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)
Revenue from contracts with customers
Royalties and other levies
Profit before taxation
Income tax expense
Profit after taxation
Earnings per share – basic and diluted (Rupees)
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