Abstract:
Attock Refinery Limited (ARL) is among the oldest refineries in Pakistan .Located in Morgah Rawalpindi, it obtains crude’s for processing from the southern oil fields of the country. Backed by a rich experience of more than 80 years of successful operation. The refinery operates at full capacity its nameplate capacity being 40000 barrels per day (bpd).
The declining demand for furnace fuel oil and Motor Gasoline and uncertain oil prices in the international market have lead to further problems for petroleum refining industry that is witnessing reduced profits and profit margin due to government policies reducing demand and an uncertain international oil market.
Given the scenario the performance of Attock refinery has been analyzed from the perspective of short term Creditors. The short term creditors would be the interest in the liquidity or current position of the company. As far as liquidity is concerned the current and quick ratios of ARL 5 year are showing lesser working capital and current assets to pay off its current liabilities. However the main reasons for this lesser working capital is payments of costly mark-up bearing long term loan and increased emphasize on export due to which both cash and stock in trade are lower.
