PPL’s profit surges by 79% YoY to Rs97bn in FY23, announces Rs1.50 DPS

September 20, 2023 (MLN): Pakistan Petroleum Limited (PSX: PPL) has revealed its financial results for the year ended June 30, 2023, as per which the company posted a profit after tax of Rs97.22bn [EPS: Rs35.72] depicting a surge of 78.87% YoY, compared to  Rs54.35bn [EPS: Rs19.19] profit earned in the same period last year (SPLY).

Along with the FY23 financial results, the board of directors (BoD) of PPL has recommended a cash dividend of Rs1.50 per share (15%) on Ordinary Shares and Rs1.50 per share (15%) on Convertible Preference Shares.

Going by the results, the company's top line marked an increase of 41.33% YoY to Rs288.05bn as compared to Rs203.81bn in SPLY.

With respect to the cost of sales, the operating costs along with Royalties, and other levies rose by 20.91% YoY to 51.12% YoY to Rs49.28bn and Rs46.88bn respectively in FY23.

Despite a significant increase in the company's cost of sales, the gross profit improved by 45.34% YoY to Rs191.9bn in FY23.

On the expense side, the company observed a fall in Exploration expenses by 9.82% YoY and administrative expenses by 14.57% YoY to clock in at Rs22.39bn and Rs3.99bn respectively during the review period.

Conversely, PPL's other charges rose to Rs15.78bn in FY23 compared to Rs13.93bn incurred in SPLY, reflecting a rise of 13.27% YoY. 

The company's profitability was further boosted by the increase in other income as it surged by 22.65% YoY to stand at Rs17.4bn in FY23 as compared to Rs14.19bn in SPLY.

During FY23, the associates of PPL continued to incur losses; however, the share of loss significantly decreased by 73.79% YoY to Rs683.24m in the review period.

The company’s finance costs rose by 19.62% YoY and stood at Rs1.55bn as compared to Rs1.3bn in FY23, mainly due to higher interest rates.

On the tax front, the company paid a higher tax worth Rs67.69bn against the Rs44.58bn paid in the corresponding period of last year, depicting a rise of 51.82% YoY.

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