PACRA Updates Entity Ratings of Attock Refinery Limited – Outlook Stable

Lahore, May 27, 2023 (PPI-OT): The ratings reflect ARL's sound risk absorption capacity emanating from its sizable equity base along with expertise and proven history of operations in the energy sector. The local refinery sector took a toll owing to deteriorating economic conditions of the country. The depreciation of PKR against USD resulted in unpredictable exchange losses to the refineries. ARL's core business remains exposed to the vicissitudes in international crude oil and products prices, which in turn, steer the gross refining margins (GRMs) of the Company. Spreads between prices of petroleum products and crude oil remained healthy during the period resulting in better margins which was translated into exceptional performance.

During the period ended March 2023, the company supplied 1,369 thousand Metric Tons of various petroleum products while operating at about 80% of the capacity (9MFY22: 1,348 thousand Metric Tons, 78% capacity). The Company earned profit after tax of PKR 22,686mln (9MFY22: 2,839mln) from refinery operations with addition of dividend income after tax of PKR 1,313mln (9MFY22: PKR 947mln) from associated companies, resulting in a total profit after taxation of PKR 23,998mln (9MFY22: PKR 3,787mln).

The Company’s profitability was further complemented by additional income on bank deposits. With a strong cash flow position, the Company has repaid its borrowings with no reliance on debt as of March 2023. The government has approved the Pakistan Oil Refining policy for New/Greenfield refineries while negotiations on policy for Current/Brownfield refineries is ongoing. The policy remains crucial for the refineries to enhance their capacities and upgrade their plants in order to meet better product compositions and standards.

The stable outlook reflects on ARL's successful and efficient management of operations to shield its business profile from ongoing external vulnerabilities. Going forward, along with the Attock Group’s remarkable strength and business acumen, the sustenance of current performance will further compliment the ratings.

For more information, contact:


The Pakistan Credit Rating Agency Limited (PACRA)

Awami Complex, FB1, Usman Block New Garden Town,

Lahore, Pakistan

Tel: +92-42-5869504-6

Fax: +92-42-5830425