By: Azee Securities Private Limited
In our today’s morning report, we have presented the financial result of Pakistan Petroleum Limited (PPL) for the 9MFY15 in detail.
Earning down by 21%: PPL profitability decline by 21% to Rs 29.94 billion (EPS: Rs 15.19) in 9MFY15 compared to PAT of Rs 38.08 billion (EPS: Rs 19.32) primarily due to sharp drop in oil prices, lower production of gas and recognizing impairment loss on its investment in PPL Europe E&P Limited. Similarly, earnings drop by 7.6% QoQ growth to Rs 7.80 billion (EPS: Rs 3.96), from Rs 8.45 billion (EPS: Rs 4.29) in 2QFY15 mainly due to huge decrease in crude oil prices by 32% QoQ and rise in field expenditure on account of increase in seismic acquisition cost.
Net revenues reduces by 9% YoY: Net sales of the company drop by 9% to Rs 80.58 billion from Rs 88.86 billion same period last year due to lower oil prices and decline in gas production. Global crude oil prices fall by 28% YoY to $75.7/barrel against $105.8/barrel in 9MFY14. Oil production surge by 24% to 15.01kbpd compared from 12.11kbpd in 9MFY14 owing to increase in Nashpa, Hala and Adhi fields, and commencement of oil production from Ghauri discovery. While, gas production decreased by 6% to 729 mmcfd against 778 mmcfd registered in 9MFY14 due to drop in production from Sui, Kandhkot, Sawan, Qadirpur, Mazarani, Tal, Gambat, Chachar and Sukhpur fields, which were partially offset by increases in volumes from Nashpa, Latif, Hala and Adhi fields.
Other income hike by 26%: Other operating income surge by 26% to Rs 6.05 billion compared to Rs 34.79 billion in 9MFY14 due to higher investments and exchange gains.