Pakistan Petroleum Limited (PPL), one of the top players in the oil and gas exploration and production sector, announced its financial results for the fourth quarter of the financial year that ended June 30th, 2022.
On a year-on-year (YoY) basis, the company posted a profit after tax of Rs. 53.54 billion for FY22, which is 2 percent higher than Rs. 52.43 billion recorded in the corresponding period last year.
According to the company’s financial results, the company’s profit saw a decrease of 94 percent quarter-on-quarter (QoQ) to Rs. 1.217 billion, as compared to Rs. 20.62 billion in the previous quarter.
Along with the result, PPL announced earnings per share (EPS) of Rs. 19.68 for the closed year, up by 2 percent compared to Rs. 19.27 reported last year.
The major deviation in PPL’s earnings came from higher than estimated exploration expenses of Rs. 13.9 billion during the final quarter of FY22.
Net sales of the company increased by 36 percent YoY to Rs. 202.19 billion during FY22 from Rs. 148.429 billion in the same period last year on account of a surge in oil prices by 71 percent YoY due to a revival in oil demand internationally and the depreciation of the Pakistani Rupee by 8.7 percent. In addition to this, the effective tax rate during 4QFY22 was recorded at 94 percent due to super tax expenses.
On a wider scale, gross profits increased by 53 percent YoY to Rs. 131 billion from Rs. 86.29 billion.
Other income clocked in at Rs. 14.14 billion in FY22 against Rs. 4.05 billion in the same period last year, showing a big jump of more than 3x YoY (249 percent). On a QoQ basis, the other income settled at Rs. 3.74 billion, up by 19 percent.
Exploration costs climbed up to 132 percent YoY to Rs. 23.735 billion in FY22 versus Rs. 10.227 billion last year due to a surge in the cost of dry wells during the period. In quarterly terms, exploration costs in 4QFY22 increased by a whopping 873 percent, settling at Rs. 13.909 billion due to high dry well costs coupled with 3D seismic activity during the period.
Source: Pro Pakistan