Corporate results: PPL posts 19% rise in first-half

Improved oil production cushions earnings.

KARACHI:

Pakistan Petroleum Limited (PPL) on Wednesday announced an 18.8% rise in net profits for the six-month period ending December 2013 on the back of higher oil production, better prices and depreciation of the rupee, analysts said.

It also announced an interim cash dividend of Rs5 per ordinary share and Rs3 on fully paid preference shares.

profit increased to Rs26.5 billion for the period, compared with Rs22.3 billion in the corresponding period last year, but it came at the cost of relatively lower field expenditure on finding new petroleum reserves.



The company’s revenues were up 15.4% to Rs58.5 billion despite a slight reduction in gas production, according to Global Research. “Revenues increased mainly due to rise in oil production and higher realised prices,” it said.

Citing data, it said PPL’s oil production was up by 6% in quarter-on-quarter basis to 12,357 barrels per day between October and December 2014.

This increase in production came from the company’s Nashpa-4 well, it said. “On a year-on-year basis, oil production for PPL has reportedly improved by 24% to 2.16 million barrels,” it said.

Gas production however, continues to decline due to falling flows from Sui, Kandhkot and Sawan as during the period under review it declined by 5% to 778 million cubic feet per day (mmcfd) compared to 823 mmcfd in first half of fiscal 2013, it said.

Field expenditure remained flat at Rs13.56 billion due to lower seismic activity and field operating expenses. It didn’t show improvement even on quarter-on-quarter basis. However, the Global Research’s note said it has been observed that PPL’s field expenditure goes up in the last quarter of every fiscal year.

Published in The Express Tribune, January 23^rd, 2014.

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