the PSX.

ARL profit tumbles to Rs1.38b

Attock Refinery Limited’s (ARL) consolidated profit also tumbled 81% to Rs1.38 billion in the year ended June 30, 2018, due to higher cost of sales than the sales proceeds.

In the last fiscal year, the refinery registered a profit of Rs7.41 billion and earnings per share dropped to Rs16.28 from Rs86.93 last year.

The board of directors recommended 25% bonus shares (one share for every four shares).

The company realised the net sales worth of Rs129.59 billion, which was 28% higher than Rs101.41 billion last year. However, its cost of sales came higher (101% or Rs130.67 billion) than the sales proceeds in the year. Last year, the cost of sales stood at around 96% of the sales proceeds.



The finance cost shot up 2.3 times to Rs2.92 billion from Rs1.26 billion.

ARL’s share price hit the upper limit of 5%, or increased Rs10.22, to close at Rs215.59 with two million shares changing hands at the PSX.

APL profits Rs5.65b

On the other hand, Attock Petroleum Limited’s (APL) profit improved 7% to Rs5.65 billion in the year ended June 30, 2018, mainly due to higher sales.

The profit stood at Rs5.29 billion in the previous year and earnings per share enhanced to Rs68.19 compared to Rs63.89. The board of directors recommended a final cash dividend of Rs25 per share and 20% bonus shares (one share for every five shares).

APL’s share price hit upper limit of 5%, or increased Rs29.12, to Rs611.59 with 299,200 shares changing hands at the PSX. The net sales surged 28% to Rs177.34 billion from Rs138.66 billion last year.

In a note to clients, Arif Habib Limited analyst Arsalan Hanif said sales surged on account of higher product prices along with volumetric growth (volumes of petrol sales increased 13%, diesel sales remained flat, whereas furnace oil sales witnessed a decline of 1%).

Published in The Express Tribune, August 16^th, 2018.

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