Pakistan Petroleum Limited (PPL) is scheduled to announce its 9MFY21’s financial result on 29th Apr’21, where we expect the company’s profitability to settle at PKR 39,486mn (EPS: PKR 14.51), up by 1% YoY. The revenue in 9MFY21 is anticipated to decline by 9% YoY owing to i) decrease in oil and gas production by 1% and 3% YoY, respectively, and iii) 19% YoY decline in oil prices.

On quarterly basis, earnings are expected to witness a fall of 10% YoY, settling at PKR 13,249mn (EPS: PKR 4.87) owed to i) drop in gas production by 1% YoY and ii) 13% YoY decline in wellhead price of Sui. Whereas, oil production witnessed an uptick of 2% YoY in 3QFY21.

Meanwhile, the exploration expense is expected to tumble by 28% YoY in 3QFY21, clocking-in at PKR 1,458mn given one dry well (Qadirpur Deep X-01) reported during the quarter against two dry wells (Zarbab and Nashpa-5A) incurred in SPLY.

Courtesy – AHL Research