Pakistan Petroleum Limited (PPL) is scheduled to announce its 1QFY23’s financial result on 27th Oct’22, where we anticipate the company’s profitability to clock-in at PKR 4,490mn (EPS: PKR 8.53) during the quarter compared to PKR 16,991mn (EPS: PKR 6.24) in 1QFY22, up by 37% YoY. The growth in earnings during 1QFY23 is anticipated on account of i) 19% YoY increase in Sui wellhead price, ii) 43% YoY jump in oil prices, and iii) 19% YoY growth in gas production.

Meanwhile, oil production witnessed a drop of 2% YoY. Furthermore, we expect the exploration expense to come down by 31% YoY in 1QFY23 to PKR 3,240mn amid lower cost of dry well Bazil X-01 at Hala Block compared to dry well Naushahro Firoz X-1 in 1QFY22. On a sequential basis, a massive 19x QoQ jump in net profit is expected to be witnessed given i) 10% super tax charged in 4QFY22 on PBT of FY22, ii) 10% QoQ increase in Sui wellhead price, iii) 6% and 9% QoQ growth in oil and gas production, respectively.

Courtesy – AHL Research