Pakistan Petroleum profits soar 33% to Rs32 billion

Sales blossom on better prices and increasing volumes.

KARACHI:

Pakistan Petroleum profits rose 33% to Rs32.27 billion in the period from July 2011 to March 2012 amid better performance across the board.

The growth arises from increasing price and volumes coupled with contribution from higher other operating income, said analysts. Higher Arab Light oil prices made the explorer’s assets more valuable and increased margins, added analysts.

Net sales expanded by 23% to Rs71.51 billion in the first nine months of fiscal 2012 backed by higher realised prices and increasing volumes.

Gas production has remained flat while oil production went up by 20% on a yearly basis on the back of 85% and 36% higher production from Nashpa and Adhi, respectively, during the third quarter.

In addition to higher oil production, realised price for gas has shot up by an estimated 22%, while oil is believed to have risen by 16% on a yearly basis.

Furthermore, the company’s other income grew by 66% to stand at Rs5.2 million as against Rs3.1 million in the same period last year. This is due to growing cash balances as the company has booked higher interest income on bank placements and T-bills investment

In the third quarter alone, profits swelled 57% posted an earnings per share of Rs9.25 from Rs5.8 in the same quarter last year.

In line with its payout history, PPL did not announce any cash dividends alongside its third quarter result.

The country’s second largest oil and gas explorer’s stock value rose Rs1.69 to close at Rs197.20 during trade at the Karachi Stock Exchange.

Published in The Express Tribune, April 26^th, 2012.