Higher inventory gains elevate net profits of Attock Petroleum

October 20, 2020 (MLN): Attock Petroleum Limited has witnessed a 21% YoY increase in net profits for 1QFY21 ended on September 30th, 2020, to Rs 1.485 billion against the net profits of Rs 1.225 billion reported in the same period last year.

The earnings per share of the company also exhibited an increase of 21% YoY to Rs 14.92 as opposed to Rs 12.31 in 1QFY20.

According to the research report by Arif Habib Limited, the top line dropped by 24% YoY to Rs 45 billion due to a decline in volumes of 2% YoY (volumes of Furnace Oil grew by 46%  YoY while  HSD and MS sales witnessed a decline of 29%  and  15%  YoY, respectively) along with lower retail prices of petroleum product prices compared to the same period last year.

During the period under review, the gross margins expanded from 3.03% to 5.78% amid higher inventory gains which supported earnings in 1QFY21.

More notably, financial income plunged by 25%YoY to Rs 385 million while the company bore the financial charges of Rs 416 million, up by 43% YoY during the said period.

In 1QFY21, the company witnessed a loss from associates of Rs 5 million mainly expected from loss by ATRL/NRL during the quarter, a report by Foundation Securities mentioned.

Profit and Loss Account for the Quarter Ended September 30, 2020 ('000 Rupees)

 

Sep-20

Sep-19

% Change

Sales

 52,970,745

 69,318,339

-23.58%

Sales tax and other govt levies

 (7,855,697)

 (10,110,257)

-22.30%

Net sales

 45,115,048

 59,208,082

-23.80%

Cost of products sold

 (42,055,118)

 (57,107,729)

-26.36%

Gross profit

 3,059,930

 2,100,353

45.69%

Other income

 211,288

 293,234

-27.95%

Net impairment losses on financial assets

 (80,835)

 (73,783)

9.56%

Operating expenses

 (863,840)

 (557,886)

54.84%

Operating Profit

 2,326,543

 1,761,918

32.05%

Finance income

 385,139

 516,108

-25.38%

Finance costs

 (416,046)

 (290,466)

43.23%

Net finance income

 (30,907)

 225,642

Share of loss/profit of associated companies

 (5,412)

 (133,626)

-95.95%

Other charges

 (157,544)

 (99,378)

58.53%

Profit before taxation

 2,132,680

 1,754,556

21.55%

Provision for income tax

 (647,224)

 (529,342)

22.27%

Profit for the period

 1,485,456

 1,225,214

21.24%

Earnings per share – basic and diluted (Rupees)

 14.92

 12.31

21.20%

 

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Posted on: 2020-10-20T14:14:00+05:00

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