August 11, 2021 (MLN): Attock Petroleum Limited (APL), has disclosed its financial performance for FY21 wherein the company posted over 4.8x YoY increase in net profits to Rs4.9bn compared to Rs1bn in FY20.
This translated into earnings per share of the company which clocked in at Rs49.43 as against Rs10.13 in the previous fiscal year.
The surge in the profitability of the company was majorly due to a low base as FY20 saw a collapse in oil prices, which left enormous inventory losses for all existing players holding POL inventory in their storage.
Sales revenue of APL was declined by 6% YoY due to a decline in petroleum product prices and flat sales volume as MOGAS and HSD market shares dropped to 8.1% and 9.2%, respectively, vs. 8.9% and 9.6% in SLPY. The drop in the market share of HSD is mainly attributable to losing government contracts during FY21. Nevertheless, due to inventory gains on account of normalcy in oil prices from their depressed levels in FY20, gross profits of the company was surged by 174% YoY.
Moreover, due to a decline in short-term investment and interest rate, the finance income of the company dipped by 40%YoY, while finance cost also shrank by 11% YoY.
With regards to market share, APL witnessed a slump, standing at 8% for 4QFY21 against 9% for 4QFY20 as HSD consumption by power plants decreased while smaller players are also eating up the company's share in retail fuels. Nonetheless, the company has overcome its supply chain bottleneck and expanded its storage capacity by leaps & bounds to over twofold since 2017. This would help APL to regain its market share and expand its retail presence across the country.
Its upcoming Port Qasim storage terminal in Karachi is an indication that the company aims to move towards growth further in the southern region, striving to take an assertive position in Sindh’s major cities.
Alongside financial results, the company announced a dividend of Rs24.5/sh, i.e., 245% for FY21.
Looking ahead, the Company’s debt-free balance sheet will not only shield it from interest rate volatility, and assist company in taking new projects in the future, but this will also ensure strong dividend payouts.
Profit and Loss Account for the Year ended June 30, 2021 ('000 Rupees)
Sales tax and other govt levies
Cost of products sold
Net impairment losses on financial assets
Net finance income
Share of loss/profit of associated companies
Profit before taxation
Provision for income tax
Profit for the period
Earnings per share – basic and diluted (Rupees)
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