As per latest financial result announcement, Pakistan Petroleum Limited (PPL) posted a profit after tax of PKR 11,886mn (EPS: PKR 4.37) during 2QFY21 in contrast to PKR 10,317mn (EPS: PKR 3.79) in 2QFY20, up by 15% YoY. Similarly, bottom-line in 1HFY21 clocked-in at PKR 26,237mn (EPS: PKR 9.64), climbing up by 7% YoY. Alongside the result, the company announced an interim cash dividend of PKR 1.50/share.

 Result Highlights

Net Sales during 2QFY21 dipped by 17% YoY, arriving at PKR 36,313mn compared to PKR 43,651mn in SPLY given i) drop in oil and gas production by 2% and 1% YoY, respectively, and ii) slide in oil prices by 33% YoY. On a cumulative basis, topline declined by 12% YoY, settling at PKR 75,539mn in 1HFY21 on the back of i) drop in Sui wellhead price by 8% YoY, ii) 1% YoY drop in gas production and iii) 32% YoY fall in oil prices. Meanwhile, oil production remained stable in 1HFY21. 

The exploration costs comes out to be PKR 873 in 2QFY21, depicting a plunge of 90% YoY, amid absence of dry wells during the quarter against two dry wells (Noah X-1 and Talagang X-1) in SPLY. With this, the exploration cost in 1HFY21 witnessed a decline of 73% YoY, settling at PKR 3,147mn given one dry well during the period versus five dry wells in SPLY.

Other income in 2QFY21 arrived at PKR 1,111mn against PKR 1,585mn in SPLY, tumbling by 30% YoY, which is attributable to fall in income from loans and bank deposits owing to lower interest rates. Hence, the other income during 1HFY21 settled at PKR 1,859mn, portraying a decline of 25% YoY.

The company booked effective taxation at 23% in 2QFY21 vis-à-vis 25% in 2QFY20.

 Courtesy – AHL Research