Attock Refinery Limited (ATRL or "the Company") was incorporated in Pakistan on November 8, 1978, as a private limited company and was subsequently converted into a public limited company on June 26, 1979. The Company's shares are listed on the Pakistan Stock Exchange.

ATRL is Pakistan's pioneer in crude oil refining, with operational roots tracing back to 1922. The Company was originally established to assume control of the refining and supply operations previously managed by The Attock Oil Company Limited (AOC). Leveraging over a century of operational expertise, the Company has continuously modernized its facilities to maintain competitiveness and meet evolving market demands.

The Company is principally engaged in the refining of crude oil and the production of a wide range of petroleum products, including High-Speed Diesel (HSD), Premier Motor Gasoline (MOGAS), Jet Petroleum (JP-1/JP-8), and Furnace Oil (FO). ATRL is a versatile refiner with a nameplate capacity of 53,400 barrels per day and possesses a unique capability to process the entire spectrum of crude oils, from light to heavy (10-65 API). Significantly, the Company is the only refinery in Pakistan that operates on 100% indigenous crude oil. Its operations are certified under ISO 9001, ISO 14001, and ISO 45001 for quality, environmental, and safety management.

Majority ownership and management control of ATRL rests with the Attock Group. The Attock Oil Company Limited (AOC), England, holds a 61.06% stake, acting as the direct parent, with Coral Holding Limited as the ultimate parent. The associated company, Attock Petroleum Limited (APL), holds a further 1.68% of the issued share capital. Institutional investors, including banks, funds, and companies, collectively hold approximately 20.14%, while local and foreign individuals account for the remaining 17.12%.

The Company benefits from a historically stable ownership structure, underpinned by the Attock Group's deep-rooted presence in Pakistan's oil and energy sector, which spans over a century. Shareholders have demonstrated a consistent commitment to ongoing investment and operational modernization, ensuring ATRL remains responsive to industry demands and market cycles.

The Attock Group maintains a fully integrated presence across the entire oil and gas value chain, from upstream exploration and production (E&P) to midstream refining and downstream marketing. This vertical integration, supported by deep technical expertise and a long-standing record of successful operations, stands as a testament to its strong business acumen and enduring market leadership in Pakistan.

The Company is an integral part of the Attock Oil Group, a diversified conglomerate with strategic investments across multiple sectors, including E&P, refining, oil marketing, cement, power generation, and information technology. The Group's financial strength is evidenced by the strong backing of its principal sponsor, Pharaon Investment Group Limited Holding (PIGLH), and a portfolio of well-capitalised listed entities, including Pakistan Oilfields Limited (POL) and Attock Petroleum Limited (APL).

The Board of Directors comprises eight members, including the Chief Executive Officer. The Board's composition includes five Non-Executive Directors, two Independent Directors, and one Executive Director. This structure ensures a balanced mix of oversight, independence, and strategic guidance, consistent with best practices in corporate governance.

The Board is composed of highly qualified professionals who provide robust supervisory authority and strategic guidance. Chairman Mr. Shuaib A. Malik brings extensive, multi-decade leadership experience across the Attock Group's integrated oil operations. The Board is further strengthened by members with distinguished backgrounds in senior government finance, regulatory roles, corporate governance, chartered accountancy, and specialized downstream oil marketing, ensuring a powerful blend of industry-specific knowledge and diverse managerial acumen.

The Board exercises its supervisory role by holding regular quarterly meetings to approve financial results and discuss operational matters, with attendance ranging from 80% to 100% during the year. To support effective oversight, the Board operates through three core committees: the Audit Committee, the Technical & Finance Committee, and the HR & Remuneration Committee. All committee meetings were conducted in accordance with governance requirements, reflecting the Board's commitment to accountability and sound corporate governance.

The Board maintains an unwavering commitment to the principles of the SECP's Code of Corporate Governance, ensuring transparency, accountability, and ethical conduct. As a listed entity, the Board guarantees the timely preparation and dissemination of its financial accounts and all other material information. For FY25, the financial statements were subjected to a comprehensive external audit by A.F. Ferguson & Co., Chartered Accountants, who issued an unqualified opinion.

