Attock Refinery : Transmission of Quarterly Report for the period Ended 30-09-2023

ATTOCK REFINERY LIMITED

Condensed Interim Financial Statements

For the First Quarter Ended September 30, 2023

CONTENTS

	Page No.
COMPANY INFORMATION	02
DIRECTORS' REVIEW REPORT	03
	05
CONDENSED INTERIM FINANCIAL STATEMENTS
- Statement of Financial Position	06
- Statement of Profit or Loss	08
- Statement of Profit or Loss and Other Comprehensive Income	09
Statement of Changes in Equity	10
- Statement of Cash Flows	11
- Notes to the Financial Statements	12
CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
- Statement of Financial Position	26
- Statement of Profit or Loss	28
- Statement of Profit or Loss and Other Comprehensive Income	29
- Statement of Changes in Equity	30
Statement of Cash Flows	31
- Notes to the Financial Statements	32

01

COMPANY INFORMATION
BOARD OF DIRECTORS	Mr. Laith G. Pharaon		(Alternate Director Mr. Mohammad Raziuddin)
	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 first quarter ended September 30, 2023.

FINANCIAL RESULTS

During the quarter under review the Company earned profit after tax of Rs 11,223 million from refinery operations (September 30, 2022: Rs 6,625 million). Non-refinery income during this quarter was Rs 241 million (September 30, 2022: Rs 678 million). Accordingly, overall profit after taxation was Rs 11,464 million with earning per share of Rs 107.53 (September 30, 2022: Rs 7,303 million with earning per share of Rs 68.50).

The Consolidated Financial Statements of the Company are annexed. During the period the Company made a Consolidated profit after tax of Rs 12,301 million (September 30, 2022: Rs 7,518 million) which translates into consolidated earnings per share of Rs 115.38 (September 30, 2022: Rs 70.51).

During the period under review, improvement in spreads between prices of products and crude oil has continued. This development is in line with the global trend in the refining industry. Your Company remained steadfast in its commitment to use every opportunity for improvement in business processes and profitability. The consequent profitability has helped the Company to absorb the escalating operational costs.

REFINERY OPERATIONS

During this quarter, the Company supplied 457 thousand Metric Tons of various petroleum products while operating at 81% of the capacity (September 30, 2022: 448 thousand Metric Tons, 79% capacity). After corrective actions by the Government against the smuggling of petroleum products, the pressure on the Company's sales of HSD has reduced and the Company was able to sell normal volumes.

FUTURE OUTLOOK

The management is aware that economic situation would remain challenging in the near future and the cost of doing business is expected to remain high. Therefore, the management's focus would remain to take proactive measures to improve efficiencies in operations ensuring increase in revenue and costs reduction.

After continuous follow up with the Government, the Refining Policy for brownfield refinery projects has been finally approved. The Company is actively engaged with OGRA to fulfill certain pre-requisite conditions to become eligible for claiming fiscal incentives under the Policy. With approval of the Policy, ARL intends to undertake a major upgradation project for value addition.

ACKNOWLEDGEMENT

The Board would like to acknowledge support received from the Ministry of Energy and all other stakeholders. We highly appreciate our employees for their dedication. We also thank our valued customers and suppliers for their continued trust and support.

On behalf of the Board

M. Adil Khattak	Abdus Sattar
Chief Executive Officer	Director

October 09, 2023

Rawalpindi

03

04

05

Condensed Interim Statement of Financial Position (Unaudited)

As At September 30, 2023

		September 30,
	Note	2023
			Rs '000
EQUITY AND LIABILITIES
SHARE CAPITAL AND RESERVES
Share capital
Authorised
150,000,000 (June 30, 2023: 150,000,000)
ordinary shares of Rs 10 each		1,500,000
Issued, subscribed and paid-up capital
106,616,250 (June 30, 2023: 106,616,250)
ordinary shares of Rs 10 each	5	1,066,163
Reserves and surplus	6	65,010,349
Surplus on revaluation of freehold land		55,160,588
		121,237,100
NON-CURRENT LIABILITIES
Deferred taxation		56,443
CURRENT LIABILITIES
Trade and other payables	7		75,137,145
Unpaid dividend - awaiting remittance by the authorized bank	9		503,762
Unclaimed dividends			11,799
Provision for taxation			14,240,746
		89,893,452
TOTAL EQUITY AND LIABILITIES		211,186,995
CONTINGENCIES AND COMMITMENTS	10

