Pakistan Petroleum profit after tax for 1HFY23 likely to go up 60%YoY

Pakistan Petroleum (PPL) is also scheduled to hold its Board meeting on Monday. Analysts expect the Company to post profit after tax of PKR49.2 billion (EPS: PKR18.1) for 1HFY23, up by 58%YoY. The company’s topline is set to post its highest ever half-yearly topline, expected to rise to PKR138.7 billion (up 53%YoY), mainly driven by an appreciating US$ dollar (up 31%YoY) alongside higher crude prices (up 28%YoY), which averaged at US$98/bbl during the period, which affects approximately 29% of company’s total revenues. The said growth in the company’s bottom line is attributable to the absence of any substantial dry well during the period. To recall, the company posted PKR11.0 billion in dry well costs in 4QFY22, on account of Khipro East X-1 and Pandrani X-1, taking the exploration expenses to PKR14.1 billion for the period. For 2QFY23 alone, the profitability is expected to settle at PKR22.9 billion (EPS: PkR8.41), down by 13%QoQ, as compared to PKR26.33 billion (EPS: PKR9.70) in the earlier quarter. Overall, production is expected to fall to 9.2 million BOE (down 3%QoQ) amidst lower gas production at Sui/Qadirpur/Kandhkot/TAL during the quarter. Analysts expect the company to incur exploration expenses of PKR2.0 billion for the quarter. Alongside the earnings, analysts expect the company to announce a cash dividend of PKR2.0/share.

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