Pakistan Petroleum reports 28% profit dip as costs rise

February 28, 2025 (MLN): Pakistan Petroleum Limited’s (PSX: PPL) half-year profit declined by 28.42% year-on-year as revenue dropped while costs surged.

The Board of Directors approved an interim cash dividend of Rs2.00 per share (20%) on Ordinary Shares and Rs1.00 per share (10%) on Convertible Preference Shares for the quarter ended December 31, 2024.

This is in addition to the interim cash dividend of Rs2.00 per share (20%) on both Ordinary and Convertible Preference Shares already paid during the year.

The company reported a net profit of Rs49.95bn [EPS: Rs18.36] for the half-year ended December 31, 2024, compared to Rs69.79bn [EPS: Rs25.65] in the same period last year (SPLY).

Revenue from contracts with customers contracted by 15.19% to Rs128.08bn from Rs151.02bn in SPLY.

The cost of sales, including operating expenses and royalties & other levies, declined 3.22% to Rs47.55bn, but gross profit still shrank 20.96% to Rs80.53bn due to lower revenue.

Gross margins fell significantly. Administrative expenses surged 33.50% to Rs3.32bn, while finance costs more than doubled, rising 113.13% to Rs1.23bn due to higher interest rates.

Other charges also increased by 32.30% to Rs6.91bn.

However, other income jumped 97.70% to Rs15.18bn, helping offset some losses.

Profit before taxation declined by 24.40% to Rs74.87bn, while taxation expenses surged 39% to Rs24.92bn.

This led to a 28.42% drop in net profit.

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