PPL’s profitability stays flat at Rs 14.32 billion during 1QFY21

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.

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