PPL’s earnings jump 44%, clock in at Rs69.8bn in 1HFY24

Pakistan Petroleum Limited (PPL), a key supplier of natural gas in the county, saw its profit-after-tax (PAT) jump nearly 44% to clock in at Rs69.78 billion for the half-year ended December 31, 2023.

In the same period last year, the exploration and production company saw PAT of Rs48.49 billion.

According to a notice to the Pakistan Stock Exchange (PSX) on Monday, the board of directors met on February 26 to review the company’s financial and operational performance and also approved an interim cash dividend of Rs2.50 per share i.e. 25% on ordinary shares and Rs2.50 per share i.e. 25% on convertible preference shares.

Earnings per share (EPS) were recorded at Rs25.65 in 1HFY2024 as compared to EPS of Rs17.82 in the same period last year (SPLY).

The growth comes on the back of increased sales and significant improvement in the E&Ps other income.

On a consolidated basis, PPL’s revenue from contracts with customers rose to Rs151.02 billion compared to Rs138.2 billion in SPLY, which is an increase of more than 9%.

PPL’s profit jumps whopping 79% in FY23

The company’s gross profit improved by nearly 12%, clocking in at Rs101.88 billion in 2023, compared to Rs91.35 billion in SPLY.

As a result, the company’s profit margin stood at 67.5% in 1HF24, as compared to 66.1% in same period previous year

The E&P saw a decline of 8% in its exportation and administrative expenses every year.

However, its cost of finance increased to Rs853.37 million in the half-year ended December 31, 2023, as compared to Rs735.22 million in the same period last year, a jump of over 16%.

The higher finance cost during the period could be attributed to the rise in interest rates during the period.

On the other hand, the other income saw a significant increase, clocking in at Rs8 billion in 1HFY24, compared to Rs6.77 billion in SPLY, an increase of over 18%.

Despite a higher profit, the E&P paid lower taxes to the tune of Rs18.3 billion in 1HFY24, as compared to Rs29.35 billion in SPLY, a decline of 38%.

PPL was incorporated in Pakistan in 1950 with the main objectives of conducting exploration, prospecting, development and production of oil and natural gas resources.