We expect Pakistan Petroleum Limited (PPL) to post NPAT of PkR27.1bn (EPS: PkR9.99) for 3QFY24E, down 32%/17% QoQ/YoY. The decline in quarterly earnings is largely attributable to a higher NPAT base from the previous quarter, led by a one-off tax adjustment during that period.

With regards to hydrocarbon production, gas output is estimated to increase by 5%QoQ, reaching 558mmcfd, primarily driven by gains at Kandhkot (+36mmcfd QoQ) and Qadirpur (+21.2mmcfd QoQ) during the period. Additionally, the company incurred a dry well during the period as well, specifically Maraab X-1 in the Hala block during Feb’24, taking our total exploration expense estimate to PkR4.2bn during the period. Overall, the company is set to post its highest nine-month earnings, which is expected to clock in at PkR97bn (EPS: PkR35.64), up 19%YoY.

Courtesy – AKD Research