PPL earns profits of Rs 49.4 billion in FY20

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.

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