Pakistan Petroleum Limited (PPL) is scheduled to announce its 1QFY24’s financial result on 30th Oct’23, where we anticipate the company’s profitability to clock-in at PKR 28,418mn (EPS: PKR 10.44) during the quarter compared to PKR 26,614mn (EPS: PKR 9.78) in 1QFY23, up by 7% YoY.

The growth in earnings during 1QFY24 is anticipated on account of i) 4% YoY increase in Sui wellhead price, ii) 23% YoY depreciation of Pak Rupee against greenback. Meanwhile, oil and gas production witnessed a drop of 4.9% and 5.1% YoY, respectively.

Furthermore, we expect the exploration expense to come down by 43% YoY in 1QFY24 to PKR 842mn amid absence of dry well during the quarter. On a sequential basis, the net profit depicted a surge 76% QoQ, which is owed to i) 18% and 3% QoQ growth in oil and gas production, respectively, ii) appreciation of USD against PKR, and iii) higher other exploration expense charged during 4QFY23.

Courtesy- AHL Research