The improved output from Attock group refineries – Attock Refinery Limited (ARL) and National Refinery Limited (NRL) – were the primary reason behind higher sales, while Byco sales also played its role though it was shutdown in the comparable period last year. Furthermore, despite higher output, countries reliance on the imported fuel increased, with local production fulfilling only 44% of the domestic demand.
Uncertain outlook for the refinery margins may lead to sector’s underperformance going forward.
Capacity utilisation stood at 71%
Domestic refineries operated at approximately 71% capacity in July 2012 against 67% in July, 2011 primarily on account of increased output from ATRL and NRL. During the period under review, both refineries operated at 91% and 87% respectively. Furthermore, Byco, which continues to be marred with adverse operating environment, operated at 23% of its name-plate capacity which was shutdown in the same period last year. On the other hand, Pak Arab Refinery Limited (Parco) and Pakistan Refinery Limited (PRL), operated at 76% and 68% down from previous year’s 79% and 75%, respectively.
The higher performance of ATRL is on account of better product mix and relative immunity to circular debt as it benefits from their integral position in the Attock Group.
Gaining market share
Though Parco remained the market leader; its market share decline to 42% against 45% with ATRL and NRL gaining the lost ground.
Published in The Express Tribune, August 31st, 2012.
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