Pakistan Petroleum profit soars 49 per cent

Net profit of Pakistan Petroleum Limited rises 49 per cent to Rs7.79 billion during first quarter of this fiscal year.

KARACHI: The net profit of Pakistan Petroleum Limited (PPL) rose 49 per cent to Rs7.79 billion during the first quarter (July-September) of this fiscal year on the back of higher production and increase in wellhead gas prices.

The company’s net sales went up 50 per cent to Rs18.2 billion during the quarter compared with Rs12.2 billion in the same period last year, according to a communiqué sent to the Karachi Stock Exchange on Tuesday.

Expectations were divided on PPL’s results as some analysts expected the profit to be around Rs7 billion while others estimated it to be in the vicinity of Rs8 billion.

The company reported a surprise 67 per cent jump in other operating income owing to a higher liquid balance of Rs29 billion as of June 30, said IGI Securities analyst Umair Siddique. Other operating income was recorded at Rs950 million against last year’s Rs570 million.

Production

The major thrust in profit was contributed by initiation of production flows from the Nashpa and Hala fields as well as incremental flows from Manzalai and Makori fields, said the analyst.

The company’s average oil production during the period soared to 6,000 barrels per day, marking another 50 per cent increase on a yearly basis. Meanwhile, gas production also went up four per cent to 950 million cubic feet per day (mmcfd).

Wellhead gas prices still on the driving seat

Wellhead gas prices for PPL’s two major fields, Sui and Kandhkot, have surged 31 per cent on a yearly basis.

The cumulative contribution of the key fields accounts for more than 73 per cent of the company’s gas revenues.

Published in The Express Tribune, October 20^th, 2010.