PPL reports 44% profit surge in first half of FY2024

Pakistan Petroleum Limited (PPL), a leading supplier of natural gas in Pakistan, has reported a substantial 44% increase in its profit-after-tax (PAT) for the first half of the fiscal year 2024, ending December 31, 2023.

The company’s PAT reached Rs69.78 billion, up from Rs48.49 billion in the corresponding period of the previous year.

In a statement to the Pakistan Stock Exchange on Monday, PPL announced that its board of directors had convened on February 26 to evaluate the company’s financial and operational performance.

During the meeting, an interim cash dividend of Rs2.50 per share, amounting to 25% for both ordinary and convertible preference shares for the year ending June 30, 2024, was approved.

The company’s earnings per share (EPS) for the period were Rs25.65, an increase from Rs17.82 in the same period last year.

This growth is attributed to a rise in sales and a significant improvement in other income.

PPL’s consolidated revenue from contracts with customers saw a 9% increase, rising to Rs151.02 billion from Rs138.2 billion in the same period last year.

Similarly, the company’s gross profit increased by nearly 12% to Rs101.88 billion in 2023, up from Rs91.35 billion in the previous year, leading to a profit margin of 67.5% for the first half of FY2024, compared to 66.1% in the same period the previous year.

The exploration and production company reported an 8% yearly decrease in exploration and administrative expenses.

However, its finance cost rose by over 16% to Rs853.37 million in the half-year ended December 31, 2023, from Rs735.22 million in the corresponding period last year, due to an increase in interest rates.

Moreover, PPL’s other income experienced a significant boost, reaching Rs8 billion in the first half of FY2024, an 18% increase from Rs6.77 billion in the same period last year.

Despite the higher profit, the company paid 38% less in taxes, amounting to Rs18.3 billion, compared to Rs29.35 billion in the same period the previous year.

Established in 1950, Pakistan Petroleum Limited is tasked with the exploration, development, and production of oil and natural gas resources in Pakistan.