What to expect from APL Q2 earnings

AKD Securities has just published a report on APL’s Q2 earnings expectations. The firm expects APL to post a PAT of Rs. 2.4 billion, corresponding to EPS of Rs. 19.5.

For 2QFY25E, Attock Petroleum Limited (APL) is expected to report a PAT of Rs. 2.4 billion which will result in an EPS of Rs. 19.5. The probable YoY decline of 4% represents a challenge to the company’s operational performance. The possible key reasons behind this decline are outlined below:

First, the direct impact from expected lower volumetric offtakes during the quarter will have an adverse effect on revenue generation. Its total offtakes might fall to 365,000 tons (-29 % YoY). The weaker demand in the domestic fuel market will reflect this decline.

Second, APL’s finance income might decline significantly to Rs. 1.9 billion, or 22% down YoY due to falling yields on fixed-income investments during a lower interest rate environment, naturally reducing the company’s non-core income contribution.

But it is likely that APL will not lose inventory in this quarter, which had weighed on past results, contributing to the company’s margins. Gross margins for the quarter is expected to be 3.5% compared to 2.3% for the same period last year (SPLY). The better pricing dynamics and cost efficiency may be the reasons for this anticipated improvement.

A DPS of Rs. 10.0 is expected for the quarter which is in line with the previous year. The consistent dividend policy indicates the company’s desire to continue while weathering operational challenges, with the intention to continue returning cash to shareholders.

AKD Research has awarded a ‘buy’ rating to APL, and a target price (TP) of Rs. 825 per share by December 2025. If everything goes as expected the upside potential from the last closing price is 61%. Despite challenging market conditions, the company, with its expected steady 6.8% FY25E dividend yield, remains a good investment.

What are the analysts saying?

According to our database, APL is covered by 3 different analysts with an average Dec 25 target price of Rs. 684. This includes the lowest target price of Rs. 597 by Arif Habib and the highest target of Rs. 825 by AKD Securities.