Analysis of
Financial Statements
Attock Refinery Limited
ANALYSIS OF BALANCE SHEET
Share capital and Reserve:
Equity grew by 22% from Rs 22,378 million to Rs 27,328
million as a result of current year’s profitability.
Surplus on revaluation of freehold land:
Revaluation of Company’s freehold land to current
market value has resulted in a surplus in revaluation
reserve.
Long term financing:
During the year long term financing has increased from
Rs 14,614 million to Rs 17,672 million to finance the
ARL Up-gradation Project. After completion of Up-
gradation Project there was a prepayment against said
facility of Rs 1 billion and payment of first installment of
Rs 550 million.
Current liabilities:
Trade and other payables have increased during the
year due to increase in prices of crude oil. Further an
amount of Rs 2.20 billion, being the current portion of
long term finance, is due in next twelve months.
Property, plant and equipment:
Property, plant and equipment have witnessed an
increase, due to further investment in Up-gradation
Project. Property, plant and equipment represent
around 39% of Company’s balance sheet.
Current assets:
Current assets have increased by 57% from Rs 26,714
million to Rs 42,057 million during the current financial
year, denominated mainly by increased cash and bank
balances.
ANALYSIS OF PROFIT AND LOSS
Revenue:
During the current year, sales revenue has increase by
52% from Rs 66,565 million to Rs 101,412 million. This
increase reflects upward trend in international prices
of Petroleum Products which prevailed during the year
as well as increase in Refinery’s production after the
successful completion of Up-gradation Projects.
Cost of Sales:
During the period under review, cost of sales increased
by 44% from Rs 67,467 million to Rs 97,079 million
due to upward trend in prices of crude oil as well as
increase in Refinery’s capacity after Up-gradation
Projects.
Administration and distribution cost:
Administration and distribution cost increased by 13%
from Rs 571 million in 2016 to Rs 644 million in 2017.
Finance cost:
During the year finance cost has increased as a result
of cessation in capitalization of the Finance cost upon
completion of ARL Up-gradation Project and charging
it to Profit & Loss.
Other Income:
Other income increased by 55% from Rs 927 million
to Rs 1,434 million mainly on account of increase in
income from bank deposits.
Provision for taxation:
Provision for taxation has decreased due to utilization
of tax credit for Balancing Modernization and
Replacement (BMR).
Non-refinery income:
Non-refinery income increased from Rs 1,520 million
to Rs 1,715 million due to increase in dividend income
during the year as compared to the last year.
ANALYSIS OF CASH FLOWS STATEMENT
Operating activities:
There was a net cash inflow of Rs 7,157 million during
the year. The main reason was favorable fluctuation in
prices of crude oil and petroleum products, along with
increase in throughput.
Investing activities:
Cash flow from Investing activities has improved
as cash outflow from investing activities decreased
significantly during the current Financial Year
denominating reduced payments on account of Up-
gradation Projects.
Financing activities:
Cash inflow from Long term financing has increased
during the current Financial Year as a result of influx
of funds from Loan facility.
Annual Report • 2017 69