Though it is expected that there would be no significant and immediate WTO challenge to the oil sector, nevertheless ARL is fully geared to meet the possible challenges and has implemented plans to secure its market through quality products, cost effectiveness and explaining new markets. It has already obtained ISO 9001-2000 certification for the whole company which has been recently recertified for a further period of three years.
During the year under review the company achieved almost full capacity utilisation and its net sales revenue increased by 8.6%. Gross profit shot up by 54.2% to Rs 931.60 million over the preceding year's. Net profit for the year after taxation at Rs 391.96 million registered 40.1% increase and the cash dividend for the year was 50% similar to last year's.
Attock Refinery Limited (ARL) was incorporated as a private limited company in November 1978, to takeover the business of the Attock Oil Company Limited (AOC) relating to refining of crude oil and supplying of refined petroleum products. It was subsequently converted into a public limited company in June 1979. It is listed on the three stock exchanges of the country. ARL is also registered with Central Depository Company of Pakistan Ltd (CDC).
The company has a captive power plant with installed capacity of 7.5 megawatt. ARL's current name plate capacity stands at 37,500 bpd and it possesses the capability to process lightest to heaviest (23-65 API) crudes.
This is the first refinery/first petrochemical plant/first major industry of Pakistan to get ISO 9001-2000 Certificate (2001). ARL is also first refinery/first petrochemical plant/first major industry to get ISO 14001 Certificate (2002). The company is also purchasing the entire shareholding of Attock Cement Pakistan Ltd in an associated company Attock Petroleum Ltd. It has been informed that as WTO and deregulation become a norm, it is considered strategically important by the company to make investment. Moreover this will be a long term investment in an oil marketing company whose last three years EPS ranges between Rs 18.93 to Rs 11.19 and break up value of the share works out to Rs 18.42 per 10-rupees share.
ARL's designed annual capacity has been rated at 13.125 million US barrels 2003 12.862 million US barrels. The actual throughput during the financial year July-June 2003-05, was recorded at 12567 million US barrels showing 3.6% decrease in throughput as compared to the previous year's throughput of 13.032 million barrels. It also shows that there was shortfall in the capacity utilisation as it reached 95.74% capacity utilisation (2003: 101.32%). Due to short upliftment of furnace fuel oil and motor gasoline the refinery throughput had to be curtailed which resulted in the under utilisation of capacity. However, the shortfall was minimal.
The continued availability of crude oil from the southern oil fields with the support of the government, enabled the refinery operation at almost full capacity.
Further, the entire indigenous crude production from the Northern Region including enhanced production from certain fields was processed at the refinery.
During the year under review the company posted net sales revenue at Rs 25.413 billion as against Rs 23.390 billion in the preceding year registering 8.6% growth.
With the recent growth in the number of vehicles, facilitated by banks' consumer finance schemes, the consumption of motor gasoline has gone up which has helped the company in retaining market share.
With a good prospects for a continued economic development in the country, it is expected that the demand for motor gasoline would continue to expand in the years to come.
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Performance Statistics (Million Rupees)
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Balance sheet -As At-
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June 30
2004 2003
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Share Capital-Paid-Up: 291.60 291.60
Reserves & Surplus: 1,211.78 965.62
Shareholders Equity: 1,503.38 1,257.22
Surplus on Revaluation of F/A: 1,923.34 1,923.34
L T Debts: 30.00 90.00
Provisions for Gratuity: 58.54 53.28
Current Liabilities & Provisions:8,838.98 6,338.08
Fixed Assets: 3,524.64 3,747.79
L T Investments: 9.25 9.25
L T Loans & Deposits: 12.63 11.08
Deferred Taxation: 56.19 14.96
Current Assets: 8,751.53 5,878.84
Total Assets: 12,354.24 9,661.92
Sales, Profit & Pay Out:
Sales-Net: 25,412.73 23,389.91
Gross Profit: 931.60 604.02
Other Income: 140.62 207.95
Financial (Charges): (11.73) (69.15)
Profit After Taxation from
Refinery Operations: 775.65 545.20
Income from Non-Refinery Operations less
applicable charges and Taxation: 8.47 10.77
Net Profit For The Year
After Taxation: 391.96 279.72
Earnings Per Share (Rs): 13.44 9.59
(Dividend) Cash @ 50%(2003: @ 50%):145.80 (145.80)
Share Price (Rs) Dated 02/02/05: 119.00 -
Financial Ratios
Price/Earning Ratio: 8.85 -
Book Value Per Share: 51.56 43.11
Price/Book Value Ratio: 2.31 -
Debt/Equity Ratio: 1:99 3:97
Current Ratio: 0.99 0.93
Asset Turn Over Ratio: 2.06 2.42
Days Receivables: 46 28
Days Inventory: 26 19
Gross Profit Margin (%): 3.67 2.58
Net Profit Margin (%): 1.54 1.20
R O A (%): 3.17 2.90
R O C E (%): 11.15 8.41
Capacity & Production (Million US Barrels)
Installed Capacity (Refining): 13.125 12.862
Actual Throughput: 12.567 13.032
Capacity Utilization (%): 95.74 101.32
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COMPANY INFORMATION: Chairman: Tariq Iqbal Khan; Chief Executive: Mohammad Raziuddin: Director: Dr Ghaith R. Pharaon; Company Secretary: S. Ahmad Abid FCA; Registered Office: The Refinery, Morga Rawalpindi (Punjab); Web Address: www.arl.com.pk
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