Pakistan Petroleum Limited (PPL) reported 4QFY25 financial results earlier today, with consolidated earnings clocking in at PkR18.1bn for the final quarter (EPS: PkR6.65), up 1%YoY — slightly below expectations.  Alongside the earnings, the company also announced a final cash dividend of PkR2.5/sh, taking FY25 cash payout to PkR7.5/sh  (payout ratio: 23%), compared to PkR6.0/sh in FY24:

·        Net Sales stood at PkR52.4bn during 4QFY25, down 19%YoY, largely led by reduced hydrocarbon production alongside lower average oil prices (Arab light: US$69/bbl during 4Q, down 22%YoY).

·        Regarding hydrocarbon production, PPL’s estimated oil and gas output fell by 11%/19% YoY during 4QFY25, reaching 9.5k bpd of oil and 423mmcfd of gas, respectively.

·        Operating expenses for the quarter amounted PkR13.5bn, marking a 22%YoY decline. Additionally, exploration expenses totaled PkR5.7bn for 4QFY25 (up 24%YoY), as the company was involved in the drilling of Lal X-1 in Kandhkot alongside 2D seismic activity in Khuzdar E.L.

·        Other income clocked in at PkR4.7bn, down 16%YoY. The decline is possibly due to lower investment yields alongside reduced cash and short-term investment balances during the outgoing quarter (PkR85bn during 4QFY25, down 27%YoY), as the company chose to retire outstanding working capital liabilities during the period (trade payables: PkR82bn during 4QFY25, down 37%YoY).

https://research.akdsl.com/638938922401180803.pdf

Courtesy – AKD Research