PPL posts Rs14.71 billion profit in second quarter FY22

KARACHI: The unconsolidated profit after tax of Pakistan Petroleum Limited (PPL) showed a growth of 24 per cent to Rs14.71 billion translating into the earnings per share (EPS) Rs5.41 during the quarter ended December 31, 2021.

The company posted a profit of Rs11.88 billion (EPS: Rs4.37) during the same period last year.

During the first half of fiscal year 2022, the bottom-line of the company witnessed an increase of 21 per cent to clock-in at Rs31.70 billion (EPS: Rs11.65).

In addition to the result, the company announced an interim cash dividend of Rs1.50/share.

The net sales during the quarter showed an increase of 28 per cent, arriving at Rs46.37 billion against Rs36.31 billion during the same period last year, on the back of a hefty jump in oil prices by 83 per cent year-on-year, hike in Sui wellhead price by 5 per cent, and rupee depreciation against the greenback by 8 per cent year-on-year.

However, oil and gas production declined 6 per cent and 7 per cent on a year-on-year basis, respectively.

On a cumulative basis, the topline jumped up by 19 per cent on a year-on-year basis, settling at Rs89.52 billion in the first half of fiscal year 2022 due to 77 per cent higher oil prices, and increase in Sui wellhead price.

The exploration costs surged by 4x on a year-on-year basis, reaching Rs3.67 billion, compared with Rs873 million given dry well (Qasar X-01) incurred during the quarter.

With this, the exploration cost during the first half of fiscal year 2022 swelled up by 3x year-on-year, clocking at Rs8.39 billion owed to two dry wells during the period against one dry well during the same period last year.

Other income witnessed a massive increase of 146 per cent to settle at Rs2.73 billion, compared with Rs1.11 billion during the same period last year, which is attributable to exchange gain on foreign currency. Hence, other income during the first half came out to be Rs7.27 billion, up by 4x year-on-year due to aforementioned reasons.

The company recorded a share of loss of associate of Rs2.37 billion during the second quarter of fiscal year 2022 given 3D seismic activity undertaken by Pakistan International Oil Limited (PIOL) during the quarter.

The company booked effective taxation at 33 per cent during the second quarter of fiscal year 2022, compared with 23 per cent during the same period last year.