Karachi
Attock Petroleum Limited (APL) announced the financial result for 1HFY20, whereby the company has posted a profit after tax (PAT) of PKR 1.58bn (EPS: PKR 15.88) against PKR 2.10bn (EPS: PKR 21.13) in 1HFY19, down by 25% YoY. On quarterly basis, earnings clocked-in at PKR 355mn (EPS: PKR 3.57), down by 36% YoY and 71% QoQ compared to PKR 556mn (EPS: PKR 5.58) and PKR 1,225mn (EPS: PKR 12.31), respectively. Along with the result, company announced an interim cash dividend of PKR 5.00/share in 2QFY20 compared to PKR 10.00/share in 2QFY19. During 2QFY20, topline of the company settled at PKR 57.0bn, down by 1% YoY on account of volumetric decline (-5.2% YoY; volumes of Mogas and HSD dropped by -1.3% and -15.2%). Gross margins of the company fell by 88bps YoY to 1.62% in 2QFY20 compared to 2.50% in 2QFY19. Decline in gross margins can be attributable to the company recording inventory at lower of cost or net realizable value which resulted in inventory loss of PKR 700-800mn, we view. Finance cost jumped up by 100% to PKR 432mn given rise in markup charged on delayed payments and implementation of new accounting standard (IFRS-16) increased finance cost by PKR ~125mn. The company recorded effective taxation at 30.9% in 2QFY20 compared to 34.9% in SPLY.
