Karachi: Pakistan Petroleum Limited (PPL) held a corporate briefing to discuss its financial results for the fiscal year 2026 and the first quarter of fiscal year 2027, highlighting a 9% increase in earnings per share, reaching Rs35.90. The growth is attributed to a rise in net sales driven by increased oil and gas production and favorable oil prices, coupled with a Rs8.1 billion super tax reversal.

According to JS Global, PPL currently operates 21 oil and gas fields and holds interests in 57 exploration blocks. The company drilled seven exploration and appraisal wells and made 11 discoveries in FY26, with a reserve replacement ratio of 102%. PPL's production accounted for 20% of Pakistan’s domestic gas and 18% of its domestic oil supply for the year. The management forecasts an increase in production for FY27, with plans to drill additional wells and invest Rs40 billion in capital expenditures, while aiming to offset natural declines in mature fields.

In a significant development, PPL plans to drill the Sui Deep-3 well in FY28 to extend the Sui gas field's life, although challenges related to depth and pressure may arise. The project involves an estimated $35-40 million in capital expenditure. Additionally, PPL announced progress on the BLZ mining project with commercial production anticipated in three years. The company also addressed super tax reversals and expects future tax rates to stabilize at around 33%, while royalty rates are projected to normalize in subsequent quarters.