Nothing might be too eye-catching about Pakistan Petroleums performance during 1Q FY14, but thats perfectly fine for the oil and gas exploration giant. Overall, the countrys total oil and gas production for 1Q FY14 stood slightly below similar period of last year at around 800 thousand barrels of oil equivalent per day (boepd), of which some 160 thousand boepd were contributed by PPL.
Amid dwindling gas production, the Company witnessed a staggering growth of around 27 percent year on year during the quarter, primarily due to uptick in production from the hydrocarbon heavy Tal Block and Nashpa. And this was the chief reason behind the 14 percent growth in the firms top line and 11 percent growth in the bottom line, over the previous year.
Besides the volumetric growth in oil production flows, stable oil prices and accelerated rupee deprecation of eight to nine percent during the three months also supported the oil PPLs earnings during the quarter.
PPL is one of the most active E&P companies. Drilling, exploration and production prospects are upbeat for the Company; not only is oil production proving more lucrative, the Companys recent finds in gas rich blocks-Hala, Sukhpur and Gambat-will interest in the Company alive.
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PAKISTAN PETROLEUM LIMITED
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Rs (mn) 1QFY14 1QFY13 chg
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Net sales 27,782 24,472 14%
Field expenditure 6,760 6,119 10%
Royalties 3,243 2,925 11%
Other operating income 2,162 2,279 -5%
Other operating expenses 992 880 13%
Finance cost 106 98 8%
Profit after tax 12,477 11,280 11%
Net margins 44.9% 46.1%
EPS (Rs) 6.33 5.72 11%
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Source: KSE Notice
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