Attock Petroleum’s Profit Dips by 16% in 1H FY23 due to Global Oil Price Hike and Currency Depreciation.
Attock Petroleum Limited, a leading oil marketing company in Pakistan, recently reported its financial performance for the first half of the fiscal year 2023. The company’s profit after tax declined by 16% compared to the same period in the previous year, standing at Rs. 3.3 billion, down from Rs. 3.9 billion. Despite the dip in profits, the company managed to increase its gross turnover by 9% to Rs. 158 billion, up from Rs. 145 billion in the previous year.
The retail segment remained the largest contributor to the company’s revenue, accounting for 72% of the total revenue. The retail segment’s revenue increased by 11% to Rs. 114 billion in the first half of FY23, up from Rs. 102 billion in the previous year. However, the aviation segment’s revenue declined by 10% to Rs. 9.9 billion, down from Rs. 11 billion in the previous year.
The decline in profits can be attributed to multiple factors, including the increase in the cost of sales, which rose by 11% to Rs. 150 billion, up from Rs. 135 billion in the previous year. The increase in the cost of sales was mainly due to the rise in global oil prices and the depreciation of the Pakistani rupee against the US dollar. Additionally, the company’s finance cost increased by 42% to Rs. 1.2 billion, up from Rs. 851 million in the previous year, due to the increase in interest rates in Pakistan.
Despite the decline in profits, Attock Petroleum remains optimistic about the future. The company plans to expand its retail network and increase its product offerings. It is also investing in renewable energy projects, including solar power and electric vehicle charging stations.
As a leading oil marketing company in Pakistan, Attock Petroleum is well-positioned to benefit from the country’s growing energy needs.