Result Preview APL: FY14 EPS expected at PKR58.1 Result expectation Attock Petroleum Limited (APL) is scheduled to announce its FY14 financial results on August 14, 2014. We expect the company to post EPS of PKR58.1, up 24% YoY. 4QFY14 EPS is estimated at PKR14.1, up 22% YoY and 20% QoQ. We expect the company to payout final cash dividend of 28.5/share, in addition to PKR17.5/share already paid during the year. Volumetric growth remains buoyant Volumes for 4QFY14 are estimated to climb by 15% YoY outperforming industry growth (↑7% YoY). Volumetric growth was led by retail fuel volumes where MS and HSD climbed by 14% and 12% respectively. Growth in retail volumes is attributable to CNG curtailment and low base effect. FO volumes also remained buoyant climbing 16% YoY during the quarter on the back of 22% YoY (9,299 GWh) growth in FO based generation during the quarter. Market share continues to consolidate Market share in retail fuels consolidated inching up 0.3% and 1.4% for MS and HSD. The company has added ~41 retail outlets on average over the previous five years while unlevered balance sheet would further allow the company to expand its retail foot print further going forward. We highlight that the company added 35 retail outlets during 9MFY14. Investment perspective We have rolled forward our PT for APL. Our Jun-15 PT of PKR620/sh offers a potential upside of 8.7% along with a FY15 dividend yield of 6.1% at last closing. Offering cumulative shareholder return of 14.8%, we maintain HOLD on the stock.
Posted on: Wed, 13 Aug 2014 06:40:35 +0000
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