Attock Refinery Limited (ARL) is a public limited company incorporated under the Companies Act and is listed on the Pakistan Stock Exchange Limited (PSX). The company was initially incorporated as a private limited company in November 1978 and was subsequently converted into a public limited company in June 1979. As a listed entity, ARL is subject to the regulatory framework of the Securities and Exchange Commission of Pakistan (SECP) and the PSX Rulebook, ensuring adherence to corporate governance standards, transparency, and investor protection.

Attock Refinery Limited (ARL) is the pioneer of crude oil refining in Pakistan, with operations dating back to 1922. The company was established to take over the refining and petroleum supply business of The Attock Oil Company Limited (AOC), laying the foundation for Pakistan’s downstream oil sector. Since its inception, ARL has consistently upgraded and replaced its facilities with state-of-the-art technology, enabling it to remain competitive and responsive to evolving industry challenges, regulatory requirements, and market demands.

The Company is engaged in refining a variety of crude oil. It has a unique capability to process lightest to heaviest crude. The Company produces wide range of petroleum products including High Speed Diesel, Premier Motor Gasoline, Furnace Oil, Kerosene, and Jet Fuels etc. ARL's current nameplate capacity stands at 53,400 bpd, and it possesses the capability to process lightest to heaviest (10-65 API) crudes. The Company is ISO 9001, ISO 14001, and ISO 45001 certified.

Attock Group, through Attock Oil Company (AOC) (-61.06%), retains the majority stake and management control in ARL. Other major shareholders consist of a) Individuals (Local & Foreign) (~14.89% ), b) Institutions (~24.05%), including Banks, NBFIs, Joint Stock Companies, Modarabas, and Mutual Funds.

The ownership structure of Attock Refinery Limited (ARL) has remained stable and resilient, supported by shareholders with a long-term strategic outlook. With a legacy spanning over 100 years of continuous operations in the oil refining sector, this consistent ownership has been instrumental in guiding the company through industry cycles, enabling sustained investment in modernization, operational excellence, and adaptability to evolving market and regulatory environments.

The Group holds a prominent position across the oil sector value chain—spanning upstream, midstream, and downstream operations—supported by robust technical expertise and decades of industry experience. Its presence of over a century in the local market underscores the Group’s strong business acumen, operational excellence, and enduring commitment to the energy sector.

The Company is part of the Attock Oil Group of Companies, a diversified business conglomerate with established operations across multiple sectors, including oil exploration and production, refining, oil marketing, cement, power generation, and information technology.

ARL's Board of Directors comprises of seven members, including five Non-Executive members and two Independent Non-Executive directors.

ARL’s Board comprises seasoned professionals with extensive experience in the oil and gas sector, as well as in broader areas of finance, regulation, and corporate governance. Many board members also serve on the boards of other prominent companies across diverse industries, bringing valuable insights to their supervisory and advisory roles. Mr. Shuaib A. Malik, Chairman of ARL, has been associated with the Attock Group of Companies for over four decades. He possesses comprehensive experience across the upstream, midstream, and downstream petroleum sectors. In addition to serving as Group Chief Executive of the Attock Group, he holds several key leadership positions, including Chairman & Chief Executive of Pakistan Oilfields Limited, Chairman of National Refinery Limited, and CEO of both The Attock Oil Company Limited and Attock Petroleum Limited. Mr. Abdus Sattar has over 36 years of financial management experience, having held senior roles in government ministries and commercial organizations. His work has focused on cost control, consumer protection, subsidy management, revenue enhancement, and the pricing of gas and petroleum products. Mr. Shamim Ahmad Khan has held senior positions in the Government of Pakistan, including Secretary of the Ministry of Commerce. He also served for a decade at the Corporate Law Authority (now SECP), where he was Member and later Chairman, contributing significantly to regulatory development in the corporate sector. Mr. Tariq Iqbal Khan, a fellow member of the Institute of Chartered Accountants of Pakistan, brings over 40 years of diversified experience. He played a foundational role in establishing the Islamabad Stock Exchange and served as its President. His previous roles include Member of Tax Policy & Coordination at the CBR, Commissioner and acting Chairman of the SECP, and Chairman of the Audit Oversight Board. He currently serves on the boards of Packages Limited, Silk Bank Limited, Interloop Limited, and Sui Northern Gas Pipelines Limited, and is Chairman of Packages Converters Limited. Mr. Mohammad Haroon brings over 25 years of experience in the oil and telecommunications sectors, with a strong focus on downstream operations. He was a key member in establishing Attock Petroleum Limited, now one of Pakistan’s leading oil marketing companies. Mr. Babar Bashir Nawaz has served the Attock Group of Companies for over 40 years across various leadership roles in finance, marketing, HR, and general management. He has been serving as the Chief Executive Officer of Attock Cement Pakistan Limited since 2002.

