Attock Refinery Limited (ATRL) reported earnings per share of PKR 83.93 for FY25, compared to PKR 234.95 in FY24. Furthermore, in 1QFY26, the company reported earnings per share of PKR 22.52, compared to earnings per share of PKR 34.82 in the same period last year (SPLY). With a decline in local furnace oil consumption, the company has commenced exports, having already shipped approximately 137,880 tons of Furnace Fuel Oil. A Petroleum Levy and a Climate Support Levy have also been imposed on FFO.
The company has faced challenges in ensuring crude oil availability from the northern region. Although supply has recently improved, past shortages necessitated crude imports from the south, averaging around 15,000 barrels per day (bpd). The company is currently in discussions with a supplier to secure an additional 5,000 barrels of crude.
The refinery possesses the capacity to process heavier crude available in the southern region. It has submitted a proposal to the government seeking approval to import crude from the south, along with a request that the freight costs incurred in transporting crude to the north be compensated through the IFEM. The company’s designed throughput stands at 53,400 bpd. Its major customers include Attock Petroleum Limited (APL), contributing 30% of total sales, and Pakistan State Oil (PSO), accounting for 29%. As part of its upgradation initiative, the company plans to enhance Premium Motor Gasoline (PMG) production by 25% and reduce chemical costs.
The revamping of ARL’s Diesel Hydrodesulfurization (DHDS) unit will also enable the production of Euro-V compliant fuels. Under the sales tax exemption head, the company received PKR 3.4 billion during FY25 and PKR 600 million during 1QFY26. During 1QFY26, capacity utilization remained subdued, with throughput around 65%. Despite favorable Gross Refining Margins (GRMs), the company was unable to fully capitalize on them due to lower sales volumes. The company primarily processes lighter crude, with an average processing cost of about USD 7 per barrel. Furnace oil output remains relatively low at around 15% of total production. levy has also been implemented on supply of furnace oil to local IPPs.
Currently, the company enjoys a 7.5% duty advantage on diesel. Upon the signing of the upgradation project, it will gain a 10% duty retention advantage on both petrol and diesel.
Important Disclosures
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