Ayesha Mudassar

Attock Refinery Limited (ATRL) posted robust revenue and profit growth in the first quarter (July-September) of the current fiscal year 2023-24 compared to the corresponding period of FY22, reports WealthPK. The net sales revenue increased 9%to Rs107.8 billion in 1QFY24 from Rs99.1 billion in 1QFY23. Furthermore, the company’s gross profit ballooned to Rs16.7 billion from Rs9.9 billion in 1QFY23.

The profit-before-tax skyrocketed to Rs18.3 billion in 1QFY24 from Rs9.8 billion in 1QFY23, registering a whopping 86% growth. The after-tax profit also leapt to Rs11.4 billion in 1QFY24 from Rs7.3 billion in 1QFY23, posting a growth of 57%.

The period under review witnessed record profits owing to high gross refining margins, better inventory management and refinery operations at optimal throughput.

Performance in FY23

In FY23, the company posted revenue of Rs369.2 billion and gross profit of Rs45.04 billion. The net profit stood at Rs29.2 billion, resulting in earnings per share of Rs274.12.

During the year, the refinery contributed Rs103 billion to the national exchequer in the form of taxes and duties. Moreover, the foreign exchange savings of $378 million were also achieved through import substitution and exports. Taking benefit of improved financial performance, the company made a premature settlement of the outstanding long-term loan. The business environment in Pakistan remained extremely challenging and volatile, especially for the oil refining sector. Factors like stringent environmental regulations, reliance on alternative energy sources, economic recession and political instability added to the difficulties of refineries. However, the management met these challenges courageously and continued the smooth operations of the company. The refinery was operated at around 78% of its capacity and supplied 1.768 million tonnes of various petroleum products, thus fully meeting standard quality specifications.

Company profile and future outlook

ATRL, the country’s pioneer in refining crude oil, was incorporated as a private limited company in 1978 before becoming a public company the following year. Backed by a rich experience of successful operations, ATRL has now developed into a cutting-edge refinery with a nameplate capacity of 53,400 barrels per day. Amidst a continuously changing economic landscape, the refinery is striving to be a leading organisation that continuously produces high-quality, diversified, environment-friendly energy resources and petrochemicals.

Credit: INP-WealthPk