Daily Times

Pakistan Petroleum Limited (PPL) saw its profit-after-tax (PAT) jump nearly 19% to clock in at Rs115.48 billion for the fiscal year ended June 30, 2024. In the same period last year, the exploration and production company saw PAT of Rs97.22 billion.

As per the E&P’s latest financial results provided to the Pakistan Stock Exchange (PSX) on Friday, the board of directors met on September 20 to review the company’s financial and operational performance and recommended a final cash dividend of Rs2.50 per share i.e. 25% on ordinary shares.

Earnings per share (EPS) were recorded at Rs42.44 in FY24 as compared to EPS of Rs35.73 in the same period last year (SPLY). The earnings were lower than market expectations, said experts.

Meanwhile, the growth comes on the back of lower taxes paid during the period.

On a consolidated basis, PPL’s revenue from contracts with customers rose to Rs291.24 billion in FY24 compared to Rs288.05 billion in SPLY, which is an increase of more than 1%.

However, the company’s gross profit declined by 1%, clocking in at Rs189.89 billion in FY24, compared to Rs191.89 billion in SPLY amid higher operating expenses and royalties paid.

The E&P saw a decline of 13% in its exportation and administrative expenses in FY24.

However, its cost of finance increased to Rs1.65 billion in FY24, as compared to Rs1.55 billion in the same period last year, a jump of over 6%.

The higher finance cost during the period could be attributed to the rise in interest rates during the period.

The E&Ps paid Rs18.33 billion in other charges in FY24, an increase of 16% on a yearly basis. On the other hand, the other income saw a marginal increase, clocking in at Rs17.5 billion in FY24, compared to Rs17.4 billion in SPLY.

Consequently, PPL posted a profit before tax of Rs160.3 billion in FY24, down from Rs164.9 billion in FY23.

In FY24, the E&P paid taxes to the tune of Rs44.8 billion in FY24, as compared to Rs67.69 billion in SPLY, a decline of 34%.

PPL was incorporated in Pakistan in 1950 with the main objectives of conducting exploration, prospecting, development and production of oil and natural gas resources.