Pakistan Petroleum Limited, which is one of the top players in the oil and gas exploration and production sector, announced its financial results for the half-year, ending on December 31st, 2019.
The consolidated profit after tax of Pakistan Petroleum Limited (PPL) went down by 19.25% to Rs. 24.44 billion as compared to Rs. 30.26 billion in the same period last year. The company’s earning per share decreased to Rs. 8.98 in the period under review against Rs. 11.12.
PPL’s revenue increased by 8.32% to Rs. 85.63 billion as compared with Rs. 79.05 billion recorded last year. The increase in revenue was due to the higher exchange rate and improving oil prices. The exploration expenses witnessed a massive surge of 74% year-on-year to Rs. 14.26 billion compared to Rs. 8.18 billion.
According to Foundation Securities, the decline in profits were due to reduced oil and gas production, lower Arab light prices and higher exploration expense.
“Oil and gas production witnessed 2% and 13% year-on-year decline, respectively, tagged with a 6% year-on-year drop in oil prices,” stated an AHL Research report.
According to the analysts, the profits were down because of higher-than-expected exploration expenses.
PPL’s other income went down to nearly 60% to Rs. 2.55 billion due to the absence of exchange gains on the foreign currency account as compared to Rs. 6.34 billion recorded last year. The finance cost of the company saw an increase of 93% to Rs. 540.53 million as compared to Rs. 280.5 million in the previous year.