Latest news with #AttockPetroleumLimited
Business Recorder
5 days ago
- Business
- Business Recorder
A softer FY25 for APL
Attock Petroleum Limited (PSX: APL) had a slower year in FY25 after a very strong fell 25 percent year-on-year as the topline contracted 10 percent. Dividend payout for the year totalled Rs25.5 per share, including a Rs13 final. The revenue decline was driven by softer average refined petroleum prices and a weaker product mix: motor gasoline prices eased, fuel oil offtake slumped, and overall volumes stayed under pressure despite a seasonal lift late in the year. The company still benefited from a healthier fourth quarter—net sales rose double-digits quarter-on-quarter with volumes up amid Kharif sowing—yet this was not enough to offset the full-year drag. Gross profit slipped about 15 percent with the gross margin easing to 3.97 percent for FY25, reflecting muted inventory gains in a year of relatively stable international prices; that said, the fourth-quarter margin improved versus the same quarter last year on smaller inventory losses. The cost and expense mix also moved up. Operating expenses were up by roughly 13 percent year-on-year, while finance costs increased 24 percent. Finance income fell about 25 percent year-on-year as interest rates declined. A brighter spot was the share of profit from associates, helped by a better refining environment in parts of the year that provided some cushion to the core operations. Underlying volumes and market position explain much of the narrative shift. APL's total offtake is estimated at around 1.4 million tons for FY25, down 6 percent year-on-year, which pulled annual market share to about 8.8 percent from roughly 9.9 percent in FY24. The weakness was concentrated in fuel oil (down nearly 48 percent year-on-year), while ex-fuel-oil volumes grew about 2 percent. This composition change and softer retail prices translated into lower inventory gains than the prior year's peaks, capping gross profitability. APL's profits now clearly depend on interest income and inventory changes, while its falling market share shows how competitive the OMC sector is in a weak demand cycle. Even so, it ends FY25 with a solid balance sheet, steady dividendsand better contributions from associates. Growth from LPG and EV-related projects is possible, but the near term will depend on demand recovery, price swings, and interest rates
Business Recorder
30-04-2025
- Business
- Business Recorder
APL 9MFY25: lower profits, rising competition
Attock Petroleum Limited (PSX: APL)announced its financial results for the nine months ended March 2025, reflecting the broader trends and challenges faced by Pakistan's oil marketing sector. The period was marked by declining sales volumes, lower petroleum prices, and intensifying competition, while APL also moved to diversify its operations The OMC posted a 29 percent year-on-year decline in its earnings for 9MFY25 where earnings per share dropped to Rs 61.88 compared to Rs86.65 in the same period last year. The company's net sales fell 12 percent year-on-year, driven by lower petroleum product prices and reduced sales volumes. Gross profit also declined by 25 percent year-on-year, though quarterly gross margins showed slight improvement to 4.7 percent in 3QFY25 due to effective inventory management. APL's sales volumes were under pressure, with MS and HSD volumes declining 5 percent and 17 percent quarter-on-quarter in the latest quarter (3QFY25), respectively, mainly due to seasonal factors like the end of the Rabi sowing season and higher petroleum company's market share shrank by 1 percent year-on-year to 9 percent during 9MFY25 as competition intensified, particularly from Gas & Oil Pakistan (GO), whose aggressive market expansion significantly disrupted incumbents. Despite continued support from finance income generated through investments in T-Bills, PIBs, and mutual funds, finance income declined by 11 percent year-on-year in 9MFY25 due to a sharp cut in interest rates. However, finance cots jumped by 27 percent year-on-year during the period. In a strategic move to diversify and future-proof its business, APL, through its subsidiary Attock Energy (Private) Limited, has partnered with Hub Power Holdings Limited and Green Buy Energy (Private) Limited to develop Pakistan's first electric vehicle (EV) charging and battery swapping infrastructure. This venture, structured as a joint company, aims to establish a network of EV stations powered by renewable energy, aligning APL with the global shift toward cleaner energy and sustainable transportation. The broader oil marketing sector faced a tough environment during 9MFY25. Overall petroleum offtake rose by 4 percent year-on-year, supported by a crackdown on smuggled fuel, declining retail fuel prices, and recovering auto sales. MS and HSD sales increased by 4 percent and 9 percent respectively, while Furnace Oil sales dropped sharply by 39 percent due to a shift away from FO-based power generation. Sector-wide gross margins remained slim at around 3.3 percent during the third quarter, reflecting inventory losses and weaker sales volumes. The competitive landscape became increasingly difficult. Going forward, petroleum demand is expected to strengthen, supported by a gradual economic recovery and lower oil prices. However, pressure from new entrants and regulatory delays, such as the pending OGRA margin hike, remain key risks. Inventory losses are likely to subside if oil prices stabilize, and the ongoing monetary easing could help reduce finance costs, offering some breathing room for sector profitability.
Business Recorder
25-04-2025
- Automotive
- Business Recorder
HUBCO Green to develop ‘EV charging infrastructure' at Attock Petroleum locations
Attock Petroleum Limited (APL) has signed a collaboration agreement with HUBCO Green (Private) Limited (HGL), a wholly owned subsidiary of Hub Power Holding Limited, to develop and market electric vehicle (EV) charging infrastructure at selected APL locations across Pakistan. APL shared this development in a notice to the Pakistan Stock Exchange (PSX) on Friday. 'We are pleased to inform that Attock Petroleum Limited (APL) has signed a collaboration agreement with HUBCO Green (Private) Limited (HGL), a wholly owned subsidiary of Hub Power Holding Limited. 'Under the agreement, APL & HGL will develop and market electric vehicle (EV) charging infrastructure at selected APL locations across Pakistan. The agreement was signed on April 24, 2025,' the notice read. HUBCO Green inaugurated its first EV charging station at Ocean Mall, Karachi on January 21, 2025, with plans to establish advanced and reliable EV charging infrastructure across the country, including motorways, highways, major cities and destination charging avenues including upscale malls and commercial areas. It later announced collaboration agreement with Pakistan State Oil Company Limited (PSO) in February 2025 for the installation of EV charging infrastructure at PSO locations across the country. To expand local EV production, the government granted licenses to 57 EV manufacturers in February this year, including 55 manufacturers for two and three-wheelers, while two for the assembly of four-wheelers. The government also announced to cut the tariff for EV charging stations by 45%, lowering it from Rs71.10 to Rs39.40, at the start of the 2025 to 'make EVs accessible to the masses'.
