Attock Refinery : Transmission of Quarterly Report for the Period Ended December 31, 2022

ATTOCK REFINERY LIMITED

Condensed Interim Financial Statements

For the Six Months Period Ended December 31, 2022

CONTENTS

	Page No.
COMPANY INFORMATION	02
DIRECTORS' REVIEW REPORT	03
	06
AUDITORS' REVIEW REPORT	07
CONDENSED INTERIM FINANCIAL STATEMENTS
- Statement of Financial Position	08
- Statement of Profit or Loss	10
- Statement of Profit or Loss and Other Comprehensive Income	11
Statement of Changes in Equity	12
- Statement of Cash Flows	13
- Notes to the Financial Statements	14
CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
- Statement of Financial Position	30
- Statement of Profit or Loss	32
- Statement of Profit or Loss and Other Comprehensive Income	33
- Statement of Changes in Equity	34
Statement of Cash Flows	35
- Notes to the Financial Statements	36

01

COMPANY INFORMATION
BOARD OF DIRECTORS	Mr. Laith G. Pharaon		(Alternate Director Mr. Shuaib A. Malik)
	Non Executive Director
	Mr. Wael G. Pharaon		(Alternate Director Mr. Babar Bashir Nawaz)
	Non Executive Director
	Mr. Shuaib A. Malik
	Chairman / Non Executive Director
	Mr. Abdus Sattar
	Non Executive Director
	Mr. Jamil A. Khan
	Non Executive Director
	Mr. Shamim Ahmad Khan
	Independent Non Executive Director
	Mr. Tariq Iqbal Khan
	Independent Non Executive Director
CHIEF EXECUTIVE OFFICER	Mr. M. Adil Khattak
CHIEF FINANCIAL OFFICER	Syed Asad Abbas		FCA
COMPANY SECRETARY	Mr. Saif ur Rehman Mirza	FCA
AUDIT COMMITTEE	Mr. Shamim Ahmad Khan	Chairman
	Mr. Shuaib A. Malik		Member
	Mr. Abdus Sattar		Member
	Mr. Tariq Iqbal Khan		Member
	Mr. Babar Bashir Nawaz	Member
AUDITORS	A.F. Ferguson & Co.		Chartered Accountants
LEGAL ADVISOR	Ali Sibtain Fazli & Associates	Legal Advisors, Advocates & Solicitors
SHARE REGISTRAR	CDC Share Registrar Services Limited
	CDC House, 99-B, Block 'B', S.M.C.H.S.,
	Main Shahra-e-Faisal,Karachi-74400.
REGISTERED OFFICE	The Refinery, Morgah, Rawalpindi.
	Tel : [phone]	Fax : [phone] & 5406229
	E-mail : [e-mail]	Website : www.arl.com.pk
02

DIRECTORS' REVIEW REPORT

IN THE NAME OF ALLAH, THE MOST GRACIOUS, THE MOST MERCIFUL

On behalf of the Board of Directors of Attock Refinery Limited, we are pleased to present review of the financial results and operations of the Company for the second quarter and half year ended December 31, 2022 and the Review Report of Auditors thereon.

FINANCIAL RESULTS

During the period under review the Company earned profit after tax of Rs 14,444 million from refinery operations (December 31, 2021: Profit of Rs 1,078 million). Non-refinery income during this period was Rs 915 million (December 31, 2021: Rs 608 million). Accordingly, overall profit after taxation was Rs 15,359 million with earning per share of Rs 144.06 (December 31, 2021: Profit of Rs 1,686 million with earning per share of Rs 15.82).

Spreads between prices of products and crude oil which started to improve last year maintained the same trend during the second quarter of the current year. This has helped your Company to absorb escalating costs due to elevated inflation.

The Consolidated Financial Statements of the Company are annexed. During the period the Company made a Consolidated profit after tax of Rs 15,909 million (December 31, 2021: Rs 2,360 million) which translates into consolidated earnings per share of Rs 149.21 (December 31, 2021: Rs 22.13).

REFINERY OPERATIONS

During the period under review, the Company supplied 895 thousand Metric Tons of various petroleum products while operating at about 79% of the capacity (December 31, 2021: 878 thousand Metric Tons, 78% capacity). During the month of December 2022, the Company faced challenge of reduced demand of furnace fuel oil creating ullage constraints. Due to this reason, one of its main distillation unit had to be shut down for a few days. However, during the shutdown period, necessary maintenance work was carried out. The matter was taken up with the Government and measures taken by the Government provided some relief to the Refinery.

FUTURE OUTLOOK

The management is aware of the economic challenges being faced by the country due to political instability, devastating floods, high inflation, Pak Rupee devaluation and declining foreign exchange reserves. We hope that the Government would take measures to ensure long term economic stability in the country. With the current state of macro-economic situation, the management's focus would remain on effecting efficiencies in operations leading to increase in revenue and reduction in costs.

Attock Refinery Limited, along with other refineries, continues its engagement with the Government for the approval of the draft Refining Policy. Progress on studies for Continuous Catalyst Regeneration (CCR) Complex, and revamping of DHDS unit is satisfactory. However, improvement in economic situation in the country is a pre-requisite for implementing any up-gradation project.

03