Pakistan Petroleum Limited (PPL) announced its Financial Results for Nine Months period ending March-2021 where its net profits declined by 1%YoY to PKR. 38billion (EPS: Rs14) compared to PKR38.59billion (EPS: Rs14.18).

The slight decline in PPL’s net profit is due to lower Sales revenue. While, lower exploration and development expenses and higher dollar indexation provided support to company’s profitability.

PPL’s Sales revenues dcelined by ~11%, primarily due to a 19% YoY average decline in crude oil prices and 1% decrease in the company’s oil and gas production, amid lower production from major fields namely Adhi, Sui, Nashpa and TAL block.

The overall exploration expenses of PPL declined by 77% YoY, standing at PKR3.87billion owing to lower level of dry wells (Zarbab and Nashpa-5A) in the period.

The Other expenses of the company increased significantly by 48% YoY to PKR7.19billion due to exchange losses as Rupee appreciated furing the period. While Other income dropped by 31% YoY from PKR4.2billion to PKR2.9billion owing to a fall in income from loans and bank deposits.

Effective taxation also declined to 26% against 28% in the SPLY.

Consolidated Financial Results for the nine months ended March 31, 2021 (‘000 Rupees)
 Pakistan Petroleum LtdMar-21Mar-20% Change
Revenue from contracts with customers                   112,718,002                   126,541,766-11%
Operating expenses                   (32,897,478)                   (33,347,459)-1%
Royalties and other levies                   (16,756,021)                   (18,917,769)-11%
Gross profit                     63,064,503                     74,276,538-15%
Exploration expenses                     (3,871,794)                   (16,803,317)-77%
Finance cost                         (884,858)                         (819,476)8%
Other charges                     (7,199,888)                     (4,863,973)48%
Other income                        2,927,287                        4,258,603-31%
Profit after taxation                     38,119,021                     38,595,913-1%
Earnings per share                                 14.01                                14.18-1%
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