ISLAMABAD: Pakistan Petroleum Limited (PPL) has reported a nearly 24% drop in profit-after-tax (PAT), totaling Rs22.69 billion for the quarter ending September 30, 2024. This marks a decrease from Rs29.76 billion during the same period last year.
The exploration and production company shared its financial results with the Pakistan Stock Exchange (PSX) on Tuesday. During a board meeting on October 29, directors reviewed the company’s financial and operational status and approved an interim cash dividend of Rs2 per share (20% on ordinary shares) and Rs2 per share (20% on convertible preference shares) for the year ending June 30, 2025.
PPL’s earnings per share (EPS) for the first quarter of FY25 were reported at Rs8.34, down from Rs10.94 in the previous year. This decline is attributed to reduced sales and increased operating costs during the period.
Despite a 19% increase in overall earnings to Rs115.5 billion for FY24, the company’s consolidated revenue from contracts fell to Rs66.79 billion in Q1 FY25, down from Rs78.01 billion, reflecting a drop of over 14%. As a result, gross profit declined by 22% to Rs40.93 billion in Q1 FY25, compared to Rs52.79 billion in the same period last year, driven by a 19% rise in operating expenses.
Consequently, PPL’s profit margin decreased to 61.2% in Q1 FY25, down from 67.6% a year earlier. Exploration expenses increased by 25%, while administrative costs surged by 35%. The company incurred Rs4.1 billion in other charges in Q1 FY25, a 7% decrease year-on-year, but other income significantly rose by over 67% to Rs6.49 billion, up from Rs3.88 billion in the same quarter last year.
Ultimately, PPL reported a profit before tax of Rs37.87 billion in Q1 FY25, down from Rs47.72 billion in Q1 FY24. The company paid Rs15.2 billion in taxes during the quarter, compared to Rs17.9 billion the previous year, marking a decline of over 15%.
Founded in Pakistan in 1950, PPL’s primary objectives include exploring, prospecting, developing, and producing oil and natural gas resources.
