Attock Refinery Limited (ATRL)

Attock Refinery Limited engages in the refining of crude oil primarily in Pakistan. It produces various petroleum products, including liquefied petroleum gas, unleaded petroleum solvent grade, naphtha, premium motor gasoline, mineral turpentine, kerosene oil, high speed diesel, light diesel oil, jute batching oil, furnace fuel oil, low sulfur fuel oil, paving grade asphalts, cut back asphalts, and polymer modified bitumen. The company also offers various quality control laboratory services in the oil-refining sector. In addition, it provides various medical services to the community of Morgah region in Rawalpindi. The company was founded in 1922 and is headquartered in Rawalpindi, Pakistan. Attock Refinery Limited is a subsidiary of The Attock Oil Company Limited.

ATRL Outlook Current Price Nov 30 52 weeks high 52 weeks low Market Capitalisation Shares Outstanding EPS P/E ROA ROE Dividned Rs. 134.75 Rs. 755.90 Rs. 73.47 11,493,231,750 85,293,000 1.48 91.05 0.28% 1.04% N/A

Financial Outlook
ATRL is the fourth largest refinery in terms of market share. PARCO is the market leader with 35% market share followed by Pakistan Refinery Limited (PRL) 17%, National Refinery Limited (NR) 22% and ATRL 14%. YOY, ATRL has been able to grow revenues from 76.5B to 88.2B. Most impressively, the company has been able to reduce the percentage of sales devoted to income tax expense from 0.87% to 0.33%. This was a driver that led to a bottom line growth from 1.4B to 1.7B. The company managed to recover from the slump in 2010. The company reported the revenue of 88,184 mn Rupees in 2010 as compare to 76,546.40 mn Rupees 2009. In addition, net income has also witnessed the surge as compare to the 2009, which is good trigger for the company. Despite the surge in net income as compare to 2009, ATRL has reported decrease in earning per share (EPS). The reason for this inferred is issuance of bonus shares. In terms of liquidity measures generated by current ratio, ATRL lags behind its counterparts. The liquidity position of ATRL has been declining despite the increase in total current assets; on contrary, ATRLs total current assets also witnessed surge. The deteriorating position of the ATRL was the concern of management; it has to think about liquidity position in the market. ATRL has been managing its assets efficiently and effectively, it has been doing better than its competitors. Fixed assets turnover of the company is 32.6 times, which are the highest in the industry that shows the commitment of the company to utilize it fixed assets. However, it is very sluggish at collecting receivables from its customers. ATRLs accounts receivable turnover is 3.5 times, which is very low in the industry. This triggers to conclude that management has to think about the credit policy in order to improve its collection. ATRL hasnt managed its profitability in line with the industry. Returns on Assets marked the number of 0.48%,

300 250 200 150 100 50 Trading Apr 10 2007 Jul 13 2007 Oct 23 2007 Jan 31 2008 May 9 2008 Aug 12 2008 Jan 29 2009 May 8 2009 Aug 11 2009 Nov 19 2009 Mar 2 2010 Jun 4 2010 Sep 7 2010 0

Price Movement Page 1

Ammar A. Memon

ATRL moves opposite to the KSE-100 index. As index rises, the price of ATRL goes down and vice versa. December 01, 2010 trading day can be taken as a proof.

In addition, return has been the main concern of the investors, they account for what comes in their pocket. The results revealed that return in the month of January is negative on ATRL. While, ATRL starts recovering in the month of February. In April, ATRL gives the highest mean daily return. Analyzing the return of the ATRL in the month of November, ATRL reaps lucrative return. December hasnt been good for ATRL, because the price goes down which ultimately leads to the negative daily return. Hence, we suggest the investors to refrain from the investing in ATRL in the month of December. Moreover, one should buy ATRL at the end of January to reap the high return in the month of March and April.

Ammar A. Memon

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