Attock Refinery Profit Surges 12.8 Times to Rs18.6bn in 1QFY27
KARACHI: Attock Refinery Limited (ATRL) reported a sharp increase in profitability for the first quarter of fiscal year 2026-27, with its unconsolidated profit rising to Rs18.6 billion, compared with Rs1.4 billion in the same period last year.
The refinery posted earnings per share (EPS) of Rs174.90 for the quarter ended September 2026, up from Rs13.62 in the corresponding quarter of the previous fiscal year, marking an approximately 12.8-fold increase year-on-year.
According to a research report, the company’s earnings exceeded expectations, primarily due to higher-than-anticipated gross profit.
ATRL’s profit also increased significantly on a quarterly basis, rising from Rs5.7 billion, or Rs53.20 per share, in the fourth quarter of FY26. The latest earnings were approximately 3.3 times higher than the preceding quarter.
The strong performance reflected higher gross refining margins (GRMs) amid geopolitical tensions in the Gulf region. The absence of inventory losses and one-off adjustments recorded in the previous quarter also contributed to the sequential improvement in profitability.
Gross Margin Rises to 20.2%
Attock Refinery’s gross margin increased to 20.2% in 1QFY27, compared with 1.6% in the same period last year.
According to the research report’s estimates, the refinery’s gross refining margin reached $29 per barrel during the quarter, assuming a 5% deemed duty on high-speed diesel (HSD).
The company signed the amended refinery policy on September 24, 2026. Analysts expect ATRL to book a 7.5% deemed duty from the next quarter.
Net Sales Jump 142%
The refinery’s net sales reached Rs144 billion in the first quarter of FY27, registering an increase of 142% year-on-year and 23% quarter-on-quarter.
The growth in revenue was primarily driven by higher ex-refinery prices and increased product upliftment, according to data from the Oil Companies Advisory Council (OCAC).
Meanwhile, other income increased 48% year-on-year and 7% quarter-on-quarter to Rs3.2 billion during the quarter.
The company’s effective tax rate (ETR) stood at 37% in 1QFY27, compared with 39% in the corresponding period last year and 44% in the fourth quarter of FY26.
Cash Holdings Exceed Market Capitalisation
On the balance sheet front, Attock Refinery held cash and cash equivalents of Rs139 billion, equivalent to approximately Rs1,305 per share.
According to the research report, the company’s cash holdings represented around 105% of its market capitalisation.
The analysts maintained a ‘Buy’ recommendation on ATRL, noting that the stock was trading at an estimated price-to-earnings (P/E) ratio of 3.6 times for FY27.
The strong quarterly earnings, higher refining margins and substantial cash position underpin the analysts’ positive outlook on the refinery’s stock.
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