Attock Petroleum Exceeds Earnings Forecasts Amid Gross Margin Gains

Karachi: Attock Petroleum Ltd (APL) announced its fourth quarter financial results for fiscal year 2025, reporting a net profit after tax of PKR 2.7 billion, or PKR 21.7 per share, marking an 11% year-on-year decrease. Despite the decline, the earnings surpassed expectations due to slightly elevated gross margins during the period.

For the full fiscal year, APL’s profitability reached PKR 10.4 billion, down 25% compared to the previous year. The company declared a final cash dividend of PKR 13 per share, bringing the total payout for the year to PKR 25.5 per share, compared to PKR 27.5 in fiscal year 2024.

Net sales for the fourth quarter totaled PKR 127.4 billion, a 3% decrease from the previous year, largely due to lower average fuel prices. However, total volumes saw a 7% increase year-on-year during the quarter. APL’s oil marketing company offtakes reached 396,000 tons, reflecting a 7% year-on-year and 17% quarter-on-quarter increase.

The company’s annual volumes amounted to 1.43 million tons, resulting in a market share of 8.8%, down from 9.9% the prior year. Gross margins for the final quarter stood at 4.3%, up from 3.1% in the same period last year, attributed to reduced inventory losses.

Finance income fell to PKR 1.6 billion, a 47% decrease year-on-year, likely due to declining investment yields, even as cash and short-term investment balances increased by 44% to PKR 42 billion as of June 2025. Operating expenses remained steady at PKR 2.2 billion, while finance costs rose by 18% to PKR 535 million.

The company’s effective tax rate for the final quarter was 41.1%, bringing the full-year effective tax rate to 38.8%, compared to 39.7% in fiscal year 2024.

The analysis reiterates a ‘Buy’ recommendation for APL, projecting a target price of PKR 825 per share by December 2025, with an anticipated dividend yield of 6% for fiscal year 2026.