PPL: Profitability to arrive at PKR 9.25/share expected during 2QFY23

The management of Pakistan Petroleum Limited (PPL) is expected to announce it 1HFY23 on 27th Feb’23. We forecast the company to post a bottom line of PKR 51,792mn (EPS: PKR 19.03) in 1HFY23 in contrast to PKR 31,709mn (EPS: PKR 11.65) in 1HFY22, depicting a jump of 63% YoY.

The surge in profitability comes on the back of i) 19% YoY increase in Sui wellhead price, and ii) surge in oil prices by 27% YoY. Meanwhile in 2QFY23, earnings are anticipated to record a jump of 71% YoY, settling at PKR 25,179mn (EPS: PKR 9.25). Net sales during the quarter are expected to ascend by 46% YoY on account of i) growth in oil and gas production by 8% and 4% YoY, respectively, ii) 22% YoY PKR devaluation against USD, iii) jump of 13% YoY in oil prices, and iii) higher Sui wellhead price.

Furthermore, we expect the exploration expense to increase by 5% YoY in 2QFY23 to PKR 3,861mn given dry well well (Sui-43) incurred during the period under review. Alongside the result, we expect the company to announce an interim cash dividend of PKR 2.00/share (PKR 1.50/share in 2QFY22).

Courtesy – AHL Research

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