Pakistan Petroleum’s 3rd quarter profits fall amid lower production

Pakistan Petroleum Limited (PPL) posted a net profit of PKR 21.9 billion for the quarter ended March 31, 2025, marking a 21.3% decline from PKR 27.8 billion in the same period last year.

Earnings per share fell to PKR 8.05 from PKR 10.23 year-over-year, the company reported Tuesday.

The company announced an interim cash dividend of PKR 1.0 per share, in addition to the PKR 4.0 interim dividend previously paid to shareholders. Both results and dividend payments came in below market expectations.

Quarterly net sales dropped 14.5% to PKR 64.48 billion, compared with PKR 75.5 billion in the same quarter last year. An analyst at Arif Habib Limited attributed the decline to a 7% and 6% reduction in oil and gas production, respectively, as well as a 6% drop in the price of Arab Light crude.

Over the nine-month period, oil and gas production fell by 9% and 8%, respectively, alongside lower wellhead prices for Sui gas and a decline in overall oil prices.

Exploration costs surged 43.7% to PKR 4.96 billion, up from PKR 3.45 billion a year earlier. Other income increased 10.25% to PKR 4.31 billion, driven by higher returns from cash and cash balances.

The company booked an effective tax rate of 38% for the third quarter of fiscal year 2025. PPL’s trade debts stood at PKR 592 billion as of March 2025, up from PKR 576 billion in December 2024.