Attock Refinery swings to profit

February 04, 2022 (MLN): Attock Refinery Limited (PSX: ATRL) has revealed its financial statement today for the half-year ended on December 31, 2021, as per which the company reported a profit after tax of Rs2.36billion (EPS: Rs22.13), a turnaround from the same period when it suffered a loss of Rs224mn (LPS:2.10).

The profitability of the company is largely attributable to net sales and share of profits from its associated companies.

Going by the financial result sent to PSX, the net sales of the company increased by 84.3% YoY, while its cost of sales also surged by 77% YoY, as a result of this, the gross profit of the company clocked in at Rs1.77bn in 1HFY22.

On the expense front, the company witnessed a meagre dip of 8.2% YoY in its administrative expense during the said period to stand at Rs450mn. On the other hand, the distribution cost of the company increased by 81% YoY to Rs38.47mn.

The other major highlight was a share of the profit earned by associated companies that surged by more than two-fold to Rs1.26bn. Meanwhile, the company witnessed an Rs263mn impairment reversal on financial assets during the period under review against the impairment loss of Rs91mn in 1HFY21.

On the other hand, the financial cost of the company stood at Rs650mn during 1HFY22, depicting an increase of 64% YoY, mainly on the back of higher interest rate regime which has somewhat offset the impact of sales revenue.

Among other line items, the other income of the company observed a decline of 19%YoY to Rs777mn that restricted its bottom line.

The company booked a tax expense of Rs452mn during 1HFY22 against a tax reversal of Rs337mn in 1HFY21.

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