IGI Securities Limited – Day Break

Karachi, October 10, 2018 (PPI-OT): Oil and Gas Marketing Companies – Attock Petroleum Limited – APL: Depressed HSD/FO sales to drag EPS down by 9%YoY to PKR 12.13

Attock Petroleum Limited’s (APL) board meeting is scheduled on 12th Oct-18 to announce financial result for 1QFY19, where we expect the company to post earnings of PKR 1.21bn (EPS PKR 12.13), down by 9%YoY,

We estimate drop in earnings on the back a) 26%/+6%YoY drop in FO/HSD sales and, b) likely inventory loss of PKR 95mn. However, decline in earnings is expected to be limited by a) +17%YoY rise in MS sales, b) +72%YoY higher FO prices and, c) stable asphalt prices,

We have a ‘BUY’ call on APL with our Dec-18 target price of PKR 532.6/share, offering +25% upside from its last close.

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