Pakistan Petroleum Limited (PPL) announced its financial results today. It posted a profit after tax of PKR 23,577mn (EPS: PKR 8.67) during 1QFY25 compared to PKR 29,626mn (EPS: PKR 10.89) in 1QFY24, down 20% YoY. Meanwhile, the net profit on a QoQ basis was augmented by 32%. In addition to the result, the company surprisingly announced an interim cash dividend of PKR 2.00/share in 1QFY25, marking a 1Q dividend after 16 years.

Result Highlights       

• Topline in 1QFY25 depicted a decline of 15% YoY, arrive at PKR 66,177mn compared to PKR 77,448mn during SPLY amid i) contraction in oil and gas production by 11% and 7% YoY, respectively, ii) 10% YoY decline in oil prices, and iii) strengthening of Pak Rupee against greenback by 5% YoY. On a sequential basis, the net sales witnessed a 3% QoQ growth given 3% QoQ growth in gas production. Meanwhile, the oil prices witnessed a dip of 7% QoQ.   
• The exploration costs showcased a decline of 24% YoY | 79% QoQ in 1QFY25, arriving at PKR 1,519mn owing to lower cost of dry well Rizq-5 compared to dry well Nashpa X-5 and Bolan West incurred in 1QFY24 and 4QFY24, respectively.
• The other income reported a jump of 70% YoY | 18% QoQ, settling at PKR 6,394mn during 1QFY25 owing to higher income from cash and cash balances.
• The company’s effective taxation arrived at 39% in 1QFY25 vis-à-vis 38% in 1QFY24

Courtesy – AHL Research