Pakistan Petroleum Profit Grows by 41% in First Half of FY24

Pakistan Petroleum Limited (PPL) has announced a profit after tax of Rs. 68.7 billion during 1HFY24 compared to Rs. 48.9 billion in 1HFY23, climbing up by 41 percent YoY.

During 2QFY24, the company posted its highest-ever quarterly earnings of Rs. 39.1 billion, depicting a significant jump of 75 percent YoY.

In addition to the result, the company announced an interim cash dividend of Rs. 2.50/share in 2QFY24.

Topline during 1HFY24 witnessed a growth of 9 percent YoY, settling at Rs. 149.7 billion on the back of a devaluation of the Pak Rupee against the greenback, according to Arif Habib Limited. Meanwhile, the Sui wellhead price declined by 5 percent YoY while oil and gas production reduced by 3 percent and 14 percent YoY, respectively.

On a quarterly basis, net sales ascended by 11 percent YoY, clocking in at Rs. 72.3 billion in 2QFY24 which is attributable to a 2 percent YoY uptick in oil production, and 21 percent YoY PKR depreciation against USD.

Exploration costs reduced by 5 percent YoY, settling at Rs. 8.58 billion in 1HFY24. Meanwhile, exploration cost in 2QFY24 plummeted by 12 percent YoY, settling at Rs. 6.59 billion given one dry well (Murad X-1) incurred during the quarter compared to two dry wells (Hatim X-1 and Faiz X-1) in SPLY.

Other income clocked in at Rs. 7.7 billion in 1HFY24, showcasing a growth of 16 percent YoY owing to higher income from cash and cash balances during the period. In 2QFY24, other income settled at Rs. 3.9 billion, up by 119 percent YoY due to the aforementioned reason.

The company booked effective taxation at 1 percent in 2QFY24 vis-Ă -vis 31 percent in 2QFY23. During 2QFY24, the company secured a favorable verdict from the court related to the depletion of the wellhead allowance. Hence, the company booked a hefty tax reversal in 2QFY24.

The earnings per share of the company clocked in at Rs. 25.28 in 1HFY24 and Rs. 14.39 in 2QFY24.



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