Pakistan Petroleum posts 17% profit growth in FY24

Pakistan Petroleum Limited (PPL) has announced a net profit of PKR 114.3 billion (EPS:42.01) for the year ended June 30, 2024, up 17% from the profit of PKR 97.9 billion and EPS of 35.99 in the previous year.

The company also declared a final cash dividend of PKR 2.5/share, which is in addition to interim dividend of PKR 3.5/share taking full year payout to PKR 6.0.

An analyst at Arif Habib Limited said the growth in profit was primarily due to reversal of tax provisions amid favorable judgement from the court related to depletion allowance in second quarter of FY24.

In FY24, net sales increased 1% to PKR 288.8 billion compared to PKR 286.5 billion in the same period last year.

This growth was primarily driven by a 12% depreciation of the Pakistani Rupee against the US Dollar during the period.

However, oil and gas production saw declines of 3% and 13% in FY24, respectively.

Exploration costs decreased by 12% to PKR 19.1 billion in FY24 mainly due to lower costs associated with dry wells.

Other income for FY24 stood at PKR 17 billion, reflecting a 3% decline compared with FY23.

The company reported an effective tax rate of 37% in 4QFY24, a significant decrease from 56% in 4QFY23.