June 30,

2023

Rs '000

1,500,000

1,066,163

53,546,028

55,160,588

109,772,779

211,720

56,942,838

503,762

11,800

9,317,563

66,775,963

176,760,462

06

		September 30,
	Note	2023
		Rs '000
ASSETS
NON-CURRENT ASSETS
PROPERTY, PLANT AND EQUIPMENT
Operating assets	11	63,420,689
Capital work-in-progress	12	1,439,389
Major spare parts and stand-by equipments		169,681
		65,029,759
LONG TERM INVESTMENTS	13	13,264,915
LONG TERM LOANS AND DEPOSITS		44,220
CURRENT ASSETS

June 30,

2023

Rs '000

64,025,304

1,415,437

170,258

65,610,999

13,264,915

47,364

Stores, spares and loose tools
Stock-in-trade	14
Trade debts	15
Loans, advances, deposits, prepayments
and other receivables	16
Dividend receivable from associated company
Short term investment	17
Cash and bank balances	18

5,742,329

27,080,965

47,345,777

3,285,905

299,318

27,728,754

21,365,053

132,848,101

5,749,486

20,608,420

39,513,594

2,700,538

-

14,139,114

15,126,032

97,837,184

TOTAL ASSETS	211,186,995

The annexed notes 1 to 29 form an integral part of these condensed interim financial statements.

176,760,462

Syed Asad Abbas	M. Adil Khattak	Abdus Sattar
Chief Financial Officer	Chief Executive Officer	Director

07

Condensed Interim Statement of Profit or Loss (Unaudited)

For The First Quarter Ended September 30, 2023

Three months ended

		September 30,
		2023
	Note				Rs '000
Gross sales	19	140,798,231
Taxes, duties, levies and price differential	20	(32,948,954)
Net sales		107,849,277
Cost of sales	21	(91,071,558)
Gross profit		16,777,719
Administration expenses				316,058
Distribution cost				20,358
Other charges				1,372,172
		(1,708,588)
Other income	22	3,240,558
Impairment loss on financial assets		(732)
Operating profit		18,308,957
Finance cost	23	90,010
Profit before taxation from refinery operations		18,398,967
Taxation	24	(7,175,597)
Profit after taxation from refinery operations		11,223,370
Income from non-refinery operations less applicable
charges and taxation	25	240,951
Profit after taxation		11,464,321
Earnings per share - basic and diluted (Rupees)
Refinery operations		105.27
Non-refinery operations			2.26
		107.53

September 30,

2022

Rs '000

116,825,757

(17,701,853)

99,123,904

(89,187,178)

9,936,726

347,179

22,899

740,879

(1,110,957)

1,414,565

(4,780)

10,235,554

(347,071)

9,888,483

(3,263,200)

6,625,283

677,838

7,303,121

62.14

6.36

68.50

The annexed notes 1 to 29 form an integral part of these condensed interim financial statements.

Syed Asad Abbas	M. Adil Khattak	Abdus Sattar
Chief Financial Officer	Chief Executive Officer	Director

08

Condensed Interim Statement of Profit or Loss and Other

Comprehensive Income (Unaudited)

For The First Quarter Ended September 30, 2023

		Three months ended
	September 30,	September 30,
	2023	2022
		Rs '000		Rs '000
Profit after taxation	11,464,321	7,303,121
Other comprehensive income for the period	-	-
Total comprehensive income	11,464,321	7,303,121

The annexed notes 1 to 29 form an integral part of these condensed interim financial statements.

Syed Asad Abbas	M. Adil Khattak	Abdus Sattar
Chief Financial Officer	Chief Executive Officer	Director

09