As per the latest financial result announcement, Pakistan Petroleum Limited (PPL) posted a bottom-line of PKR 11,881mn (EPS: PKR 4.37) during 3QFY21 compared to PKR 14,674mn (EPS: PKR 5.40) in 3QFY20, down by 19% YoY. Whereas, during 9MFY21, earnings settled at PKR 38,118mn (EPS: PKR 14.01), witnessing a dip of 3% YoY.

Result Highlights

· Net Sales during 3QFY21 dropped by 10% YoY, clocking-in at PKR 36,696mn compared to PKR 40,818mn in SPLY owed to: i) fall in wellhead price of Sui by 13% YoY, and ii) drop in gas production by 1% YoY. On a cumulative basis, topline tumbled by 11% YoY, arriving at PKR 112,235mn in 9MFY21 amid: i) decrease in oil and gas production by 1% and 3% YoY, respectively and iii) plunge in oil prices by 19% YoY.

· The exploration costs reached PKR 470mn in 3QFY21, plummeting by 77% YoY, owed to one dry well (Qadirpur Dep X-01) during the quarter against two dry wells (Zarbab and Nashpa-5A) in SPLY. Hence, the exploration cost in 9MFY21 witnessed a slide of 74% YoY, settling at PKR 3,617mn given two dry wells during the period versus seven dry wells in SPLY.

· Other income in 3QFY21 was recorded at PKR 1,046mn versus PKR 1,641mn in SPLY, descending by 36% YoY, which is attributable to fall in income from loans and bank deposits tagged with absence of gain on foreign currency accounts. With this, the other income during 9MFY21 came out to be PKR 2,905mn, declining by 29% YoY.

· The company booked effective taxation at 29% in 3QFY21 vis-à-vis 32% in 3QFY20.

Courtesy – AHL Research