PPL profit surges 30% to Rs59.5 billion

Rise comes due to robust sales, higher other income

KARACHI: Pakistan Petroleum Limited’s (PPL) consolidated profit increased 30% to Rs59.46 billion in the year ended June 30, 2019 on the back of robust sales as well as higher other income.

The company had booked a profit of Rs45.83 billion in the preceding year ended June 30, 2018, according to the profit or loss account of the oil and gas exploration firm available at the Pakistan Stock Exchange (PSX) on Wednesday.

Accordingly, earnings per share surged to Rs26.22 in the year under review compared to Rs20.21 in the previous year. The board of directors recommended a final cash dividend of Rs2 per share for both the ordinary shareholders as well as convertible preference shareholders.

In addition to that, it recommended one bonus share for every five ordinary shares and one bonus share for every 10 convertible preference shares held by the shareholders. The entitlement will be paid to the shareholders whose names appear in the register of members on October 17, 2019. PPL’s share price slightly fell Rs0.59, or 0.45%, to Rs129.56 with trading in 3.57 million shares at the PSX.

The company booked revenues from the sale of oil and gas deposits to its contract customers of Rs164.37 billion in FY19, which was 30% higher than Rs126.62 billion in the previous fiscal year.

“The increase in revenue is mainly due to 11% increase in average Arab Light crude oil price and average rupee devaluation of 19% (during the year under review),” Sherman Research said in post-result comments. Similarly, other income increased 67% to Rs15.68 billion in FY19 compared to Rs9.39 billion in the previous fiscal year. The increase came “due to exchange gains in foreign currency owing to rupee devaluation.” On the flip side, exploration expenses soared 134% to Rs27.21 billion compared to Rs11.64 billion in the previous fiscal year. “Exploration cost increased on account of increased exploration activity and dry wells,” the research house said.

Other charges surged 33% to Rs7.16 billion compared to Rs5.37 billion last year. Finance cost rose to Rs777.37 million compared to Rs470.64 million in the previous fiscal year.

Published in The Express Tribune, September 26^th, 2019.

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