October 20, 2020 (MLN): Attock Refinery Limited (ATRL) has suffered loss after tax of Rs 555.3 million from refinery operations during 1QFY21, compared to the net profits of Rs 16.4 million earned in the same quarter of last year.
Non-refinery income during the quarter was Rs 420.27 million, therefore, net loss for the quarter mentioned above was Rs 135 million, against the profits of Rs 335.8 million during Jul-Sep FY20.
This resulted in loss per share of Rs 1.27 against the earnings per share of Rs 3.15.
Moreover, due to loss suffered by the Company, the Board of Directors has decided not to recommend any cash dividend or bonus shares for the quarter under study.
Since the local refining sector has already been facing severe challenges over last couple of years mainly due to non-uplifting of Furnace Fuel Oil (FFO) and International Maritime Organization (IMO-2020) sulfur specification issue, the situation worsened after eruption of COVID-19 Pandemic in March, 2020.
Due to the COVID-19 Pandemic, there was drastic reduction in demand of petroleum products and ullage issues. Resultantly prices of petroleum products and crude oil crashed leading to massive inventory losses and liquidity crunch.
During the quarter, companies net revenues went down by 21.4% YoY, while its cost of sales also shrank by 19.78% YoY, as a result of this, the gross loss of the company expanded by more than 3x to Rs 771 million from Rs 234 million.
On the other hand, reduction in interest rates and relatively stable exchange rate in comparison to last provided some relief to the Company as its financial charges during the quarter reduced by 44.3% YoY.
Furthermore, the decline in distribution cost by 19% YoY and other charges by 97% YoY due to limited operations amid covid-19 also provided some cushion to company’s income.
Profit and loss account for the first quarter ended September 30th, 2020 ('000 Rupees) | |||
|---|---|---|---|
| Sep-20 | Sep-19 | % Change |
Gross sales | 47,119,988 | 48,868,644 | -3.58% |
Taxes, duties, levies and price differential | (18,668,191) | (12,673,026) | 47.31% |
Net sales | 28,451,797 | 36,195,618 | -21.39% |
Cost of sales | (29,222,826) | (36,429,788) | -19.78% |
Gross profit/(loss) | (771,029) | (234,170) | 229.26% |
Administrative expenses | (203,126) | (188,730) | 7.63% |
Distribution cost | (10,560) | (13,049) | -19.07% |
Other charges | (239) | (8,242) | -97.10% |
Other income | 450,893 | 864,650 | -47.85% |
Impairment loss on financial assets | (41,999) | – | – |
Operating profit/(loss) | (576,060) | 420,459 |
|
Finance cost | (196,726) | (353,541) | -44.36% |
Profit/(loss) before taxation from refinery operations | (772,786) | 66,918 |
|
Taxation | 217,444 | (50,488) |
|
Profit/(loss) after taxation from refinery operations | (555,342) | 16,430 |
|
Income from Non-refinery operations less applicable charges and taxes | 420,274 | 319,451 | 31.56% |
Loss after taxation | (135,068) | 335,881 |
|
Earnings (loss) per share – basic and diluted (rupees): |
|
|
|
Refinery operations | (5.21) | 0.15 |
|
Non-refinery operations | 3.94 | 3.00 | 31.33% |
| (1.27) | 3.15 | -140.32% |
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