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PPL declares 25% dividend as profit grows to Rs69.79bn in 1HFY24

PPL declares 25% dividend as profit grows to Rs69.79bn in 1HFY24
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February 26, 2024 (MLN): Pakistan Petroleum Limited (PSX: PPL) has recorded a robust growth of 43.9% YoY in its earnings in the first half of fiscal year 2024 as the company earned Rs69.79bn [EPS: Rs25.65], in comparison to a profit of Rs48.5bn [EPS: Rs17.82] incurred in the Same Period Last Year (SPLY).

Considering the company's achievement of profit growth, the directors of PPL have approved an interim cash dividend for the year ending June 30, 2024 of Rs2.50 per share (25%) on ordinary shares and Rs. 2.50 per share (25%) on convertible preference shares.

The dividend will be distributed to those members whose names appear in the register of members of the company as at the close of business on 6 th March 2024.

Going by the results, the PPL's revenue from contracts with customers grew 9.28% YoY to Rs151.02bn as compared to Rs138.2bn in SPLY.

The operating charges along with royalties and other levies totaled Rs49.14bn in 1HFY24, 4.89% YoY higher than the amount recorded in 1HFY23.

As the growth in sales was greater than proportionate to the rise in cost to sell, the gross profit of the company improved by 11.53% YoY to Rs101.88bn in 1HFY24.

It is pertinent to highlight here that the gross margin of the company improved to 67.46% as compared to 66.10% in SPLY.

On the expense side, the company observed a decrease in exploration expenses by 8.32% YoY to clock in at Rs8.74bn during the review period.

On the other hand, PPL's Administrative expenses and other expenses rose to Rs2.24bn and Rs8.75bn in 1HFY24.

The company's profitability witnessed a significant boost from the growth in other income which stood at Rs8bn in 1HFY24 as compared to Rs6.77bn in SPLY.

Meanwhile, PPL's finance cost expanded by 16.07% YoY and stood at Rs853.37m as compared to Rs735.22m in SPLY, mainly due to higher interest rates.

However the sole reason for the rise in profit in 1HFY24 is a 37.72% YoY lower tax payment worth Rs18.28bn against the Rs29.35bn paid in the corresponding period of last year.

Consolidated (un-audited) Financial Results for half year ended 31 December, 2023 (Rupees in '000)
  Dec 23 Dec 22 % Change
Revenue from contracts with customers 151,017,322 138,197,401 9.28%
Operating expenses (25,379,677) (23,843,021) 6.44%
Royalties and other levies (23,759,331) (23,005,494) 3.28%
Gross Profit 101,878,314 91,348,886 11.53%
Exploration expenses (8,742,404) (9,536,133) -8.32%
Administrative expenses (2,237,974) (1,819,557) 23%
Share of loss of associates (1,225,554) (136,449) 798.18%
Other Income 8,001,507 6,768,762 18.21%
Other expenses (8,753,490) (8,042,455) 8.84%
Finance cost (853,365) (735,215) 16.07%
Profit before taxation 88,067,034 77,847,839 13.13%
Taxation (18,278,423) (29,349,151) -37.72%
Net profit 69,788,611 48,498,688 43.90%
Basic earnings/ (loss) per share  25.65 17.82  

Amount in thousand except for EPS

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Posted on: 2024-02-26T11:32:37+05:00