Corporate results: Attock group sees mixed results

APL fares better while NRL and ARL tumble.

KARACHI:

Attock Group posted results for three of its subsidiaries on Wednesday with its up and downstream petroleum businesses announcing profits but refineries taking a hit.

Attock Petroleum Limited

Attock Petroleum Limited’s (APL) announced a profit of Rs2.7 billion in the six-month period from July-December 2013, up 24% compared to the corresponding period in the previous year, mainly due to better sales of petroleum products.



It announced a cash dividend of Rs17.5 per share, lower than what the market was expecting, according to analysts.

Sales of petrol, diesel and furnace oil were up 24%, 46% and 14% respectively, said Invest Capital in a research report.

“In addition to this, better product pricing during the period was anticipated to lead to higher inventory gains,” it said.

The company recorded strong growth in profit despite a 28.7% decline to Rs475.8 million in net finance income. This was result of resolution of inter-corporate circular debt.

National Refinery Limited

National Refinery Limited saw a 98% decline in its profit for the six-month period as refining margins − the difference between crude oil and petroleum product prices − took a battering.



It announced a meagre profit of Rs29.6 million against Rs1.56 billion recorded in the corresponding period in the previous year.  A 36% decline in other income compounded the problem for the refinery. Finance cost also went up to Rs1.4 billion from Rs499 million in same period of previous year.

Attock Refinery

Attock Refinery’s profit also crashed to Rs548 million against Rs3.2 billion it made in July-December period of 2012.

Published in The Express Tribune, January 23^rd, 2014.

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