Attock Petroleum suffers decline in profits due to slower sales of furnace oil last quarter

January 22, 2019 (MLN): Attock Petroleum Limited (APL) has reported a net income of Rs.2.1 billion for the half year ended December 2018, marking a descent of 25% when compared to the earning in corresponding period of FY18 (Rs.2.8 billion). The company’s EPS stands at PKR 21.13, while net margins have dropped by 1.3% to 1.6%.

Meanwhile, the net profit for the quarter is Rs.555.65 million, having weakened by 62% YoY as its EPS stands at PKR 5.58. According to Mr. Muhammad Nabeel at Pearl Securities, this decline can be attributed to the slowdown in sale of high margin furnace oil and lower inventory gains last year.

APL’s net sales (Rs.115.5 billion) during the 1HFY19 grew by 50.8% YoY, but due to a greater rise in cost of goods sold (+54%), the gross profits (Rs.4 billion) declined by 8.9%.

Additionally, the company’s expenditures on the whole, grew by larger margins as compared to its inflows which resulted in its pre-tax profits (Rs.2.98 billion) to drop by 23.5%, YoY.

The company’s Board of Directors have recommended an interim cash dividend for 1HFY19 at Rs.10 per share, i.e. 100%

Profit and Loss Account for the Half Year Ended December 31, 2018 ('000 Rupees)

 

Dec-18

Dec-17

% Change

Sales

                  131,407,538

                     95,114,773

38.16%

Sales tax

                  (15,880,562)

                  (18,519,533)

-14.25%

Net sales

                  115,526,976

                     76,595,240

50.83%

Cost of products sold

                (111,519,254)

                  (72,196,524)

54.47%

Gross profit

                       4,007,722

                       4,398,716

-8.89%

Other income

                           471,285

                           413,973

13.84%

Operating expenses

                     (1,644,751)

                     (1,216,377)

35.22%

Operating Profit

                       2,834,256

                       3,596,312

-21.19%

Finance income

                           686,036

                           654,268

4.86%

Finance cost

                        (398,121)

                        (258,671)

53.91%

Net finance income

                           287,915

                           395,597

-27.22%

Share of (loss)/profit of associated companies

                             13,265

                           101,490

-86.93%

Other charges

                        (156,785)

                        (200,925)

-21.97%

Profit before taxation

                       2,978,651

                       3,892,474

-23.48%

Provision for income tax

                        (875,469)

                     (1,082,000)

-19.09%

Profit for the year

                       2,103,182

                       2,810,474

-25.17%

Earnings per share – basic and diluted (Rupees)

                               21.13

                               28.24

-25.18%

Copyright Mettis Link News

Posted on: 2019-01-22T14:16:00+05:00

25541