The Company operates under a streamlined organizational structure designed for effective management and clear accountability. ATRL is supported by nine core departments, including Operations, Commercial & Material Management, Finance & Corporate Affairs, Maintenance, Engineering, and Health, Safety, Environment & Quality (HSE&Q). Each department is led by an experienced head who reports directly to the Chief Executive Officer, ensuring comprehensive operational oversight and strong internal controls.

The Company is led by Mr. M. Adil Khattak as Chief Executive Officer, a 48-year veteran of ATRL whose career has endowed him with extensive experience across engineering, maintenance, human resources, project management, and marketing. The leadership team is built upon a foundation of deep institutional knowledge, with each division led by seasoned Senior or General Managers with long-standing tenure at the Company. Syed Asad Abbas serves as Chief Financial Officer, while Mr. Saif ur Rehman Mirza holds the position of Company Secretary.

The Company's operational and financial oversight is managed through a network of thirteen specialized committees, including those for Budget, Pricing, Risk Management, and HSE. This structure is integrated into a well-defined hierarchy, which streamlines reporting and delegation, ensuring decisions are both informed and efficient. The leadership team meets regularly to ensure seamless refinery operations while proactively addressing emerging sector trends.

ATRL leverages an integrated Enterprise Resource Planning (ERP) suite to streamline its core business functions, seamlessly connecting specialized modules including Oracle Financials, Maximo for plant maintenance and procurement, Millsoft HRMS, and a dedicated Oil Accounting ERP for refinery operations. This integration ensures data consistency across all departments and provides a unified platform for informed decision-making.

The Company maintains a proactive risk management approach, particularly for its ERP projects, through a combination of standard practices and alternative controls. A well-defined internal audit function conducts periodic reviews and risk assessments of all activities, processes, and products. The scope of these audits is to evaluate the effectiveness of internal controls, providing assurance, driving continuous improvement of HSEQ standards, and enhancing loss control throughout the organization.

As of 9MFY26, Pakistan's refining sector witnessed a pronounced operational recovery, underpinned by higher refinery upliftment, improved product crack spreads, and stronger MS and HSD sales volumes. Industry-wide refinery production advanced 10.7% YoY in April 2026 to approximately 993k tonnes, driven primarily by higher HSD and MS output, while average sector utilisation improved to 58.1% against 52.5% in April 2025. Among individual refineries, Pakistan Refinery Limited recorded the highest utilisation at 76.1%, followed by National Refinery Limited at 62.4% and Attock Refinery Limited at 59.4%. Sector profitability improved materially during 3QFY26, with listed refineries collectively reporting net profits of approximately PKR 43 billion against a loss of PKR 6 billion in the corresponding period of the prior year, supported by elevated MS and HSD cracks and improved volumetric performance.

Downstream demand, however, remained mixed. OMC sales declined approximately 7% YoY in April 2026 amid elevated fuel prices and geopolitical uncertainty, though FO offtake increased sharply, rising 26.0% YoY to 235k tonnes in the same month. The increase was driven by higher FO-based power generation, as LNG supply disruptions, stemming from Qatar's force majeure, triggered by the Iran war, compelled Pakistan's power sector to operate FO-fired plants at elevated capacity to offset the shortfall in gas availability.

Concurrently, global energy markets experienced extraordinary volatility as escalating geopolitical tensions in the Middle East led to the unprecedented closure of the Strait of Hormuz, a critical artery for approximately 20% of global oil flows. The disruption materially curtailed crude availability and precipitated a sharp escalation in benchmark prices, with the Dubai-Oman crude basket surging by over 100% to peak near USD 170 per barrel during March 2026, while freight, insurance, and Additional War Risk Premiums multiplied manifold, amplifying working capital pressures across the oil supply chain.

