PPL's profit falls over 22% in FY25

September 19, 2025 (MLN): Pakistan Petroleum Limited (PSX: PPL) has reported a significant decline in its profitability for the fiscal year ended June 30, 2025, with its profit after taxation falling by over 22% compared to the previous year.

The drop in earnings was primarily driven by a sharp reduction in revenue and an increase in finance costs.

The company has given a cash dividend of Rs2.5 per share.

According to the company's consolidated statement of profit or loss, profit after taxation for FY25 stood at Rs89.95bn, a notable decrease from Rs115.48bn recorded in FY2024.

This represents a 22.11% YoY reduction. The company's basic and diluted earnings per share also mirrored this trend, falling to Rs33.06 from Rs42.44, marking a 22.1% decline.

The top-line performance was a major contributing factor to the lower profitability. Revenue from contracts with customers dropped by 15.89% to Rs244.98bn from Rs291.2bn in the prior fiscal year.

This revenue decline, coupled with a 19.63% drop in gross profit, set a challenging tone for the company's financial year.

While operating expenses saw a marginal decrease of 2.13%, other costs climbed. Finance costs, in particular, saw a substantial increase of 50.64%, rising to Rs2.48bn from Rs1.65bn.

Administrative expenses also increased by 27.95%. Despite these headwinds, the company’s ‘other income’ provided some relief, showing a strong increase of 37.99% to Rs24.19bn.

The results highlight a difficult operating environment for the company during the fiscal year, with taxation also rising 4.7%. The decline in revenue and the rise in key expenses have put pressure on PPL's financial health, impacting both its bottom line and shareholder returns.

Copyright Mettis Link News