PPL reports over 26% YoY decline in net profit

April 29, 2025 (MLN): Pakistan Petroleum Limited (PSX: PPL) reported a 26.40% year-on-year decline in net profit for the nine months ended March 31, 2025, driven by lower revenue and a surge in expenses.

The Board of Directors authorized an interim cash dividend of Rs1 per share (10%) on Ordinary Shares, in addition to the interim cash dividends of Rs4 per share (40%) on Ordinary and Rs3 per share (30%) Convertible Preference Shares already distributed during the year.

The company posted a net profit of Rs71.85 billion [EPS: Rs26.41] compared to Rs97.63bn [EPS: Rs35.88] in the same period last year (SPLY).

Revenue from contracts with customers dropped 14.99% to Rs192.56bn from Rs226.52bn in SPLY.

Despite a 13.76% decline in royalties and other levies, operating expenses increased by 6.72% to Rs41.21bn, leading to a 20.75% drop in gross profit to Rs121.26bn.

Administrative expenses jumped 44.45% to Rs4.95bn, while finance costs surged 54.57% to Rs1.91bn amid rising interest expenses.

Exploration expenses also grew by 5.56% to Rs12.88bn.

Other charges fell 32.58% to Rs9.65bn, but other income also declined significantly by 24.71% to Rs90.37bn.

As a result, profit before taxation was down 16.76% to Rs109.87bn. Taxation expenses rose 10.64% to Rs38.02bn, which further eroded the bottom line.

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