The profit of the Pakistan Petroleum Limited (PPL) may show an increase of as much as Rs 6.4 billion, while the profit of the Oil and Gas Development Company (OGDCL) likely to witness a jump of nearly 58 percent. Both companies are expected to announce their financial results for the nine months ended March 31 on Monday through notification to the Karachi Stock Exchange (KSE).
The PPL is expected to announce a net profit of Rs 6.35-6.40 billion (EPS Rs 9.25-9.35) for first 9-month (Jul-Marh) of FY05. It is not possible to give comparative growth numbers as FY04 full year results were first ever to be announced by the company after its formal listing in September 2004.
However, the reasonable growth is expected as during 1HFY05, the earnings of PPL increased by 47 percent to Rs 4.1 billion (EPS Rs5.9), as compared to the same period last year.
PPL's 3QFY05 earnings are expected at Rs 2.30 billion - Rs 2.35 billion (EPS Rs3.35-3.45) despite some production loss in Sui field during the same period. Sui field's gas production declined by 37 percent to 13 billion cubic feet per day during the month of January, compared to average monthly production of 20.7 bcf during 1HFY05 due to attacks on the plant. The Sui field contributes 74 percent to company's gas production and 53 percent to its revenue as per FY04 numbers.
On the positive side, wellhead gas price for Sui and Kandhkot fields (accounting for 86 percent of company's gas volume and 60 percent of its sales revenue as per FY04 numbers) is likely to have risen by 20 percent, starting January 1, 2005. This increase is due to revision under gas price agreement, higher oil prices and the rupee devaluation.
The profits of OGDCL for 9-month are expected to increase by 55-58 percent, to Rs 25.8 billion - Rs 26.2 billion (EPS Rs6.0-6.1) compared to Rs 16.6 billion in the corresponding period last year. For 3QFY05, OGDCL is expected to announce a net profit of Rs 9.9-10.3 billion (EPS Rs2.3-2.4), which means a growth of 44-50 percent from profit numbers for 3QFY04. The record growth in company's earnings is mainly on account of increase in its oil and gas production and higher global oil prices.
During July-Jan FY05, OGDCL's oil production (adjusted for company's stake in non-operating joint-ventures) increased by 25 percent, to 38,000 barrel per day, compared to oil production for the same period last year.
The oil production increase was due to additional production from new discoveries (Chanda and Bobi) and also enhanced production from existing fields. Gas production during Jul-Jan FY05 remained 925 mmcfd, which is a rise of 24 percent. Qadirpur and Uch, which are company's main gas producing fields, continued to operate at the optimum level to meet the higher demand for gas in the winter season. Production from Qadirpur and Uch fields remained at 547 mmcfd and 224 mmcfd, respectively during January 2005.
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