Attock: Attock Refinery Limited (ATRL) management has addressed the challenges facing the proposed greenfield refinery project, citing crude oil availability as a critical factor. Although recent improvements have been noted in the northern region, the supply remains inadequate to operate the current refinery at full capacity, according to a press release from JS Global.

The management highlighted that Furnace Oil comprises a significant portion of the company's production due to the sweet nature of the locally sourced crude oil, making the installation of a cracker impractical. Additionally, Low Sulphur Furnace Oil is being sold domestically as opposed to being exported, due to current market conditions, despite its premium over regular Furnace Oil covering transportation costs for export from the northern to southern regions.

The fiscal year 2026 saw the Gross Refinery Margins (GRMs) average $14.8 per barrel, aided by improved refining margins amid geopolitical tensions in the Gulf following the US-Israel attack on Iran. Furthermore, the company has complied with amendments to the Refinery Policy by surrendering the 2.5% deemed duty on high-speed diesel, while benefiting from an exemption on customs duty for locally procured crude oil.

While the previous refinery policy restricted ATRL’s dividend distribution, this constraint has been lifted under the new policy. However, the management indicated that the company's focus remains on the completion of the refinery upgrade project, adopting a conservative stance on dividends. JS Global maintains a buy recommendation on ATRL, with the stock trading at a price-to-earnings ratio of 3.5x for the fiscal year 2027.