APL profits likely to stay flat

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Aqeel Abdul Razzak
KARACHI: The after-tax earnings of Attock Petroleum limited (APL) - country's 3rd largest Oil Marketing Company - are expected to post meagre growth of 0.9 per cent to Rs1.48 billion (EPS: Rs25.72) for 1HFY10 against Rs1.46 billion (EPS: Rs25.49) last year, as per "The Financial daily" Research analyst.
Furthermore, we expect company to announce interim dividend of Rs10 per share. APL is scheduled to announce its results tomorrow while board will meet today at 1400 PST to talk about the company's performance for the first half ended December 31, 2009.
Net sales of the company are likely to increase by 14.8 per cent to Rs37.95 billion from Rs33.05 billion mainly due to surge in volumetric sales of 15.45 per cent at 501k tonnes. Gross profit is expected to decline by 2.9 per cent to Rs1.57 billion comparing Rs1.62 billion while gross margin is expected to rise to 4.1 per cent from 4.9 per cent in 1HFY09. On the other hand, income on bank deposits and investments is likely to contribute to surge in bottom line, as it is expected to surge by 24.1 per cent. Similarly, operating expenses are expected to decrease by 2.9 per cent to Rs270.3 million for 1HFY10 as against Rs278.3 million recorded in identical period last year.