Although on a consolidated basis Attock Refinery Limited (PSX: ATRL) gross sales took a dip of 7 percent, the company managed to register an impressive increase in gross profit of 126 percent. The financing cost was also brought down by 14 percent year-on-year, while other income rose by a mere 2 percent. Furthermore, profit after tax from refinery operations managed to increase almost by 106 percent to rise from a loss of Rs487 million in 1QFY15 to a profit of Rs27.6 million in 1QFY16.
This could be attributed to the rise in oil prices as compared to the same period last year when a global supply glut has caused oil prices to dip considerably. The share in profit from associated companies increased by 120 percent as compared to 1QFY15, which ultimately led to the total profit after taxation registering a whopping surge of 483 percent during 1QFY16 as compared to the same period last year.
The stellar bottom-line meant an increase in EPS from a loss of Rs2.14 per share in 1QFY15 to an impressive Rs8.17 for 1QFY16. In compliance with the government's policy framework, Attock Refinery Limited has also started supply of Euro-II compliant High Speed Diesel (HSD) to oil marketing companies.
With oil prices looking to stabilise on a higher note this year, the refinery industry will surely see a surge in profitability and shrug off the poor performance of the previous years. ATRL has also been investing in increasing capacity and has invested in the setting up of an isomerization unit of 7,000 barrels per day to produce environmental friendly gasoline and enhance its production by 20,000 tons per month.
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