Attock Petroleum Declares Rs10 DPS as Profit Surges to Rs7.8bn in 1HY24

Attock Petroleum Limited (PSX: APL) has revealed its financial results for 1HFY24, wherein the profit after tax clocked in at Rs7.8 billion [EPS: Rs62.49] compared to a profit of Rs5.54bn [EPS: Rs44.51] in the same period last year (SPLY).

Considering the significant boost in the company's earnings, the Board of Directors (BoD) has declared an interim cash dividend for the six months ended December 31, 2023, at Rs10/- per share i.e. 100%.

Going by the results, APL recorded its topline at Rs278.41bn in 1HFY24, reflecting a growth of Rs13.56% YoY.

After deducting sales tax and other governmental levies worth Rs6.5bn, the net sales clocked in at Rs271.91bn during the review period.

In line with the uptick in sales, the cost of goods sold also experienced a 14.48% YoY increase. However, on a positive note, the rise in costs was proportionately lower than the increase in sales.

Consequently, the company's gross profit improved by 11.98% YoY, reaching Rs 13.38bn in 1HFY24.

On the expense side, the company observed a fall in Operating expenses by 25.56% YoY to clock in at Rs3.85bn respectively during the review period.

Conversely, other expenses of APL expanded by 58.4% YoY to Rs938.31m in 1HFY24.

During these six months of the ongoing fiscal year, the company incurred a net impairment reversal on its financial assets of Rs32.214m, against a net impairment loss of Rs56.64m recorded in the SPLY.

APL's other income and share of profits through associates both dropped by 43.86% and 88.08% YoY respectively, to Rs473.05m and Rs22.71m in 1HFY24.

The company’s net finance income skyrocketed to Rs3.64bn as compared to Rs1.07bn in 1HFY23, supported by a rise in finance income and a drop in finance costs despite higher interest rates.

On the tax front, the company paid a higher tax worth Rs4.96bn against the Rs2.69bn paid in the corresponding period of last year, depicting a rise of 84.17% YoY.