Pakistan Petroleum’s profit increases 74% to Rs20.62b

Rupee depreciation, surge in crude oil, gas prices aided the rise in earnings of firm

KARACHI:

Pakistan Petroleum Limited’s (PPL) net profit increased 74% to Rs20.62 billion in the third quarter ended March 31, 2022 in the wake of rupee depreciation and surge in petroleum crude oil and gas prices in the country.

The oil and gas exploration firm booked a profit of Rs11.88 billion in the same quarter of the previous year, the company said in a notice sent to Pakistan Stock Exchange (PSX) on Wednesday.

Its earnings per share increased to Rs7.58 in the quarter under review compared to Rs4.37 in the corresponding quarter of the previous year.

PPL’s share price inched up Rs0.01 to close at Rs75.10 with 1.36 million shares turnover at PSX.

Cumulatively in the first nine-month (Jul-Mar) of the current fiscal year 2022, its profit rose 37% to Rs52.33 billion compared to Rs38.12 billion in the same period last year. Accordingly, the earnings per share increased to Rs19.23 from Rs14.01 in the corresponding period of last year.

The company’s net sales surged 39% to Rs50.90 billion in the third quarter compared to Rs36.69 billion in the same period of the previous year amid “11% year-on-year Pakistani rupee devaluation against the US dollar, massive surge of 66% in oil prices, and increase in Sui wellhead price by 29%,” AHL analyst Muhammad Iqbal Jawaid said in a post-result commentary.

Meanwhile, oil and gas production declined by 14% and 4% year-on-year, respectively, he said.

On a cumulative basis, net sales ascended by 25% to Rs140.43 billion in nine-month compared to Rs112.23 billion in the same period of last year.

Exploration costs augmented three-time to Rs1.43 billion in the quarter compared to Rs470 million “owed to higher seismic data acquisition during the quarter”.

Hence, the exploration cost in nine-month swelled 2.7-times to Rs9.83 billion given two wells were found dry during the period versus one dry well in the same period last year.

Published in The Express Tribune, April 28^th, 2022.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.