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Pakistan Petroleum posts 20.4% decline in profitability

Company declares cash dividend of PKR 2.0/share

Pakistan Petroleum posts 20.4% decline in profitability
Pakistan Petroleum Limited
Gulf Today

Pakistan Petroleum Limited (PPL) has posted a 20.4% decline in profitability due to decline in hydrocarbon production as well as an appreciating domestic exchange rate.

PPL announced a net profit of PKR 22.7 billion ($81 million) translating into EPS of PKR 8.34 for the quarter ended September 30, 2024, down 24% from the profit of PKR 29.7 billion (EPS: PKR10.94) in the same period last year. The company also declared interim cash dividend of PKR 2.0/share along with results.

Company’s revenue decreased 14.3% due to lower production coupled with lower realized prices. An analyst at Insight Research estimates oil and gas production of the company to have fallen by 11% and 13%, respectively compared with the last year.

This was due to natural depletion of fields alongside administered supply halts amidst line-pack pressure in the domestic distribution network, resulting in downward adjustments to company's hydro- carbon volumes.

Exploration expenses for the quarter amounted to PKR 2.6 billion during the period, up 25%.

PPL recorded higher-than-expected other income, which amounted to PKR 6.5 billion during the quarter, up 67% compared with same period last year.

The increase is likely attributable to sharp upward adjustments in company's cash and short-term investments, which stood at PKR 112 billion.

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