Attock Petroleum Profits Down by 33% in FY23

Attock Petroleum Limited (APL) has announced a profit after tax of Rs. 12.46 billion for the financial year that ended on June 30, 2022-2023. According to the company’s financial results, the company’s profit saw a decrease of 33 percent year-over-year (YoY), as compared to Rs. 18.53 billion in the same period last year. Along with the result, APL announced a final cash dividend for FY23 at Rs. 15 per share i.e. 150 percent. This is in addition to the interim dividend already paid at Rs. 12.5 per share i.e. 125 percent. Net sales during FY23 ascended by 28 percent YoY, settling at Rs. 473.9 billion given the higher average retail price of petroleum products, according to Arif Habib Limited. Meanwhile, overall volumes plummeted by 24 percent YoY (sales of MS, HSD, and FO slumped by 14%, 27% and 37% YoY, respectively). On a quarterly basis, the topline settled at Rs. 123.1 billion, down by 5 percent YoY owing to a reduction in volumes by 28 percent YoY (MS, FO, and HSD volumes down by 17%, 33% and 51% YoY, respectively). Gross margins of the company tumbled by 558 basis points to 5.50 percent in FY23 against 11.08 percent in FY22. The decline in gross margins can be attributable to inventory losses during the period. On the other hand, the gross margins in 4QFY23 arrived at 5.11 percent vis-à-vis 15.43 percent in SPLY amid the absence of massive gains during the quarter. The operating expenses during FY23 declined by 8 percent YoY, arriving at Rs. 9.38 billion owing to lower exchange loss during the period. APL’s operating expenses in 4QFY23 settled at Rs. 2.05 billion, reducing by 57 percent YoY owed to the aforementioned reason. APL’s finance cost climbed by 44 percent YoY to Rs. 2.28 billion in FY23 given the higher markup charged on late payments during the period. The finance cost during 4QFY23 clocked in at Rs. 657 million, up by 28 percent YoY due to the reason stated above.