As per latest financial result announcement, Pakistan Petroleum Limited (PPL) posted a profit after tax of PKR 53,546mn (EPS: PKR 19.68) during FY22 compared to PKR 52,431mn (EPS: PKR 19.27) in FY21, depicting an increase of 2% YoY. Meanwhile, bottom-line during 4QFY22 arrived at PKR 1,217mn (EPS: PKR 0.45), down by a massive 91% YoY. In addition to the result, the company announced a final cash dividend of PKR 0.50/share (PKR 2.00/share in FY22).

Result Highlights

· Topline during FY22 climbed up by 36% YoY, clocking-in at PKR 202,199mn amid i) jump in Sui wellhead price by 16% YoY, and ii) surge in oil prices by 71% YoY given a revival in oil demand internationally. Meanwhile, oil and gas production declined by 11% and 6% YoY, respectively. On a quarterly basis, net sales ascended by 71% YoY, settling at PKR 61,766mn in 4QFY22 on account of i) 20% YoY PKR depreciation against USD, ii) massive surge of 66% YoY in oil prices, and iii) increase in Sui wellhead price by 29% YoY.

· Exploration costs climbed up to 132% YoY to reach PKR 23,735mn in FY22 versus PKR 10,227mn in FY21 due to surge in cost of dry wells during the year. Whereas, exploration cost in 4QFY22 swelled up by 110% YoY, settling at PKR 13,909mn owed to higher cost of dry well (Pandrani X-01) tagged with jump in 3D seismic activity during the quarter.

· Other income clocked-in at PKR 14,144mn in FY22 against PKR 4,056mn in SPLY, showing a hefty jump of 3x YoY, which is attributable to exchange gain on foreign currency. During 4QFY22, other income settled at PKR 3,740mn, up by 3x YoY due to aforementioned reason.

· The company booked effective taxation at 94% in 4QFY22 vis-à-vis 17% in 4QFY21. The taxation during this quarter includes super tax imposed on profit before tax of FY22.

Courtesy – AHL Research