KARACHI, Aug 20: Attock Petroleum Limited (APL) announced on Monday that it proposed to invest in shares of associated companies: National Refinery, Attock Refinery, Pakistan Oilfields and Attock Cement Pakistan.

A meeting of the board of directors held on Monday resolved that the chief executive be authorised “to invest from time to time as may be considered appropriate, through the Stock Exchange(s), for purchase of shares in the (above four) companies, collectively called the “investee companies”.

The announcement made at the KSE stated that the shares were proposed to be purchased through the stock exchange from the general public including shares held by any large shareholder(s) to the extent of a maximum of 2.5 per cent of the paid-up capital of each investee company (in addition to the existing investment of 1pc in NRL) with overall amount not to exceed Rs2,500 million at the price(s) ruling on the date of such purchase(s).

The ‘material information’ was conveyed by the company to the KSE in accordance with the Listing Regulation No.28 and Clause (xxiii) of the Listing Regulation No.37 under Code of Corporate Governance.

Earlier, the board approved financial results and appropriations for the year ended June 30, 2007. The payouts proposed included: cash dividend at Rs14 (140 per cent). No interim was earlier announced.

The company posted profit after tax in the sum of Rs1,728 million, translating into earnings per share (eps) at Rs43.22 for the year ended June 30, 2007. This compared with PAT at Rs1,393 million and eps of Rs34.82 the previous year. Sales amounted to Rs49.9 billion for the year under review and Rs46.2 billion the earlier year.

The results appeared to be in line with most analysts’ expectations, but the board’s decision to issue bonus shares and invest sum to the extent of Rs2.5 billion in associated companies were elements of surprise for most investors.