Pakistan Petroleum analyst briefing – Key Highlights

Pakistan Petroleum Limited (PPL) conducted its Analyst Briefing today where the company discussed its recent financial performance and outlook.

PPL saw its profitability reached PKR80bn, up 35% YoY, for FY19 with the increase largely emanating from PKR weakness against the dollar.

Moreover, the company managed to offset volumetric decline from Natural Gas production (Sui field primarily) on the back of uptick in Oil and LPG production.

With regards to production targets going forward, the company intends to attain total output of 1bcfd, same levels as FY19. The production decline from Sui field is expected to be mitigated from commencement of production from new wells at Adhi field and other on-field measures.

The company highlighted the potential of Dhok Sultan field, which can add 4,000bpd and 7mmcfd of gas at prime production levels. However, production from the same remains on the lower end as of today and may witness gradual ramp up.

Current exploration activities in Gambat South have yielded output of ~43mmcfd of gas cumulatively. The company intends to continue its focus on the block, likely adding to its production profile. PPL estimates the block to have a potential output of 150-170mmcfd of raw gas.

Compared to the last Energy Sukuk issue to settle circular debt, the company expects better flows in the upcoming Energy Sukuk II towards the upstream companies, easing cash-flow constraints for the company.(Courtesy: BMA Capital Management Ltd.)

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