Pakistan Petroleum Limited (PPL) is scheduled to announce its 1QFY22’s financial result on 25th Oct’21, where we anticipate the company’s profitability to clock-in at PKR 15,854mn (PKR EPS: 5.83) during the quarter compared to PKR 14,351mn (EPS: PKR 5.27) in 1QFY21, up by 10% YoY.

The growth in earnings during 1QFY22 is anticipated on account of i) 5% YoY increase in Sui wellhead price and ii) 70% YoY massive jump in oil prices.

Meanwhile, oil and gas production dropped by 7% and 8%, respectively.

Furthermore, we expect the exploration expense to plummet by 57% YoY in 1QFY22, settling at PKR 980mn amid absence of dry well during the quarter against dry well (Miraj-1) reported in SPLY.

On sequential basis, 11% QoQ increase in net profit is expected to be witnessed on the back of 9% QoQ higher oil prices followed by 2% and 3% QoQ uptick in oil and gas production, respectively.

Courtesy – AHL Research