Rawalpindi: Attock Refinery Limited (ARL), one of the leading companies in the oil refinery sector, has announced its financial results for the second quarter and six-month period ended December 31, 2024. The Board of Directors, in a meeting held on January 27, 2025, at POL House, Morgah, Rawalpindi, recommended an interim cash dividend of Rs. 5.00 per share, translating to a 50% payout for the six-month period.

The company reported a significant decline in its gross sales, recording Rs. 220.07 billion for the six months ended December 31, 2024, compared to Rs. 270.21 billion in the same period last year. This decline in sales was accompanied by a reduction in net sales, which amounted to Rs. 160.76 billion, down from Rs. 205.88 billion in the previous year.

Despite the drop in sales, ARL managed to achieve a gross profit of Rs. 4.57 billion for the six-month period. However, this figure marked a substantial decrease compared to the Rs. 20.92 billion gross profit reported during the same period in the previous year. The company's operating profit also followed a similar trend, registering at Rs. 10.44 billion, down from Rs. 25.78 billion in the previous year.

According to information available from the Pakistan Stock Exchange (PSX), the company's profit after taxation from refinery operations stood at Rs. 6.24 billion for the six months ended December 31, 2024, compared to Rs. 15.88 billion for the same period last year. The overall profit for the period, including non-refinery operations, was Rs. 6.89 billion, a significant drop from Rs. 16.41 billion in the previous year.

In terms of cash flows, ARL reported a net cash inflow from operating activities amounting to Rs. 11.06 billion for the six months ended December 31, 2024. On the investment front, the company faced a net cash outflow of Rs. 15.92 billion, primarily due to investments in T-Bills. Meanwhile, the financing activities resulted in a net cash outflow of Rs. 1.33 billion.

The Board decided against any bonus issues or rights shares, maintaining a focus on stabilizing the company's financial standing amidst challenging market conditions. As of December 31, 2024, the company's total equity and liabilities were valued at Rs. 210.01 billion, with total assets matching this valuation.

Despite the challenging market environment, the company continues to maintain a strong asset base, with significant holdings in property, plant, and equipment valued at Rs. 63.31 billion. Additionally, ARL's short-term investments witnessed a notable increase, amounting to Rs. 53.50 billion as of December 31, 2024. The company's cash and bank balances stood at Rs. 32.63 billion, providing a solid liquidity position.

The interim cash dividend declared by ARL reflects the company's commitment to delivering value to its shareholders, despite the prevailing market challenges. The Board remains optimistic about its strategic initiatives and is focused on enhancing operational efficiencies to navigate the dynamic market landscape effectively.