Despite the near-term operational recovery, the sector continues to confront structural headwinds, including persistently weak long-term FO demand, a GST deadlock that has effectively frozen the USD 6 billion brownfield refinery upgrade programme, and ongoing uncertainty surrounding fiscal incentives and input tax recoverability. Sustained policy clarity and timely implementation of refinery modernisation plans remain essential to securing long-term sector competitiveness and viability

Pakistan's refining sector is structured as an oligopoly comprising five principal players: PARCO, Attock Refinery Limited (ATRL), National Refinery Limited (NRL), Pakistan Refinery Limited (PRL), and Cnergyico, with PARCO holding the dominant position. PARCO's market share stood at approximately 50.2% in 1QFY26 (1QFY25: 46.3%), reinforcing its sector leadership. ATRL and NRL maintained mid-tier positioning, with ATRL accounting for approximately 12% of sector volumes in 1QFY26 (1QFY25: 13%), reflecting the operational challenges of lower crude receipts and product upliftment constraints that persisted through the first half of the fiscal year.

The unique advantage of processing 100% indigenous crude oil enabled ATRL to remain largely shielded from direct international crude supply disruptions during the Strait of Hormuz crisis, allowing the Company to capitalize on the sharp expansion in refinery margins during 3QFY26 despite the modest decline in overall sales volumes.

For the nine months ended March 31, 2026, ATRL reported gross sales of PKR 332.9 billion (March 31, 2025: PKR 320.1 billion), with local sales contributing PKR 317.7 billion (March 31, 2025: PKR 304.6 billion) and export sales amounting to PKR 15.2 billion (March 31, 2025: PKR 15.5 billion). After deducting taxes, duties, levies, and price differentials of PKR 108.1 billion (March 31, 2025: PKR 84.8 billion), net revenues stood at PKR 224.8 billion (March 31, 2025: PKR 235.3 billion), representing a modest decline of 4.5% year-on-year. The contraction in topline was primarily attributable to lower international oil prices during the first half of the fiscal year, which reduced per-unit revenue realization, alongside a structural shift away from Furnace Oil (FO) for power generation that compressed the volumetric offtake. However, revenue performance improved markedly in 3QFY26, supported by the sharp increase in international product prices following the closure of the Strait of Hormuz, which drove product premiums and crack spreads to elevated levels. HSD revenues for the nine months reached PKR 134.8 billion (March 31, 2025: PKR 117.7 billion), while Motor Gasoline revenues amounted to PKR 139.2 billion (March 31, 2025: PKR 135.4 billion), collectively reflecting the uplift from both higher volumes and elevated product prices during the latter part of the period. Non-refinery income declined to PKR 656 million (March 31, 2025: PKR 897 million), reflecting lower profit rates on short-term investments and deposit placements, partially offsetting the strong operational recovery.

ATRL's profitability ratios staged a significant recovery during 9MFY26, driven by the extraordinary widening of international product crack spreads following the geopolitical escalation in the Gulf region. Gross profit surged to PKR 22.6 billion (9MFY25: PKR 9.7 billion), representing a year-on-year increase of 132%. The Gross Profit Margin (GPM) correspondingly improved to 10.0%, compared to 4.1% in 9MFY25 and 3.2% for the full fiscal year FY25, as reported in the Company's condensed interim financial statements. The operating profit margin strengthened to 8.6% (9MFY25: 2.1%), reflecting tight control over administration and distribution costs. Administration expenses for the nine-month period stood at PKR 886 million (9MFY25: PKR 819 million), while distribution costs were PKR 51 million (9MFY25: PKR 48 million), collectively increasing only modestly by 3.6% year-on-year against a 132% surge in gross profit. The Net Profit Margin reached 7.0% (9MFY25: 3.7%), with total Profit After Tax for the nine-month period amounting to PKR 16.4 billion (9MFY25: PKR 8.6 billion), an increase of 90% year-on-year. The effective tax rate remained stable at approximately 38.5% (9MFY25: 38.5%). The unique advantage of processing 100% indigenous crude oil insulated ATRL from the international supply disruptions that affected its peers, enabling the Company to realize substantially higher per-barrel margins on volumes processed during the period of peak price volatility. The decline in non-refinery income, however, slightly reduced overall profitability growth.

