Islamabad November 8 2024: Issues relating to new refinery policy likely to be resolved next week due to ongoing talks with government, states Attock Refinery Management in briefing to analyst.
“Regarding the New Refinery policy the management shared that the company is ready to sign the refinery policy. However, the Finance Act 2024 has made changes to Sales Tax Act 1990 (tax exemption on the petroleum products) which could hampers the incentives and increase costs for the company (given no input taxes adjustment against output taxes). Therefore signing has been delayed until the the matter is resolved” states AHL research in its briefing notes.
“The sector had talks with government regarding the said issues and the government have committed to resolve this issue. The management believes that the issue is expected to be resolved within a week (10th Nov’24 – 15th Nov’24)” states briefing note.
The refinery has exported 80k to furnace oil during the previous year. For next fiscal year 2025, the management expects the exports to reach ~120k tons.
“The management also highlighted that the due to low sulfur content the company is able to fetch a higher price for the LSFO” states AHL note.
“Keeping in view decline in crude oil supply from Northern region over the years, the government has approved allocation of 5,000bopd of oil from Southern region (particularly Badin Basin in Sindh) to ATRL” states research note.
“Under the new refinery policy there is no cap on the dividends from old reserves states management of ATRL” writes AHL research.
