Attock Petroleum Limited (PSX: APL) recently announced financial performance for its latest quarter with a whopping rise in earnings for 2QFY24. The OMC’s bottom line in 2QFY24 increased by double. Noticeable growth was also seen in 1HFY24 earnings which grew by over 40 percent year-on-year. The rise in earnings of the oil marketing company has been a factor of growth in the top line as well as lower expenses.

During 2QFY24, the net revenues of the company grew by 19 percent year-on-year, which was led by higher petroleum prices during the quarter and also higher volumetric sales of high-speed diesel. The topline growth in 1HFY24 stood over 14 percent year-on-year - also driven by higher petroleum prices and higher offtake of HSD. During 1HFY24, APL saw its market share increase to 10.1 percent from 9.2 percent in 1HFY23. Despite revenue growth, the company’s gross margins fell during 1HFY24 primarily because of 1QFY24, as 2QFY24 gross margins were seen increasing due to higher margins on retail fuels.

The devaluation of PKR against USD continued in the 2QFY24 quarter as well albeit at a slower pace This resulted in a reduction in exchange losses, leading to a decrease in operating expenses in 1QFY24 and 2QFY24. Overall, operating expenses were down by 26 percent year-on-year in 1HFY24. Additionally, growth in finance income and reduction in finance cost also supported the bottom line of APL during the period under review.

APL has been growing its retail network since FY16. The company is now also investing in LPG business. And with relative immunity to circular debt, the growth prospects are sanguine for APL. Along with the result, the company also announced an interim cash dividend of Rs10 per share.