Attock Petroleum Limited (PSX: APL) posted a net profit of Rs2.38 billion for the quarter ended September 2024, down by a substantial 54.7% from Rs5.26 billion recorded in the same period last year. This translated into earnings per share (EPS) of Rs19.17, significantly lower than the Rs42.27 per share in the corresponding period last year (SPLY).
The company’s revenue also experienced a notable drop, falling by 17.4% to Rs112.72 billion in Q3 FY24 compared to Rs136.44 billion in Q3 FY23. However, the cost of sales only decreased by 13.9%, leading to a sharp decline in gross profit. Gross profit plummeted by 60.6% to Rs4.05 billion from Rs10.27 billion in SPLY, with gross margins falling to 3.6% from 7.5% in the same quarter last year.
Despite the decline in revenue, other income for the company saw an increase of 30.4%, reaching Rs2.92 billion compared to Rs2.24 billion in the same period last year, providing some relief. However, finance costs surged by 29.8% to Rs485.94 million from Rs374.43 million due to higher interest rates.
On the tax front, APL paid Rs1.51 billion in taxes, reflecting a 57.0% decrease compared to Rs3.51 billion in the corresponding period last year. The effective tax rate stood at 38.8%, marginally lower than the 40.1% recorded in Q3 FY23.
Key Financial Highlights (Q3 FY24 vs Q3 FY23):
- Sales: Rs112.72 billion, down 17.4% YoY
- Cost of Sales: Rs108.67 billion, down 13.9% YoY
- Gross Profit: Rs4.05 billion, down 60.6% YoY
- Gross Margin: 3.6% (compared to 7.5% in Q3 FY23)
- Other Income: Rs2.92 billion, up 30.4% YoY
- Finance Cost: Rs485.94 million, up 29.8% YoY
- Net Profit: Rs2.38 billion, down 54.7% YoY
- Earnings per Share (EPS): Rs19.17, down from Rs42.27 YoY
In conclusion, the significant decline in APL’s profit can be attributed to the drop in sales and the compression of margins, despite a notable rise in other income. Higher finance costs due to increased interest rates further weighed on the company’s profitability.
