Karachi, September 20, 2023 (PPI-OT): Pakistan Petroleum Limited

Earnings: Pakistan Petroleum Limited (PPL) announced it 4QFY23 result. The Company reported 4QFY23 unconsolidated earnings of PKR 16.10bn (EPS PKR 5.92), up by +13.2xy/y compared to PKR 1.22bn (EPS PKR 0.45) in the similar period last year. On quarterly basis, profitability is down by 51%y/y. This brings total FY23 profitability to PKR 97.94bn (EPS PKR 35.99), up by +83%y/y.

Dividend/Payout: The Company announced cash dividend of PKR 1.5/share along with the result bringing total cash payout for FY23 to PKR 2.0/share.

Operating Performance: During the period under review, PPL reported +17%y/y increase in revenue during 4QFY23 on the back of PKR depreciation and higher oil and gas production despite lower oil prices. Exploration cost increased by +12%y/y to PKR 8.68bn during 4QFY23 likely owing to higher prospecting expense and dry well cost. Operating expenses increased by +12%y/y to PKR 12.38bn during 4QFY23 compared to PKR 11.07bn in the same period last year. Other income declined by 29%y/y during 4QFY23 likely owing to exchange loss despite higher interest income. On quarterly basis, earnings dropped by 51%y/y mainly due to lower oil prices, other income and higher tax rate despite PKR depreciation. Effective tax stood at 56.3% during 4QFY23 (3QFY23: 34.8%) compared to 95.8% in the same period last year bringing total effective tax rate for FY23 to 40.9% compared to 49.0% in the corresponding period last year