As per the latest financial result announcement, Pakistan Petroleum Limited (PPL) posted a profit after tax of PKR 97,937mn (EPS: PKR 35.99) during FY23 compared to PKR 53,546mn (EPS: PKR 19.68) in FY22, swelling up by 83% YoY. On a quarterly basis, the bottom-line arrived at PKR 16,103mn (EPS: PKR 5.92), depicting a massive growth of 13x YoY.

Result Highlights

· Topline during FY23 jumped up by 42% YoY, clocking-in at PKR 286,480mn given i) 16% YoY hike in Sui wellhead price, and ii) stable oil production while 2% YoY growth in gas production, and iii) a devaluation of the Pak Rupee against the greenback. On a quarterly basis, net sales ascended by 17% YoY, settling at PKR 72,305mn in 4QFY23 on account of i) PKR depreciation against USD, and iii) increase in Sui wellhead price (up by 14% YoY).

· Exploration costs reduced by 9% YoY, settling at PKR 21,628mn in FY23 compared to PKR 23,735mn in FY22 due to lower cost of dry wells during the year. Meanwhile, exploration cost in 4QFY23 declined by 38% YoY, settling at PKR 8,679mn owed to absence of dry wells (Khipro East X 01 and Pandran X-1 incurred in 4QFY22).

· Other income clocked-in at PKR 17,539mn in FY23 against PKR 14,144mn in SPLY, showcasing a growth of 24% YoY higher exchange gains during the period. In 4QFY23, other income settled at PKR 2,640mn, decreasing by 29% YoY.

· The company booked effective taxation at 56% in 4QFY23 vis-à-vis 94% in 4QFY22. The taxation during the quarter includes an additional 6% super tax levied on the profit before tax of FY23.

Courtesy – AHL Research