KARACHI: Pakistan Petroleum Limited’s profit jumped 24.3% to Rs13.8 billion in the quarter ended March 31, 2019 on the back of increase in oil and gas production and depreciation of the rupee against the greenback.
The state-owned oil and gas exploration firm had registered a profit of Rs11.07 billion in the same period of last year, according to a notification sent to the Pakistan Stock Exchange (PSX).
The company reported earnings per share of Rs6.07 in the period under review compared to Rs4.88 last year. PPL’s share price fell 1.42%, or Rs2.45, and closed at Rs169.48 with trading in 679,300 shares at the Pakistan Stock Exchange (PSX).
“Earnings have been backed by PKR/USD parity as average rupee has depreciated 4% quarter-on-quarter and 25% year-on-year in 3QFY19. On the other hand, it has been offset by a drop in the Arab Light crude price by 3% year-on-year in 3QFY19,” stated an AL Habib Research report.
Net sales of the company grew 30.9% in the Jan-Mar 2019 quarter to Rs40.5 billion from Rs30.95 billion in the corresponding period of previous year.
Topline Securities’ analyst Nabeel Khurshid commented, “During the outgoing quarter, PPL’s revenues grew a decent 31%, led mainly by average 20% rupee devaluation against the greenback.” Exploration expenses of the company grew 68% on account of dry well costs, the analyst added.
On the other hand, other income of the company dropped 35.6% to Rs1.36 billion.
In the nine months ended March 31, 2019, PPL’s profit jumped 31.7% to Rs44.03 billion from Rs33.4 billion in the same period of previous year. Meanwhile, sales grew 29.8% to Rs119.6 billion. Other income increased by 16% mainly on the back of rupee depreciation against the US dollar.
“We flag long-term volatility in international oil prices, delay in key projects and significant exploration and development cost as key risks for PPL,” Khurshid added.
Published in The Express Tribune, May 1st, 2019.