Pakistan Petroleum first-quarter profit falls 20%, surprises with dividend payout

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MG News | October 29, 2024 at 11:50 AM GMT+05:00

October 29, 2024 (MLN): Pakistan Petroleum Limited's (PSX: PPL) first-quarter profit fell 20.4% from last year as its revenue contracted while cost of sales rose.

One of Pakistan's largest E&P earned a net profit of Rs23.58 billion [EPS: Rs8.67] during the quarter ending September 2024 as against Rs29.63bn [EPS: Rs10.89] in the same period last year (SPLY).

The company surprised with an interim cash dividend of Rs2 per share (20%) on ordinary shares and Rs2 per share (20%) on convertible preference shares.

Its revenue contracted by 14.6% to Rs66.18bn as compared to Rs77.45bn in SPLY.

Furthermore, the cost of sales, which includes royalties & other levies and operating expenses, rose 2.4%, worsening the gross profit by 22.5% to Rs40.79bn in Q1 FY25.

The gross margins fell to 61.6% as compared to 68.0% in SPLY.

During the period under review, other income rose 70.3% to stand at Rs6.39bn in Q1 FY25 as compared to Rs3.75bn in SPLY.

On the expense side, the company's administrative expenses rose 36.4% from a year ago to Rs1.64bn, selling and distribution expenses fell 24.0% to Rs1.52bn, and other operating expenses fell 3.3% to Rs4.1bn.

The company’s finance cost increased by 36.3% and stood at Rs561.31m as compared to Rs411.81m in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a lower tax worth Rs15.17bn against an expense paid worth Rs18.09bn in the corresponding period of last year, a fall of 16.2%.

This translates to an effective tax rate of 39.1% as compared to 37.9% in SPLY.

Unconsolidated (un-audited) Financial Results for quarter ended September 30, 2024 (Rupees in '000)
  Sep 24 Sep 23 % Change
Sales 66,177,041 77,447,699 -14.55%
Cost of sales (25,386,804) (24,787,234) 2.42%
Gross Profit/ (loss) 40,790,237 52,660,465 -22.54%
Administrative Expenses (1,643,614) (1,205,132) 36.38%
Selling And Distribution Expenses (1,519,114) (1,999,434) -24.02%
Share Of Profit / (Loss) (617,668) (837,349) -26.24%
Other Income 6,394,021 3,753,625 70.34%
Other Operating Expenses (4,099,240) (4,240,633) -3.33%
Finance Cost (561,309) (411,810) 36.30%
Profit/ (loss) before taxation 38,743,313 47,719,732 -18.81%
Taxation (15,165,937) (18,093,374) -16.18%
Net profit/ (loss) for the period 23,577,376 29,626,358 -20.42%
Basic earnings/ (loss) per share 8.67 10.89 -

Amount in thousand except for EPS

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