PPL announces unscheduled meeting

Oil explorer expected to declare early cash dividend.


Express June 17, 2011

KARACHI:


Pakistan Petroleum, the country’s second largest oil and gas explorer, is scheduled to hold an unscheduled board meeting on June 21 to consider an early cash dividend, according to a notice sent to the Karachi Stock Exchange on Thursday.


This has happened in the past, June 2008, when it announced an early cash dividend of Rs10.5 per share mainly to support the government’s fiscal needs, says a JS Global Capital research note. The government holds a majority share in the company and at least 50% of the total dividend will go to the government.

Pakistan Petroleum has Rs32.4 billion as cash and short term investments, based on the three quarters of fiscal 2011 accounts, while an additional cash flow generation of Rs10 billion is expected in the fourth quarter, says the note. Hence, the upcoming meeting could announce a cash dividend in the vicinity of Rs7 to 8 per share, adds the note.

The company’s stock, the fourth most traded share at the stock exchange, jumped 2.9% to close at Rs217.67 on Thursday.

Moreover, a possibility of 10 to 20 per cent bonus issue also can not be ruled out along with full year results announcement.

The company’s profits are expected to jump in fiscal 2012 from the upcoming wellhead price revision in the vicinity of 15-17 per cent and new production from Tal and Naspha blocks.

Published in The Express Tribune, June 17th, 2011.

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