Karachi: In its recent quarterly review, Attock Petroleum Limited (APL) disclosed a significant decrease in its profitability for the three-month period ending September 30, 2024. The company, which is a major player in Pakistan's oil sector, reported a profit after tax of Rs. 2,385 million, a 55% drop from the Rs. 5,260 million recorded in the same period last year.
The decrease in profitability was primarily due to a 17% fall in net sales revenue, which totaled Rs. 112,718 million compared to Rs. 136,439 million in the previous year. This downturn reflects reduced demand influenced by subdued industrial activity, sluggish auto sales, and the ongoing impacts of inflation. According to information available from the Pakistan Stock Exchange (PSX), international oil prices also declined during the quarter, resulting in inventory losses that further diminished gross profit. However, the company benefited from increased finance income and significantly lower exchange losses, which partially offset the decline in net profits.
Despite these challenges, Attock Petroleum has made strides in operational performance and expansion. The economy's slight recovery, indicated by reduced inflationary pressure and an improved current account balance, provided a backdrop for the company's ongoing efforts. APL maintained an uninterrupted supply of products to its customers and secured new contracts to supply various petroleum products to the Pakistan Army and the Air Force, including a notable supply to the Pakistan Air Force at Deosai in Gilgit Baltistan, the world's second-highest plateau.
The company's retail network expansion also progressed, with 11 new retail outlets opened during the quarter, bringing the total to 809. This expansion focuses on enhancing brand visibility and service availability, particularly along motorways and in urban centers. Moreover, APL has diversified its revenue streams by entering the LPG market and strengthening its Non-Fuel Retail (NFR) segment through partnerships with national and international food chains.
Investments in infrastructure have also been a priority, with significant developments in the enhancement of Bulk Oil Storage Terminals across the country. Plans include the addition of new tanks in Rawalpindi and Port Qasim to meet rising regional demand for motor gasoline.
APL's commitment to sustainability was highlighted through its partnership with the National Energy Efficiency and Conservation Authority (NEECA) to develop electric vehicle (EV) charging infrastructure in Pakistan. The company has actively participated in environmental preservation efforts, including a plantation drive in Islamabad in collaboration with the Capital Development Authority (CDA), emphasizing its dedication to a sustainable future.
The Board of Directors expressed gratitude to employees, customers, strategic partners, government authorities, suppliers, and shareholders for their continued support during these challenging times.