PPL’s 1H profit falls 19pc down

KARACHI: Pakistan Petroleum Limited (PPL) on Tuesday said its profit fell 19 percent to Rs24.444 billion for the half year period ended December 31, 2019 translating into EPS of Rs8.98.

The company in a statement said it had earned Rs30.267 billion with an EPS of Rs11.12 in the corresponding period a year earlier.

Analysts at brokerage Arif Habib Limited said the company’s net sales in 2QFY20 depicted an uptick of 8 percent year-on-year to Rs43.651 billion compared to Rs40.594 billion in 2QFY19, due to a 14 percent year-on-year rupee devaluation against dollar.

“However, oil and gas production witnessed a 2 percent and 13 percent year-on-year decline, respectively, tagged with a 6 percent year-on-year drop in oil prices,” the brokerage said.

It added that as a result, the PPL’s 1HFY20’s topline settled at Rs85.410 billion against Rs78.810 billion, up by 8 percent year-on-year.

The exploration expense witnessed a massive surge of 85 percent year-on-year, clocking in at Rs8,878 million, owing to dry well (Noah X-1) reported by PPIS during 2QFY20.

“However, we await clarity regarding the higher than expected exploration expense from the company. Whereas, total exploration expense during 1HFY20 settled at Rs11,742

million, up by 47 percent year-on-year,” the brokerage said.

It further said the company’s other income in 2QFY20 witnessed a huge dip of 68 percent year-on-year, reaching at Rs1.585 million, from Rs4.883 billion, in same period last year, given absence of exchange gain on foreign currency account.

“That said, other income clocked-in at Rs2.467 billion in 1HFY20, down by 64 percent year-on-year,” the brokerage said. The company booked effective taxation at 25 percent in 2QFY20 vis-à-vis 21 percent in 2QFY19.