Attock Petroleum Soon To Develop Network Of Modern Petrol Pumps, Sees Fall In Net Profit

[dropcap]O[/dropcap]il industry has faced various issues for the past few years mainly because of fluctuations in global oil prices while constant instability in oil prices has disturbed business at various levels in Pakistan. It is calculated that the local oil demand is rapidly rising and the oil industry in our country and grown 9 percent because of rise in business activities and commencement of development projects in the entire country. Recently in Pakistan, it is also said that the issuance of new licenses to new oil marketing firms has raised competition manifolds. Entry of worldwide players in the oil industry in our country shall not only present many challenges but also present opportunities because of rising demand of petroleum products/commodities.

Attock Petroleum Limited (APL) is the fourth Oil Marketing Company in Pakistan to be granted a marketing license. APL is developing a network of modern petrol pumps, particularly catering to far-flung regions of the country and significantly contributing to the development and expansion of the petroleum sector in Pakistan. The management is steadfast in its commitment to take the company on the path of success and beyond. APL has more strengthen its supply chain cycle to cater to the rising demand and has relied chiefly on imports as an alternate supply source.

APL’s adepts have mentioned that the frequent cargoes of Premier Motor Gasoline (PMG) and Furnace Fuel Oil (FFO) have been imported during the first three month ended September 30, 2017. Along with exploring alternate supply sources, the management has been focusing on enhancement of infrastructure to more strengthen the supply chain and substantial investment has been made in this regard. The officials of the company have also urged that the construction of bulk oil terminals has further progressed and terminals at Mehmood Kot and Shikarpur are due to be commissioned within this year.

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APL management is committed to steer the company on the track to become a model oil marketing company ensuring customer satisfaction in terms of quality and quantity, offering unmatched services and quality petroleum products to its prestigious clientele. It is also mentioned that the management of Attock Petroleum has envisioned a strategy for the Company to synergize its resources and enlarge upon its sustained progress. Translating the vision into objective and making attempts to attain those objectives has led to a milestone of greater than 600 retail outlets as at September 30, 2017. The financial managers of the company also reported that during the three months period ended September 30, 2017, APL registered net sales revenue of Rs38,531 million reflecting a rise of 22 percent as against to Rs31,502 million the corresponding period last year. The volume of the products sold rose by 11 percent against industry growth of 9 percent. Fall in the price during the quarter resulted in inventory losses falling the gross profit by 14 percent. Despite various difficulties, appropriate stock levels were sustained ensuring uninterrupted fuel supplies.

The experts also mentioned in the financial statement that the net profit also decreased by 15 percent as the Company earned profit-after-tax of Rs1,330 million (September 2016: Rs1,563 million). The consequences translate into earnings per share of Rs. 16.04 as against to Rs. 18.85 during the same period last year.

It is also believed that the sustainable growth can be attained through gaining competitive edge, aligning with the operational dynamics of Pakistan and ensuring quick availability of quality products which requires substantial infrastructure development. On this account, APL is investing heavily in development of new bulk oil terminals to improve the storage capacities, improve cost efficiencies, tapping into key regions of Pakistan and ensuring smooth and uninterrupted fuel supplies. APL’s official also reported in the statement that the Construction is underway for terminal at Sahiwal and is predicted to be completed at the close of 2017.