Earnings declined by 16% YoY to PKR 10.16/share in 3QFY24

Pakistan Petroleum Limited (PPL) announced its financial result today, posting a net profit of PKR 96,411mn (EPS: PKR 35.43) during 9MFY24, up by 18% YoY amid reversal of tax provisions due to favourable judgement from the court, related to depletion allowance in 2QFY24. On a quarterly basis, the company’s earnings settled at PKR 27,634mn (EPS: PKR 10.16), down by 16% YoY. In addition to the result, the company announced a cash dividend of PKR 1.00/share (PKR 3.50/share in 9MFY24).

Result Highlights       

Net sales in 9MFY24 increased by 5% YoY, settling at PKR 224,660mn against PKR 214,175mn in SPLY because of the Pak Rupee depreciation against the greenback by 17% YoY. During 3QFY24, the topline reduced by 2% YoY, arriving at PKR 74,906mn, owing to i) a 6% and 5% YoY fall in oil and gas production, respectively, and ii) a dip in Sui wellhead price by 7% YoY.

The exploration cost declined by 7% YoY to PKR 11,995mn in 9MFY24. During 3QFY24, it settled at PKR 3,406mn, plummeting by 14% YoY on account of the lower cost of the dry well (Maraab X-1) incurred during the quarter.

Other income clocked in at PKR 11,538mn in 9MFY24, showcasing a decline of 23% YoY. Meanwhile, other income during 3QFY24 arrived at PKR at 3,806mn, witnessing a plunge of 54% YoY due to the absence of exchange gains during the quarter.

The company booked effective taxation at 38% in 3QFY24 vis-à-vis 35% in 3QFY23.

Courtesy – AHL Research