LAHORE –– The National Refinery Limited (NRL) announced profits of Rs4.8 billion (EPS Rs60.6) in 9MFY11- an increase of 146%YoY. The growth is primarily attributed to strong performance in the lube segment with net margins hovering in the vicinity of 14.7% (versus 10.3% in 9MFY10). Although GRMs during 3QFY11 were slightly weak QoQ, they remained positive during the 9M period.
Distribution expenses in the cumulative period were up 19%YoY at Rs835mn, while financial charges declined to Rs110mn (down 45%YoY). Further, other income rose to Rs1.9bn, from Rs919mn previously. At current levels, the stock is trading at FY11E PE of 4.5x and offers dividend yield of 8%.