Attock Petroleum Profit Down 55% in Q1 FY25

Attock Petroleum Limited (APL) announced the financial result for the first quarter of FY25, reporting a net profit of Rs. 2,385 million (EPS: Rs. 19.17), compared to Rs. 5,260 million (EPS: Rs. 42.27) in the same period last year, and Rs. 3,041 million (EPS: Rs. 24.45) in the fourth quarter of FY24. This marks a 55% year-over-year (YoY) decline and a 22% quarter-over-quarter (QoQ) decrease.

Net sales during 1QFY25 fell by 17% YoY, totaling Rs. 112,718 million. According to Arif Habib Limited, this decline was due to the lower average retail price of petroleum products and a 19% YoY reduction in sales volumes, with MS (motor spirit), HSD (high-speed diesel), and FO (furnace oil) offtake down by 4%, 12%, and 62%, respectively.

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Sequentially, the topline decreased by 14% QoQ due to a reduction in product prices and a 10% QoQ fall in overall petroleum product sales (MS, HSD, and FO down by 6%, 17%, and 8% QoQ, respectively).

Gross margins for the company in 1QFY25 stood at 3.6%, compared to 7.5% in 1QFY24, primarily due to inventory losses during the quarter, as opposed to significant inventory gains in the same period last year. However, on a QoQ basis, the gross margins in 1QFY25 increased by 47 basis points due to lower inventory losses during the quarter.

Finance costs increased by 30% YoY to Rs. 486 million in 1QFY25, attributed to a higher mark-up charged on late payments during the period.

The company recorded effective taxation at 39% in 1QFY25, compared to 40% in 1QFY24.