Share price of Pakistan Petroleum Limited (PSX: PPL) has been underperforming the benchmark index, but that's the case with all the listed oil and gas exploration and production companies as low oil prices have continued drag the industry's revenues.

PPL is a key player in the country's oil and gas exploration and production segment. The firm has been in this business for several years, contributing to about one fourth of total gas supplies, besides producing crude oil, condensate and LPG. The firm has majority shareholding of the Government of Pakistan at 67.51 percent, while 7.35 percent is with PPL employee empowerment trust, and 25.14 percent with private investors.

The firm's operates the largest gas field in the country - Sui, along with five other fields namely, Kandhot, Chachar, Hala, Adhi, and Mazarani. It also holds working interest in 12 partner operated fields including Sawan, Qadirpur, Nashpa and Latif. PPL sells its gas to WAPDA, Sui Southern Gas Company, and Sui Northern Gas Pipeline.

Previous performance

Shortage of gas reserves has been a key feature of this gas-heavy E&P company. After a good FY12, gas flows blotted the firm's financial performance in FY13 as the firm faced dwindling gas production, a major contributor to PPL's revenues.