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.

 

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%

Copyright Mettis Link News

Posted on: 2020-09-11T14:21:00+05:00

36850