September 11, 2020 (MLN): Pakistan Petroleum Limited has declared Profits of Rs. 49.4 billion (EPS: 18.16) for the year ended June 30, 2020, i.e. almost 17% lower as compared to the earnings of last year.
The Board recommended a cash dividend of Rs. 1 per share (10%) on Ordinary Shares and Rs. 1 per share (10%) on Convertible Preference Shares.
The decline in the company’s profitability can be attributed to dip in Sui wellhead price by 3% YoY, decline in the oil and gas production by 12% and 11% respectively especially during lockdown, drop in oil prices by 25%, and PKR depreciation.
According to IGI Securities, the oil production declined due to drop in flows from Nashpa, Adhi and Tal block amid Covid-19 lockdowns, whereas gas production declined on account of lower production from Kandhkot, Qadirpur, Tal Block, Adhi and Nashpa.
The exploration expenses came down by 34% due to absence of dry wells, whereas other income dropped by 58% owing to absence of hefty exchange gains in spite of lower exploration expenses.
The company booked finance charges of Rs. 1.12 billion, which is nearly 43% higher than the previous year due to increase in the policy rate.
Consolidated Financial Results for the year ended June 30, 2020 (Rupees'000) | |||
|---|---|---|---|
Jun-20 | Jun-19 | % Change | |
Revenue from contracts with customers | 157,999,487 | 164,366,020 | -3.9% |
Operating expenses | (43,081,667) | (40,280,249) | 7.0% |
Royalties and other levies | (23,841,674) | (24,374,938) | -2.2% |
Gross profit | 91,076,146 | 99,710,833 | -8.7% |
Exploration expenses | (17,951,507) | (27,206,772) | -34.0% |
Administrative expenses | (3,086,077) | (2,405,425) | 28.3% |
Finance costs | (1,112,584) | (777,372) | 43.1% |
Other charges | (5,865,953) | (7,163,607) | -18.1% |
Other income | 6,582,580 | 15,679,127 | -58.0% |
Profit before taxation | 69,642,605 | 77,836,784 | -10.5% |
Taxation | (20,217,980) | (18,377,394) | 10.0% |
Profit after taxation | 49,424,625 | 59,459,390 | -16.9% |
Earnings per share | 18.16 | 21.85 | -16.9% |
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