Corporate results: PPL records net profit of Rs13.6b

Production increases 23% during 1QFY15

KARACHI: Pakistan Petroleum Limited (PPL) announced a net profit of Rs13.6 billion for the first quarter of fiscal year 2014-15, 10% higher than the corresponding period previous year. 

Production increased 23% on a year-on-year (YoY) basis to 13.1 million barrels, while revenue increased 12% YoY to Rs30.9 billion in 1QFY15 as compared to Rs27.7 billion in 1QFY14.

As a result of the significant gas and condensate discoveries, the company had distributed a 125% cash dividend to its shareholders.

Global Research analyst said gas production depicted flattish growth of 3%, according to Pakistan Petroleum Information System.

According to the report, field expenditure declined 8% on a quarter-on-quarter (QoQ) basis to Rs8.7 billion in the first quarter of the current fiscal due to lower exploration expenditure. The YoY increase in field expenditures rose 29% to Rs8.7 billion due to higher amortisation and decommissioning costs.

Other income increased 44% QoQ (5% YoY) to Rs2.28 billion in 1QFY15. The analyst gave exchange gains as reason for the QoQ rise in other income, while YoY increase was owed to higher interest payments on circular debt.

“PPL is one of our top picks in the exploration and production sector as the stock trades at a forward price-earnings ratio of 7.7,” said the report.

Published in The Express Tribune, October 25^th, 2014.

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