The Board of Directors conducts regular meetings each quarter, with full attendance from all members, to review and approve the Company’s financial results and to discuss matters concerning the operational performance of the refinery. To ensure effective governance and oversight, the Board has constituted three specialized committees: the Audit Committee, the Technical and Finance Committee, and the HR & Remuneration Committee. These committees play a vital role in supporting the Board’s decision-making processes, enhancing transparency, and promoting efficient and accountable management practices across the organization.

The Board of Directors adheres to the Code of Corporate Governance issued by the Securities and Exchange Commission of Pakistan (SECP), which sets out principles of transparency, accountability, and ethical conduct. As a listed entity, the Board ensures the timely preparation and dissemination of financial statements and other material disclosures to stakeholders. Both the Board and management remain firmly committed to upholding high standards of corporate governance, with a strong focus on transparency and responsible disclosure. For the financial year ended June 30, 2024, and the six-month period ended December 31, 2024, A. F. Ferguson & Co., Chartered Accountants, served as the Company’s external auditors and issued an unqualified opinion on the Company’s financial statements for FY24, reaffirming the integrity and accuracy of the financial reporting process.

ARL’s organizational structure is designed to ensure efficient operations through the effective functioning of nine key departments. Each department is led by a seasoned professional who reports directly to the Chief Executive Officer, promoting accountability and streamlined decision-making. The major departments include: Technical Services, Planning and Development; Operations; Commercial & Material Management; Finance & Corporate Affairs; Human Resource & Administration; Maintenance; Engineering; Health, Safety, Environment & Quality (HSE&Q); and Business Review & Assurance. This structured approach enables ARL to maintain operational excellence, enhance coordination, and drive continuous improvement across all areas of the business.

Each division at ARL is led by a Senior Manager or General Manager, many of whom have been associated with the Company for an extended period. Their long-standing affiliation brings deep institutional knowledge and a strong understanding of the Company's operations. These divisional heads report directly to the Chief Executive Officer, Mr. Adil Khattak, who has been with ARL for the past 48 years. Mr. Khattak possesses extensive experience in engineering, maintenance, human resource management, project management, and marketing. In addition to his role at ARL, he also serves as the Chief Executive Officer of Attock Gen Limited and National Cleaner Production Centre Foundation, President of the Attock Sahara Foundation, Chairman of the Oil Companies Advisory Council (OCAC), and is a Member of the Managing Committee of the Overseas Investors Chamber of Commerce and Industry (OICCI).

To ensure effective oversight and facilitate informed decision-making, ARL has established various specialized committees responsible for overseeing key operational and financial matters. These include the Management Committee, Value & Ethics Committee, Succession Planning and Career Management Committee, Econo-Tech Committee, Budget Committee, Appraisal Committee, Pricing Committee, Central HSE Committee, Bid Evaluation Committee, Risk Management & Strategic Plan Committee, Standing Committee for Gender Justice, Training Steering & Scholarship Committee, and the Information Technology Committee. Complementing these governance structures, a well-defined hierarchical framework supports efficient reporting lines and delegation of authority, contributing to streamlined operations and strategic clarity across the organization.

Attock Refinery Limited (ARL) employs an integrated ERP suite to efficiently manage and streamline its core business functions. The ERP ecosystem comprises Oracle Financials for financial operations, Maximo for plant maintenance, inventory, and procurement, Millsoft HRMS for human resource management, and Oil Accounting ERP tailored specifically for refinery operations. These interconnected modules facilitate seamless data flow across departments, ensuring data consistency and supporting informed decision-making throughout the organization. Continuous commitment from ARL’s leadership ensures that the ERP system is regularly updated to adapt to evolving business requirements and technological advancements.

ARL is committed to effectively managing risks associated with ERP projects through the implementation of both standard best practices and alternative control measures. The scope of internal auditing within the Company is well-defined, encompassing a comprehensive review and evaluation of internal control systems. ARL conducts regular audits and risk assessments of its activities, processes, and products to set and review objectives and targets. These efforts provide assurance, enhance HSEQ (Health, Safety, Environment, and Quality) standards, and support effective loss control.