Amid a challenging economic climate, the Company is firmly committed to its environmental and operational sustainability through a crucial refinery upgradation project. This initiative, aligned with the Pakistan Oil Refining Policy 2023, is designed to produce Euro-V-compliant fuels, significantly reducing environmental impact. The Company has advanced this goal by signing the Front-End Engineering Design (FEED) agreement with STP of Italy. However, the project's financial viability was challenged by a policy change in the Finance Act 2024, which reclassified key petroleum products as "exempt supplies" for sales tax purposes, making input tax non-recoverable. While interim fiscal relief for FY25 was secured, the final investment decision remains on hold pending a permanent government resolution. On the commercial front, the Company continues to engage with relevant government forums to address concerns arising from the imposition of Petroleum Levy and Climate Support Levy on Furnace Oil, which has structurally weakened domestic FO demand and compelled the Company to export approximately 140,700 MT of FO during 9MFY26 to maintain operational flexibility.

ATRL maintains an efficient working capital position, underpinned by its debt-free balance sheet and strong liquidity generation. As of March 31, 2026, current assets stood at PKR 174.0 billion against current liabilities of PKR 92.3 billion, yielding a current ratio of 1.4x. The increase in stock-in-trade to PKR 32.4 billion and trade debts to PKR 32.3 billion reflected the elevated crude price environment and higher sales activity during 3QFY26, following sharp increases in international product prices due to tensions in the Gulf region. Trade payables correspondingly rose to PKR 80.6 billion, reflecting higher-priced crude procurement and accumulation of statutory liabilities. The Company continues to fund all working capital requirements entirely through internal cash generation, with no drawdowns against its available PKR 3.0 billion short-term facility. Liquid resources of PKR 98.3 billion (cash and short-term investments) provide headroom to manage market volatility.

ATRL's coverage metrics are fundamentally strong, supported by its debt-free capital structure. For FY25, net cash from operating activities amounted to PKR 7,174 million, reflecting challenging refining margins and lower throughput due to reduced crude receipts and forced production curtailments. Despite these headwinds, minimal finance costs ensured earnings remained sufficient to cover interest obligations. The significant recovery in profitability during 9MFY26, driven by a widening of product margins following the Strait of Hormuz disruption, is expected to restore coverage metrics to historically strong levels. The absence of outstanding borrowings eliminates near-term debt service risk, while the Board's prudent financial management reinforces the Company's capacity to meet all financial obligations.

ATRL maintains a strong, debt-free capital structure, underpinned by strong internal cash generation and the full repayment of all long-term and working capital financing facilities. As of March 31, 2026, total borrowings remain at zero, with only a current portion of lease liability of PKR 0.3 million reported in the previous fiscal year having been fully extinguished. The leverage ratio (total borrowings to total borrowings plus shareholders' equity) stands at a negligible 0.0% (June 30, 2025: 0.2%), highlighting the Company's minimal reliance on external debt and reinforcing its financial autonomy. Shareholders' equity strengthened to PKR 159.2 billion (June 30, 2025: PKR 143.7 billion), supported by the return to strong profitability during the nine-month period and consequent accretion to reserves. Unappropriated profit increased to PKR 51.1 billion (June 30, 2025: PKR 45.2 billion), representing the accumulated earnings available for future distribution or reinvestment. The Company's capital structure is further reinforced by substantial cash and bank balances of PKR 51.7 billion and short-term investments of PKR 46.6 billion, providing total liquid resources of approximately PKR 98.3 billion. The interest or markup payable days remain at zero, reflecting the Company's clean liability profile. Sustained profitability, continued prudent financial management, and disciplined capital allocation will be essential to maintaining this sector-leading balance sheet strength as the Company evaluates potential investments in refinery upgradation projects under the Brownfield Policy.