Attock Refinery : Transmission of Quarterly Report for the Period Ended 2021-12-31

CONTENTS

	Page No.
COMPANY INFORMATION	02
DIRECTORS' REVIEW REPORT	03
	06
AUDITORS' REVIEW REPORT	07
CONDENSED INTERIM FINANCIAL STATEMENTS
- Statement of Financial Position	08
- Statement of Profit or Loss	10
- Statement of Profit or Loss and Other Comprehensive Income	11
Statement of Changes in Equity	12
- Statement of Cash Flows	13
- Notes to the Financial Statements	14
CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
- Statement of Financial Position	30
- Statement of Profit or Loss	32
- Statement of Profit or Loss and Other Comprehensive Income	33
- Statement of Changes in Equity	34
Statement of Cash Flows	35
- Notes to the Financial Statements	36

01

COMPANY INFORMATION
BOARD OF DIRECTORS	Mr. Laith G. Pharaon		(Alternate Director Mr. Shuaib A. Malik)
	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 second quarter and half year ended December 31, 2021.

FINANCIAL RESULTS

During the period under review the Company earned profit after tax of Rs 1,078 million from refinery operations (December 31, 2020: Loss of Rs 863 million). Non-refinery income during this period was Rs 608 million (December 31, 2020: Rs 74 million). Accordingly, overall profit after taxation was Rs 1,686 million with earning per share of Rs 15.82 (December 31, 2020: Loss of Rs 789 million with loss per share of Rs 7.40).

Improvement in spreads between prices of products and crude oil which started during first quarter of the year continued during the second quarter of the year. However, advantage of this improvement was largely neutralised by increase in prices of energy, chemicals and associated freight costs. Sharp decline in the value of Pak Rupee versus US Dollar and increase in interest rates have also increased finance cost.

REFINERY OPERATIONS

During the period under review, the Company supplied 878 thousand Metric Tons of various petroleum products while operating at about 78% of the capacity (December 31, 2020: 898 thousand Metric Tons, 76% capacity). Due to non-uplifting of furnace fuel oil, the refinery could not be operated at higher capacity.

100 YEARS OF REFINING OPERATIONS

It is a matter of great pride for all of us to inform that Attock Refinery Limited would be completing 100 years of successful operations on February 11, 2022. It is a long journey of starting refining operations at a very small scale and going through series of successful up-gradations and expansions. This could not have been possible without support of our shareholders and all other stakeholders as well as dedicated commitment of successive managements. We shall endeavor to continue providing high quality diversified environment friendly energy resources and petrochemicals and thus contribute to our national economy.

FUTURE OUTLOOK

Stability in global demand and pricing of crude oil and petroleum products would largely be determined by COVID-19 pandemic and geo-political situation. Due to improvement in global economic activities, the spread between crude oil and product prices is expected to remain positive. Hopefully, COVID-19 may be controlled and implementation of recommended precautions during the year. However, we fear that due to global supply chain management issues and higher financing rates, cost of doing business in Pakistan may remain high.

Approval of the draft Refining Policy by the Government has been awaited since long. The new draft Refining Policy which had been prepared jointly by the Government and the Refining industry after painstaking exercise, envisages certain fiscal and tariff concessions to the refining sector. These incentives are likely to improve financial condition of the refineries ensuring sustainability and enabling much needed upgradation of plants which would enable the refineries to supply environment friendly fuel to the consumers. The refineries have also submitted proposal to the Government to address the issue of non-uplifting of furnace oil which is seriously affecting operations of the refineries. We urge the Government to approve the new Refining Policy at the earliest and to also resolve the issue of non-uplifting of furnace oil in the larger interest of the country.

03

Progress on studies for revamping of DHDS unit and proposed joint venture for up-grading furnace oil is satisfactory while Licensor Front End Engineering Design (FEED) for Continuous Catalyst Regeneration (CCR) Complex has already been completed. However, as these upgradation projects are highly capital intensive, therefore support of the Government in the shape of incentives is envisaged in the draft refining policy.

ACKNOWLEDGEMENT

The Board appreciates continued support received from its employees, valued customers, suppliers as well as Ministry of Energy (Petroleum Division) and other organizations.

On behalf of the Board

M. Adil Khattak	Abdus Sattar
Chief Executive Officer	Director

February 04, 2022

Rawalpindi

04