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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