Pakistan Petroleum Limited (PPL) reported its 1QFY24 earnings earlier today, wherein the company posted Profit After Tax (PAT) of PkR29.62bn (EPS: PkR10.89) for the quarter, higher by 87%/13% on a QoQ/YoY basis—slightly above our estimate of PkR10.25/sh.

· The company’s posted its highest ever quarterly topline, clocking in at PkR77.45bn (up 6%/6% QoQ/YoY). The said incline on a quarterly basis is largely due to the absence of retrospective super tax during the period, alongside slight uptick in US$/PkR parity (up 2.1%QoQ) coupled with higher crude prices (up 12%QoQ).

· Significant accretion in the bottom was also majorly due to higher other income, which amounted to PkR3.75bn (up 57%QoQ), largely emanating from both local and FX short-term investments totaling to PkR67.6bn (as per latest financials).

· Company’s operating expenses remained relatively flat on a QoQ basis, ending at PkR12.29bn (vs. PkR11.9bn last quarter), up 3%QoQ.

· Exploration expenses clocked in at PkR2.0 during the quarter (down 5%QoQ), majorly due to no significant dry wells during the quarter. Finally, effective taxes for the period clocked in at 38% (vs. 57%/42% during 4QFY23/SPLY)

Courtesy – AKD Research