October 23, 2020 (MLN): Pakistan Petroleum Limited (PPL) has announced its financial results for the three months ended on September 30, 2020 wherein the bottom-line of the company dropped marginally 0.16% YoY, to Rs 14.32 billion, translating into an EPS of Rs 5.26 when compared with the same period last year in which net profits were recorded at Rs 14.34 billion (EPS: Rs 5.27).
According to the research by AKD securities, the slender decrease in profitability came on the back of erratic realized oil/gas price shifts, stemming from COVID-19 induced supply-demand shocks as benchmarks reverted back to the 40-50/bbl band during 1QFY21) and moderate indexation movements.
As per the financial statement issued by the company to PSX, the company’s revenue went down by 6% YoY to Rs 39 billion which caused gross profit to decrease by 9% YoY to Rs 23.96 billion despite the decrease in the cost of royalties and other levies by around 3% YoY.
The company witnessed subdued exploration expenses, standing at Rs 2.29 billion, down by 36% YoY when compared to three dry wells booked last year. So far, the company has spudded 1 development well in 1QFY21, revealed Pearl Securities research.
More notably, the depreciative impact of drastic monetary easing on the interest income from debt instruments pulled other income down by 19% YoY to Rs 758, AKD said.
On the other hand, the other charges during 1QFY21 plunged by 40% YoY to Rs 2.13 billion against Rs 3.56 billion reported in the same period last year.
Consolidated Financial Results for the Quarter ended 30, 2020 ('000 Rupees) | |||
|---|---|---|---|
| Sep-19 | Sep-19 | % Change |
Revenue from contracts with customers | 39,318,015 | 41,877,740 | -6.11% |
Operating Expenses | (9,404,632) | (9,303,296) | 1.09% |
Royalties and other levies | (5,954,035) | (6,152,342) | -3.22% |
Gross profit | 23,959,348 | 26,422,102 | -9.32% |
Exploration expenses | (2,297,073) | (3,595,139) | -36.11% |
Administrative expenses | (786,219) | (611,648) | 28.54% |
Finance cost | (304,190) | (281,713) | 7.98% |
Other charges | (2,136,846) | (3,567,901) | -40.11% |
Other income | 758,528 | 935,816 | -18.94% |
Profit before taxation | 19,193,548 | 19,301,517 | -0.56% |
Income tax expense | (4,868,599) | (4,953,935) | -1.72% |
Profit after taxation | 14,324,949 | 14,347,582 | -0.16% |
Earnings per share – basic and diluted (Rupees) | 5.26 | 5.27 | -0.19% |
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