Might 26, 2025 (MLN): Pakistan Credit score Score Company Restricted (PACRA) has up to date the entry score of Attock Refinery Restricted (PSX: ATRL) to “AA” for long-term and “Al+” for brief time period with a secure outlook forecast, newest press launch issued by PACRA confirmed.

The assigned rankings mirror ARL’s sturdy threat absorption capability, underpinned by a large fairness base, operational experience, and a long-standing monitor document within the vitality sector.

Throughout the interval, the general petroleum refining trade skilled a decline, marked by diminished consumption of petroleum merchandise and the inflow of smuggled high-speed diesel (HSD), which negatively impacted native demand.

In keeping with this trade pattern, ARL additionally reported a decline in key operational and monetary metrics; nonetheless, the Firm carried out higher relative to its friends, demonstrating higher operational resilience and monetary power regardless of the difficult setting.

ARL stays inherently uncovered to fluctuations in worldwide crude oil and petroleum product costs, which straight have an effect on its gross refining margins (GRMs).

Throughout the interval, unfavorable spreads between crude oil and refined product costs exerted downward stress on GRMs.

Nonetheless, ARL continued to handle operations successfully to mitigate these pressures.

For the 9 months ended March 2025, ARL provided 1.21 million MT of varied petroleum merchandise, in comparison with 1.26m MT in the identical interval final 12 months, working at a diminished capability of 71% in comparison with 75% in 9MFY24.

Revenue after tax from core refinery operations declined to Rs7.69 billion from Rs20.79bn throughout 9MFY24, primarily resulting from decreased petroleum product costs.

Together with after-tax dividend earnings of PKR 897 million from related corporations, the Firm reported a complete revenue after tax ofRs8.59bn (9MFY24: 21.68bn).

Profitability was additional supported by earnings generated from ARL’s short-term funding portfolio.

The Firm maintains zero leverage with no debt in its capital construction, reflecting sturdy monetary stability.

Wanting forward, ARL is poised to signal an settlement with OGRA below the refinery upgradation coverage.

This course of is quickly delayed resulting from latest adjustments within the gross sales tax regime, however is anticipated to progress as soon as fiscal insurance policies are finalized within the upcoming federal finances.

Though the trade’s total outlook remained difficult, characterised by unstable refining margins and slower offtake, ARL’s administration demonstrated sturdy dedication and operational self-discipline, enabling the Firm to keep up its market place.

Moreover, Attock Group’s outstanding power and enterprise acumen together with the sustenance of present efficiency will additional praise the rankings.

Attock Refinery Restricted (ARL) is principally engaged within the refining of crude oil.

The corporate primarily produces premium motor gasoline, jet fuels, kerosene, high-speed diesel, mild diesel oil, furnace gasoline oil, mineral turpentine oil, jute batching oil, LPG, and numerous grades of bitumen.

Attock Group, by Attock Oil Firm (AOC) (~61.06%) and its group firm Attock Petroleum Restricted, retains the bulk stake and administration management in ARL.

Remaining shareholding is split amongst Establishments (24.05%) and Normal Public (14.89%).

ARL’s Board of Administrators contains of seven members, together with 5 Non-Govt members and two Impartial Non-Govt administrators.

The Chairman of the BoD, Mr. Shuaib A. Malik, can be the CEO of Attock Oil Group. Mr. Adil Khattak, the CEO, has intensive expertise within the petroleum sector and has been related to the corporate for over 48 years.

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Posted on: 2025-05-26T13:54:31+05:00