Attock Petroleum 3QFY19 profit down 80%YoY

Attock Petroleum (APL) has posted profit after tax of Rs284 million (EPS: Rs2.86) for 3QFY19, down 80%YoY. While volumes declined by 8.9%YoY, inventory losses on the back declining oil prices also played a part. According to analysts, the Company has incurred inventory losses of Rs1.3 billion for 3QFY19 against their expectation of Rs750 million. Sequentially, profit declined by 49%QoQ where higher inventory losses more than offset the gains from higher volumes. For 9MFY19, net profit slipped to Rs2.4 billion (EPS: Rs23.99), down 44%YoY as inventory losses and decreasing volumes weigh heavily on the profitability. During 9MFY19, in-line the with the overall industry trend, APL experienced a dismal period where overall sales volumes of the company declined by 25%YoY with furnace oil taking the lead, down 48%YoY. Looking ahead, growth from retail outlet and storage facilities are expected to supplement earnings in the medium term. Encouragingly, the Company has held onto market share in an otherwise tepid demand environment and entrance of new players, where Company’s overall market share improved to 10.7% for 9MFY19.

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