PPL declares marginal decline in net profits to Rs38bn

April 29, 2021 (MLN):  Pakistan Petroleum Limited (PPL) has declared a marginal decline in net profits during 9MFY21 from Rs38.59bn (EPS: Rs14.18) to Rs38bn (EPS: Rs14).

The slight plunge in PPL’s profitability was attributable to lower revenues. However, lower exploration and development expenses and higher dollar indexation provided some relief to profitability.

The Company’s revenues during the period dipped by 10.92% YoY, mainly due to a 19% YoY decline in oil prices and decrease in the company’s oil and gas production by 1% and 3% YoY, respectively amid lower production from major fields namely Adhi, Sui, Nashpa and TAL block.

The exploration expenses of the company tumbled by 76.96% YoY, settling at Rs3.87bn given two dry wells (Zarbab and Nashpa-5A) during the period versus seven dry wells in SPLY.

Among other line items, the Other charges of the company rose significantly by 48% YoY to Rs7.19bn on the back of exchange losses due to rupee appreciation during the period. Other income dropped by 31% YoY from Rs4.2bn to Rs2.9bn PKR1.0bn owing to a fall in income from loans and bank deposits tagged with the absence of a gain on foreign currency accounts.

On the taxation front, the company booked effective taxation at 26% against 28% in the SPLY.

Consolidated Financial Results for the nine months ended March 31, 2021 (‘000 Rupees)
Mar-21Mar-20% Change
Revenue from contracts with customers                   112,718,002                    126,541,766 -10.92%
Operating expenses                   (32,897,478)                   (33,347,459)-1.35%
Royalties and other levies                   (16,756,021)                   (18,917,769)-11.43%
Gross profit                     63,064,503                      74,276,538 -15.09%
Exploration expenses                     (3,871,794)                   (16,803,317)-76.96%
Administrative expenses                     (2,712,243)                     (2,167,769)25.12%
Finance cost                         (884,858)                         (819,476)7.98%
Other charges                     (7,199,888)                     (4,863,973)48.02%
Other income                        2,927,287                        4,258,603-31.26%
Profit before taxation                     51,323,007                      53,880,606 -4.75%
Taxation                   (13,203,986)                   (15,284,693)-13.61%
Profit after taxation                     38,119,021                      38,595,913 -1.24%
Earnings per share – basic and diluted (Rupees)                                14.01                                 14.18 -1.20%

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Posted on: 2021-04-29T17:10:00+05:00