PPL’s profit rises 18% to Rs16.9 billion

Increase comes on back of surge in other income, dip in finance cost


Our Correspondent October 26, 2021
Pakistan Petroleum Limited (PPL) has a huge investment stuck in Yemen due to poor law and order situation in the country. PHOTO: FILE

KARACHI:

Pakistan Petroleum Limited’s (PPL) profit increased 17.7% to Rs16.9 billion in the quarter ended September 30, 2021 owing to a massive surge in other income and a dip in finance cost.

According to a notice sent to the Pakistan Stock Exchange on Monday, the oil and gas exploration and production firm had reported a profit of Rs14.3 billion in the same quarter of last year.

Earnings per share of the company amounted to Rs6.2 in July-September 2021 compared to Rs5.26 in July-September 2020.

Net sales of the company rose from Rs39.3 billion in the July-September quarter of previous year to Rs43.6 billion in the same quarter of 2021, an increase of 11%.

Arif Habib Limited analyst Muhammad Iqbal Jawaid said that net sales in the first quarter of fiscal year 2021-22 rose due to 70% year-on-year surge in oil prices and 5% higher wellhead price of Sui gas field.

“Oil and gas production recorded a fall of 7% and 8% respectively in 1QFY22,” he stated in a report.

During the three months under review, the firm’s exploration expenses more than doubled to Rs4.9 billion against Rs2.3 billion in the same period of last year.

According to the analyst, one of the reasons behind the jump was the declaration of Khanot-01 as a dry well.

PPL’s administrative expenses rose 12% as they climbed from Rs786.2 million in July-September 2020 to Rs881.5 million in the corresponding quarter in 2021.

On the other hand, finance cost fell to Rs296 million during the quarter under review compared to Rs304.2 million in the corresponding period of previous year.

Other income skyrocketed 500% to Rs4.5 billion in July-September 2021. The company had reported receipts of Rs758.5 million under the same head in July-September 2020.

“Other income in 1QFY22 depicted a hefty jump of six times on the back of exchange gains on foreign currency,” Jawaid said.

Published in The Express Tribune, October 26th, 2021.

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