Pakistan Petroleum Limited (PPL) announced its financial result today, posting a net profit of PKR 114,309mn (EPS: PKR 42.01) during FY24, up by 17% YoY, which is primarily due to the reversal of tax provisions amid favourable judgement from the court-related to depletion allowance in 2QFY24. On a quarterly basis, the company’s earnings settled at PKR 17,898mn (EPS: PKR 6.58), up by 11% YoY. In addition to the result, the company announced a final cash dividend of PKR 2.50/share (PKR 6.00/share in FY24).

Result Highlights       

• Net sales in FY24 witnessed an uptick of 1% YoY, settling at PKR 288,797mn against PKR 286,480mn in SPLY because of Pak Rupee depreciation against the greenback by 12% YoY. Meanwhile, oil and gas production declined by 3% and 13% YoY, respectively. During 3QFY24, the topline plummeted by 11% YoY, arriving at PKR 64,137mn, owing to i) a fall in the wellhead price of Sui by 7% YoY and ii) a 10% YoY fall in gas production. The oil prices and production witnessed a 9% and 11% YoY, respectively.
• The exploration cost dwindled by 12% YoY to PKR 19,133mn in FY24. During 4QFY24, it settled at PKR 7,138mn, contracting by 18% YoY on account of the lower cost of the dry well during the quarter.
• Other income was PKR 16,977mn in FY24, dipping 3% year over year. In contrast, other income during 4QFY24 was PKR 5,440mn, jumping 2x year over year due to higher income from cash and cash balances.
• The company booked effective taxation at 37% in 4QFY24 vis-à-vis 56% in 4QFY23.

Courtesy – AHL Research