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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