The combined refining capacity of Pakistan stands at 19.8 million metric tons per annum (MTPA). During 9MFY25, total consumption of refined petroleum products—including Motor Spirit (MS), High-Speed Diesel (HSD), Kerosene, Jet Fuel, and Furnace Oil (FO)—was recorded at approximately 12.74 million metric tons (FY24: 16.71 million MT). Local refineries maintained their position and contributed 6.94 million MT (FY24: 10.08 million MT), enabling the country to meet 62% of its demand, with the remainder fulfilled through imports.

The 23% year-on-year decline in consumption was primarily driven by reduced demand for MS and HSD due to rising fuel prices, as well as a significant drop in FO usage for power generation. Additionally, the increased availability of HSD through unregulated channels in the local market negatively impacted refinery sales volumes, resulting in storage challenges and lower capacity utilization.

Moreover, the current refining infrastructure requires technological and operational upgrades to enhance product yield, improve margins, minimize furnace oil production, and reduce carbon emissions through more efficient crude oil conversion. In response, refineries are undertaking upgradation and expansion projects in alignment with the newly approved Refinery Policy.

During 9MFY25, Attock Refinery Limited (ARL) supplied 1.266 million metric tons of various petroleum products while operating at 71% of its installed capacity. Based on the volumes supplied, the Company captured a 15% share of the domestic market. Notably, ARL remains the only refinery in the country that primarily processes locally sourced crude oil, providing it with a significant competitive advantage over its peers that rely on imported crude.

For the nine-month period ended March 31, 2025, the Company reported net sales of PKR 235,315 million, down from PKR 286,282 million during the same period last year. Despite a challenging operating environment characterized by reduced demand, ongoing inflationary pressures, declining product prices, and the influx of smuggled fuel, ARL demonstrated resilience. While many refineries faced financial difficulties, ARL maintained profitability, posting a net profit of PKR 7.6 billion.

For the nine-month period ended March 2025, the Company’s Gross Profit Margin declined to 2.3%, compared to 9.1% in the same period last year, primarily reflecting reduced revenues and lower overall profitability. The Net Profit Margin also decreased to 3.3% from 7.3% as of March 2024, impacted by narrower gross refining margins (GRMs) and a shift in the income composition, with higher contributions from bank deposits and short-term investments supporting earnings.

The country’s economy and overall business environment continue to face significant challenges, including rising operational costs, high inflation, and volatile refining margins. Despite these headwinds, the Company was fully prepared to enter into an agreement with OGRA under the Pakistan Oil Refining Policy for Upgradation of Existing Brownfield Refineries, 2023. This agreement was anticipated to support the refinery’s capacity expansion, enhance product output, and reduce furnace oil production. However, the process was disrupted by a policy revision introduced in the Finance Act 2024, which reclassified key petroleum products—Motor Spirit (Petrol), High-Speed Diesel, Kerosene, and Light Diesel Oil (LDO)—from zero-rated to exempt supplies. This reclassification rendered input tax non-recoverable, substantially increasing operating and project costs for refineries. In response, refineries have raised concerns with the Petroleum Division, warning that the change may undermine the financial viability of planned upgrades. Industry stakeholders have called on the government to reconsider the tax exemption status to promote sustainable growth in the refining sector and ensure a stable fuel supply. Consequently, due to this regulatory uncertainty, the finalization of the upgradation agreement remains pending, awaiting further clarity and resolution from the authorities.

ARL’s working capital requirements primarily stem from financing inventory and managing circular debt. As of March 2025, trade receivable days increased to 35 days from 25 days in March 2024, while average trade creditor days also rose to 39 days compared to 30 days in the previous year. Inventory days remained relatively stable at 24 days, compared to 25 days in March 2024. As a result, ARL’s average net working capital cycle stood at 20 days, consistent with the prior year. The Company meets its working capital needs through internal cash generation and maintains a policy of no reliance on short-term borrowings.

ARL maintained a strong cash flow position during the nine months ended FY25, generating Free Cash Flow from Operations (FCFO) of PKR 14,780 million. The Company also demonstrated robust debt servicing capability, reflected in an Interest Coverage Ratio of 253.2x (EBITDA to Finance Cost) during the period.

ARL maintains a strong and conservative capital structure with no reliance on external borrowings. As of March 2025, the Company had neither long-term financing nor short-term loans on its balance sheet. The leverage ratio remained minimal at 0.3%, compared to 0.2% in March 2024, reflecting ARL’s continued focus on financial discipline and self-sufficiency.