Pakistan Petroleum Limited (PPL) announces Q3 financial results

Insight Research has just released an update on Pakistan Petroleum Limited’s (PPL PA) recent quarterly results. Here are the important points from the earnings announcement:

Decline in Profitability

• Pakistan Petroleum Limited (PPL PA) announced its 3QFY24 result, posting a Profit After Tax (PAT) of PKR27.6 billion with Earnings Per Share (EPS) at PKR10.2. This is a decrease of 16% Year-over-Year (YoY) from the previous year’s PAT of PKR32.9 billion (EPS: PKR12.1).

Revenue Trends

• Revenue for the quarter decreased by 2% YoY, primarily due to lower hydrocarbon production. However, on a sequential basis, revenue increased by 4% Quarter-over-Quarter (QoQ) driven by higher gas production and elevated well head prices.

Operating Expenses

• Operating expenses increased by 3% YoY, amounting to PKR13.0 billion during the quarter.

Exploration Expenses

• Exploration expenses decreased significantly by 14% YoY and 48% QoQ, totaling approximately PKR3.4 billion in 3QFY24. This decline may be attributed to reduced exploration activity. Notably, the company recorded a dry well expense of PKR3.3 billion in the previous quarter (2QFY24).

Other Income

• Other income witnessed a substantial decline of 54% YoY, amounting to approximately PKR3.8 billion in 3QFY24. This decrease is attributed to the absence of a significant exchange gain recorded in the same quarter of the previous fiscal year.

Taxation

• The effective tax rate for the quarter stood at 37.6%, compared to 34.8% in the same period last year.

Dividend Announcement

• Alongside the financial results, Pakistan Petroleum Limited (PPL PA) announced a cash dividend of PKR1.0 per share in 3QFY24, bringing the total dividend for 9MFY24 to PKR3.5 per share.

Metric	3QFY24	3QFY23	2QFY24	YoY	QoQ	9MFY24	9MFY23	YoY
Net Sales	74,906	76,518	72,307	-2%	4%	224,660	214,175	5%
Operating Expenses	12,953	12,584	12,329	3%	5%	37,777	36,074	5%
Royalties & Other Levies	10,943	11,882	11,064	-8%	-1%	34,299	34,749	-1%
Gross Profit	51,010	52,053	48,915	-2%	4%	152,585	143,352	6%
Exploration Expenses	3,406	3,942	6,590	-14%	-48%	11,995	12,949	-7%
Admin Expenses	1,164	996	963	17%	21%	3,333	2,786	20%
Finance Costs	366	348	407	5%	-10%	1,184	1,052	13%
Other Charges	5,028	4,426	4,962	14%	1%	14,230	12,469	14%
Other Income	3,806	8,235	3,978	-54%	-4%	11,538	14,898	-23%
Profit Before Taxation	44,254	50,486	39,584	-12%	12%	131,558	128,769	2%
Taxation	16,620	17,588	433	-6%	3736%	35,147	46,934	-25%
Profit After Taxation	27,634	32,898	39,150	-16%	-29%	96,411	81,835	18%
EPS	10.16	12.09	14.39	–	–	35.43	30.08	–
DPS	1.00	–	2.50	–	–	3.50	1.00	–

Disclaimer:

The information in this article is based on research by Insight Research. All efforts have been made to ensure the data represented in this article is as per the research report. This report should not be considered investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.