Home Business Pakistan Petroleum post PKR 97.9 billion Profit in FY2023, up 83 percent

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Pakistan Petroleum post PKR 97.9 billion Profit in FY2023, up 83 percent

September 25, 2023

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In the latest financial report, Pakistan Petroleum Limited (PPL) announced a robust performance for FY23, achieving a substantial year-on-year (YoY) profit increase of 83%. PPL’s profit after tax reached PKR 97,937 million (earning PKR 35.99 per share), compared to PKR 53,546 million (earning PKR 19.68 per share) in FY22. On a quarterly basis, the company posted a remarkable 13-fold YoY growth, with a bottom-line of PKR 16,103 million (EPS: PKR 5.92).

Key highlights include a 42% YoY increase in FY23’s revenue, reaching PKR 286,480 million, attributed to a 16% YoY rise in Sui wellhead prices, stable oil production, 2% YoY gas production growth, and Pak Rupee depreciation against the USD. In 4QFY23, net sales rose by 17% YoY to PKR 72,305 million, mainly due to PKR depreciation and a 14% YoY increase in Sui wellhead prices.

Exploration costs reduced by 9% YoY to PKR 21,628 million in FY23, thanks to fewer dry wells. In 4QFY23, exploration costs dropped by 38% YoY to PKR 8,679 million, as there were no dry wells like in the same quarter of the previous fiscal year.

Other income for FY23 amounted to PKR 17,539 million, showcasing a 24% YoY growth due to higher exchange gains. However, in 4QFY23, other income decreased by 29% YoY to PKR 2,640 million.

Notably, the company’s effective taxation rate improved from 94% in 4QFY22 to 56% in 4QFY23, including an additional 6% super tax on FY23’s pre-tax profit.

PPL announced a meagre PKR 1.5/Share dividend, against the market expectations.

PKR in Million	FY2023	FY2022	YoY
Net Sales	286.48	202,199	42%
Operating Expense	48.453	40,091	21%
Gross Profit	191,549	131,608	46%
Exploration Expenses	21.628	23.735	-9%
Other Income	17.539	14,144	24%
Profit after taxation	97.937	53,546	83%
EPS (PKR)	35.99	19.68
DPS (PKR)	2.5	2