Karachi, October 25, 2022 (PPI-OT): Oil and Gas Marketing Companies – Attock Petroleum Limited

Earnings: Attock Petroleum Limited (APL) announced it 1QFY23 result. The Company reported 1QFY23 earnings of PKR 4.29bn (EPS PKR 34.48), up by +80%y/y compared to PKR 2.39bn (EPS PKR 19.2) in the similar period last year. On quarterly basis, earnings are down by 41%q/q during 1QFY23 mainly due to lower inventory gains.

Operating performance: Earnings clocked in higher mainly due to hefty inventory gains and higher margins on FO due to price increase. However, higher operating cost, drop in total volumes and higher taxation limited profitability growth during 1QFY23, in our view. During 1QFY23, APL reported +70%y/y increase in revenue during 1QFY23 on the back of rise in domestic prices for MS, HSD and FO despite lower volumes. Gross Margins increased to 8.1% during 1QFY23 likely on the back of hefty inventory gains compared to 6.4% in the similar period last year (4QFY22: 15.4%). Operating expenses increased by +2.2xy/y to PKR 3.73bn during 1QFY23 compared to PKR 1.67bn in the corresponding period last year. Other charges also increased by +90%y/y to PKR 0.47bn during 1QFY23 compared to PKR 0.25bn in the same period last year. Effective tax stood at 33.5% during 1QFY23 (4QFY22: 50.4%) compared to 29.4% in the same period last year.