February 26, 2021 (MLN): Pakistan Petroleum Limited (PPL) has disclosed its financial performance for 1HFY21 as per which the company posted a mere 6.79% YoY increase in net profits to Rs 26 billion (EPS: Rs 9.59/sh) as opposed to the profits of Rs 24.4 billion (EPS: 8.98/sh) reported in the corresponding period last year.
Along with the results, the Board of Directors of PPL approved an interim cash dividend for the year ending June 2021 of Rs.1.50 per share (15%) on Ordinary Shares and Rs.1.50 per share (15%) on Convertible Preference Shares.
During the period company observed 11.47% YoY decline in its top-line mainly due to fall in oil and gas production. Resultantly, the gross margin of the company shrank to 56% from 60% in 1HFY20.
On the cost front, the company’s operating expenses jumped by 3% YoY, however, the impact was completely offset by a 22.3% YoY decline on other charges. Moreover, its exploration cost witnessed a sharp decline of 77% YoY as no dry wells reported during the period.
The other income of the company plunged by 26.62% YoY compared to the same period last year on account of exchange loss and lower interest income on deposits amid low-interest rates.
On the tax front, PPL’s effective taxation improved to 24% compared to 25% in a comparative period.
|
Consolidated Financial Results for the Half-year ended December 31, 2020 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Dec-19 |
Dec-19 |
% Change |
|
Revenue from contracts with customers |
75,811,789 |
85,630,629 |
-11.47% |
|
Operating Expenses |
(22,188,119) |
(21,533,587) |
3.04% |
|
Royalties and other levies |
(11,395,129) |
(12,703,060) |
-10.30% |
|
Gross profit |
42,228,541 |
51,393,982 |
-17.83% |
|
Exploration expenses |
(3,269,892) |
(14,263,219) |
-77.07% |
|
Administrative expenses |
(1,788,043) |
(1,331,102) |
34.33% |
|
Finance cost |
(603,338) |
(540,535) |
11.62% |
|
Other charges |
(3,891,212) |
(5,008,753) |
-22.31% |
|
Other income |
1,876,288 |
2,556,801 |
-26.62% |
|
Profit before taxation |
34,552,344 |
32,807,174 |
5.32% |
|
Income tax expense |
(8,446,930) |
(8,362,644) |
1.01% |
|
Profit after taxation |
26,105,414 |
24,444,530 |
6.79% |
|
Earnings per share – basic and diluted (Rupees) |
9.59 |
8.98 |
6.79% |
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