The oil and gas exploration & production sector reported a handsome profit of Rs. 100.8 billion in the first quarter of the financial year 2022-23 mainly due to higher oil prices linked to the international market.
According to a research report, the E&P sector earned revenues of Rs. 226.6 billion for the quarter, higher by 54 percent year-on-year (YoY) and 13 percent quarter-on-quarter (QoQ), despite a drop in Oil/Gas production of 10 percent /2 percent YoY, respectively, with a weak topline growth.
Exploration expenses in the final quarter of last year stood at Rs. 26.6 billion, with the giant’s share dropping in PPL’s lap, with the company reporting Rs. 11 billion in dry goods costs. In 1QFY23, the exploration expenses in the sector stood at Rs. 9.2 billion, lower by 65 percent QoQ, due to the absence of any substantial dry wells.
The trade debts of Oil and Gas Development Company and Pakistan Petroleum Limited stood at Rs. 491 billion and Rs. 401 billion at the end of the quarter, respectively, increasing by Rs. 34 billion and Rs. 35 billion from the earlier quarter.
The E&P sector provides investors with an exchange rate hedge, with the prospects of the sector having been muddied by mounting trade debts for the larger companies.
