APL & POL: FY19 Result Previews
Attock Petroleum Limited (APL)’s board meeting is scheduled on Jul 29th ’19 to announce results for FY19 where we expect the company to post PAT of PkR3.9bn (EPS: PkR39.7), down 30.2% as a combination of volatility in oil prices and exchange rate are expected to result in inventory losses of PkR641mn for FY19 while exchange losses are expected to worsen the injury. Increase in topline of 24.5%YoY is purely on the back of increase in prices as volumes for FY19 declined by 9%YoY mainly led by FO which decreased by 30%YoY on the back of reduction in FO-based power generation while retail fuels also felt the burden of economic slowdown and remained flat for FY19. For 4QFY19, PAT is expected to clock in at PkR1.5bn (EPS: PkR15.7), up 4.5x/12% QoQ/YoY mainly on the back of expected inventory gains of PkR1.3bn while volumes posted a sequential increase of 2% however, on YoY basis, declined by 21% with FO again being the major culprit. Along with the result, we also expect a final dividend of PkR13/sh which is in addition to interim dividend of PkR10/sh.
POL is slated to report FY19 results, where we expect the E&P firm to post NPAT of PkR14.8bn (EPS:PkR52.18) rising 26.5%YoY on the back of: 1) higher benchmark crude (FY19 average up ~14%YoY) and weaker PkR vs US$, pushing realized crude prices higher (hike of ~35%/8%YoY for FY19/4QFY19), despite tepid crude flows and small uptick in gas production, 2) curtailed exploration costs where the absence of dry wells for 4QFY19 compares favorably to last year’s expensing of Tolanj East and booking PkR631mn as irrecoverable costs for Joymair Deep 1, while a slowdown in seismic data acquisition aids in compressing costs, and 3) other income is expected to climb 46%YoY, with profit on bank deposits and exchange gains over come slippages in share in profits from NRL and APL. Accompanying the results we expect POL to announce final year payout of PkR24.5/sh in addition to the PkR20/sh already disbursed, assuming the payout ratio is maintained at 90%.
AKD Research
Attock Petroleum Limited is engaged in the procurement, storage and marketing of petroleum and related products. The Company offers a range of lubricants blended with base oils and additives at its Automatic Batch Blending facility. Its products include diesel engine grades, such as GOLD TURBO PLUS, GOLD TURBO, GOLD XTRA and GOLD-50; gasoline engine grades, such as HIDRIVE SUPREME, HIDRIVE SUPER and ATTOCK T-2; industrial grades, such as ATTOCK Hydraulic Oil AW Series, ATTOCK Gear Oil EX Series and ATTOCK TURBINE Oil, and gear oils, which include various specifications, such as EP 140, EP 90, 85W/90 and 85W/140. It has a multi-fuel retail network of approximately 540 retail outlets. The Company's retail outlets also offer compressed natural gas, as well as non-fuel retailing options, such as tuck shops, car services and lubricants. It supplies various types of fuels to various businesses, including manufacturing industry, armed forces, agricultural customers and power producers.
AKD Securities Ltd. is one of the leading securities firm in Pakistan, providing a comprehensive range of investor focused services, including equity brokerage, economic and securities research, investment banking and financial advisory services. AKD Securities accounts for more than 6% of the average daily value of the Karachi Stock Exchange. AKD Securities was the first brokerage house to launch an online trading platform in Pakistan in November 2002 and now has the largest market share with over 6000 customers. This has helped diversify and expand the retail investor base in the country and ushered in a whole new universe of investors to the stock market.
AKD Securities Ltd. caters to a diversified group of domestic and international institutional investors, high net worth individuals and upscale retail clients, including expatriate Pakistanis. With high quality research, unparalleled execution and distribution capability for both regular and large block trades, AKD Securities Ltd. has earned an outstanding reputation in the Pakistani securities industry.Outside of commercial banks, AKD Securities Ltd. is one of the biggest capital market firms in the country. AKD Securities is the leader in raising and providing risk capital in underwriting, market making and mergers and acquisitions in Pakistan. Good corporate governance and professionalism are emphasized throughout the firm and AKD Securities Ltd. is amongst the very few companies to have introduced a firm-wide comprehensive CODE of ETHICS, overseen by an independent compliance manager.Ultimately, our success is based on the quality of service we provide to our customers and the trust and confidence reposed in us by them. Our focus, therefore, remains on customer satisfaction at all levels in the company.
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