Attock Refinery Posts Second-Highest Profit as Fuel Prices Surge in FY26
Attock Refinery Limited (PSX: ATRL) has reported a remarkable financial performance for the third quarter of FY26, posting its second-highest profit in history. The refinery recorded a net profit of Rs. 11.345 billion, reflecting a massive jump compared to Rs. 1.703 billion in the same period last year.
This translates into a sharp 6.7 times year-on-year increase, highlighting the company’s strong operational and pricing gains. Earnings per share surged to Rs. 106.4 for the quarter, although the company did not announce any dividend payout.
Net sales also showed steady growth, rising 18 percent YoY to Rs. 87.7 billion. The increase was primarily driven by higher production volumes and improved ex-refinery prices. Strong demand for petroleum products played a key role in supporting this growth trajectory.
Sales volumes of key fuels recorded notable increases during the quarter. High-speed diesel (HSD) sales jumped significantly, while motor spirit (MS) and furnace oil (FO) also posted double-digit growth. This rise reflects improved market demand and better supply dynamics.
The company’s gross profit stood at Rs. 17.6 billion, with margins reaching a record 20.1 percent. This marks the highest margin level in the refinery’s history. The improvement was largely attributed to increased refining throughput and a significant expansion in diesel crack spreads.
A major factor behind the profit surge was the widening of refinery crack spreads, particularly for HSD. During the quarter, MS and HSD crack spreads averaged $6.2 per barrel and $57 per barrel, respectively. These levels are well above historical averages, providing a strong boost to overall profitability.
On the volumetric front, MS sales rose to 146,000 tons, while HSD volumes climbed to 152,000 tons. The growth was supported by reduced curtailment and stronger buying activity from oil marketing companies amid expectations of rising fuel prices.
However, furnace oil sales presented a mixed picture. Volumes declined during March 2026, although a significant portion of production was exported. Despite some recovery in international prices, margins for furnace oil remained under pressure.
Other income for the quarter declined by 9 percent YoY to Rs. 2.2 billion. This drop was mainly due to lower interest rates, even though the company maintained a strong cash position.
Overall, Attock Refinery’s performance underscores the impact of favorable pricing trends and operational efficiency. With energy demand expected to remain firm, the company appears well-positioned to sustain momentum in the coming quarters.
