As per latest financial result announcement, Pakistan Petroleum Limited (PPL) posted a profit after tax of PKR 81,835mn (EPS: PKR 30.08) during 9MFY23 versus PKR 52,329mn (EPS: PKR 19.23) in 9MFY22, climbing up by 56% YoY. Whereas, the bottom-line during 3QFY23 arrived at PKR 32,898mn (EPS: PKR 12.09), witnessing a surge of 60% YoY.

Result Highlights

· Topline during 9MFY23 ascended by 53% YoY, clocking-in at PKR 214,175mn given i) jump in Sui wellhead price by 16% YoY, ii) increase in oil prices by 10% YoY, and iii) Pak Rupee depreciation against USD by 27% YoY. On a quarterly basis, net sales surged by 50% YoY, settling at PKR 76,518mn in 3QFY23 on account of i) 32% YoY PKR depreciation against USD, ii) higher Sui wellhead price (up by 14% YoY), and iii) 8% and 2% YoY growth in oil and gas production, respectively.

· Exploration costs augmented by 32% YoY to reach PKR 12,949mn in 9MFY23 compared to PKR 9,826mn in 9MFY22 due to surge in cost of dry wells during the year. Meanwhile, exploration cost in 3QFY23 jumping up by 176% YoY, settling at PKR 3,942mn owed to higher in 2D and 3D seismic activity during the quarter.

· Other income clocked-in at PKR 14,898mn in 9MFY23 against PKR 10,404mn in SPLY, depicting a growth of 43% YoY. In 3QFY23, other income settled at PKR 8,235mn, swelled up by 163% YoY amid hefty exchange gain of ~PKR 4.2bn.

· The company booked effective taxation at 35% in 3QFY23 vis-à-vis 33% in 3QFY22.

Courtesy – AHL Research