PPL profit soars 2.5 times as sales grow, cost falls

Earns Rs13.14 billion in the Jul-Sep 2017 quarter

Our Correspondent October 28, 2017

PHOTO: FILE

KARACHI: Pakistan Petroleum Limited’s (PPL) consolidated profit soared 2.5 times to Rs13.14 billion in the quarter ended September 2017 on the back of outstanding sales and a significant drop in exploration cost.

The company had registered a profit of Rs5.40 billion in the same quarter of previous year.

Earnings per share increased to Rs6.66 from Rs2.74. PPL’s share price rose 1.03%, or Rs1.83, to Rs180.36 with a volume of 1.01 million shares at the Pakistan Stock Exchange.

Net sales surged 71% to Rs32.31 billion in Jul-Sep 2017 from Rs18.92 billion in the corresponding quarter of preceding year.

Oil and gas exploration cost declined 193 times to Rs7.66 million from Rs1.14 billion.

With rise in Sui gas price, PPL profit more than doubles

Sherman Securities’ analyst Aftab Awan said the massive increase in earnings was a combined impact of higher Sui gas field pricing, retrospective impact of Tal block’s wellhead gas prices and impressive growth in oil and gas production.

“We believe the earnings per share…include a one-time earnings impact of Rs2.2 per share. This is due to the retrospective impact of Tal gas pricing and reversal in the exploration cost,” he said.

Company’s sales grew due to the revision in Sui and Tal gas pricing, improved oil prices (up 14% year-on-year) and increased hydrocarbon production (oil production was up 15% while gas production rose 5%), he said.

Dividend for last year

A PPL statement said it held the 66th annual general meeting on Friday where members approved financial statements for the fiscal year ended June 30, 2017 together with final cash dividend at Rs6 per share.

PPL acquired UK company at double the market value

MD and CEO Syed Wamiq Bokhari said PPL earned a profit of Rs36 billion last year, which was more than double the profit earned in the prior year.

He pointed out that a record 43 wells were drilled in the operated and partner-operated assets while deploying the highest-ever 13 rigs with a remarkable reduction in the drilling time and cost.

Bokhari highlighted PPL’s efforts to enhance production, which crossed one billion cubic feet per day in 2016-17, leading to 8% growth over previous year, besides 108% reserves replacement.

Published in The Express Tribune, October 28^th, 2017.

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