Karachi: Pakistan Petroleum Limited (PPL) unveiled its financial performance for the fiscal year 2026 during a corporate briefing, highlighting a production increase and strategic plans for future growth. The company reported a rise in production to 649 million cubic feet per day (mmcfd), up from 632 mmcfd in the previous fiscal year, attributed to reduced back pressure from Sui Northern Gas Pipelines Limited (SNGPL) and the cessation of indigenous gas curtailment following geopolitical shifts.
According to JS Global, PPL anticipates further production growth in fiscal year 2027, projecting output to reach approximately 680 mmcfd. This forecast includes contributions from newly developed fields such as Baragzai and Makori East. The Zafir plant is expected to begin operations by December 2026, initially adding 20 mmcfd and eventually increasing to 40 mmcfd. Additionally, the Sujawal gas processing facility is slated for commissioning by June 2027, promising an addition of 16 mmcfd and generating around Rs8 billion in annual revenue.
The company outlined its capital expenditure plans, projecting investments slightly below Rs40 billion for FY27, with a focus on exploration and seismic acquisition. Plans include drilling 10 exploration wells and acquiring extensive seismic data to enhance its resource base. Modifications to the Sui field are set to commence soon, aimed at optimizing recovery from existing reserves, while a high-pressure well, Sui Deep-3, is scheduled for drilling in 2028.
PPL highlighted its ongoing efforts to manage trade debts, which stood at Rs623 billion as of June 2026, with significant amounts owed by SSGC and SNGPL. The government is reportedly working on a settlement plan, though specifics remain undisclosed. Meanwhile, legal proceedings regarding a windfall levy on the Tal block are ongoing. The company also noted increased earnings in FY26, driven by higher revenue and cost efficiencies.
PPL continues to position itself strategically in the energy sector, maintaining a buy stance with a projected dividend yield of 7% for FY27.