APL_3QFY21 EPS clocked in at PkR15.5 - (Above expectation), (AKD, Off the Analyst's Desk, April 26, 2021)
AKD, Off the Analyst's Desk
APL: 3QFY21 EPS clocked in at PkR15.5 - (Above expectation)
- Attock Petroleum Limited (APL) announced results for 9MFY21 today where company posted PAT of PkR3.7bn (EPS: PkR36.8), up 4.2xYoY largely due to a low base as COVID-19 induced decline in oil prices imparted heavy inventory losses during 3QFY20. The result was significantly above expectations.
- For 3QFY21, company posted PAT of PkR1.5bn (EPS: PkR15.2) against LAT of PkR710mn (LPS: PkR7.1) majorly as increasing oil prices resulted in inventory gains of ~PkR1.5bn. Impact of PkR appreciation remained minimal during the quarter where we believe new pricing mechanism of incorporating exchange gain/losses into prices played a part.
- APL's market share has been on a constant decline with market share for 3QFY21 standing at 9% against 11% for 3QFY20 while market in share in retail fuels stands at 8% against 10% in 3QFY20.
- Even though inventory gains uplifted the result for 3QFY21, we believe the decline in market share is concerning for APL. However, plan to add number of storage sites in medium term is expected to provide some respite and will aid company in expanding its footprint.
- We have a Buy call on the scrip with our TP of PkR406.8/sh providing an upside of 21.4%.
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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