KARACHI – Pakistan Petroleum Limited (PPL) announced financial results for 3QFY20 reporting earnings of PKR14.7bn (EPS: PKR5.5), up by 42/3% QoQ/YoY, in-line with expectations. On a cumulative basis, the company registered earnings at PKR39.2bn, down 13% YoY.
Revenues for 3QFY20 stood at PKR40.8bn, residing lower by 6% on QoQ basis on the back of flattish production and lower realized oil prices. Average prices of Arab Light hovered at USD54/bbl compared to USD65/bbl, a drop of 19% QoQ.
For 9MFY20, topline increased 6% YoY to PKR126.2bn on the back of weaker PKR parity. Hydrocarbon production stood lower during the period as oil and gas output stood lower by 5% at 14,898bpd and 9% at 786mmcfd on YoY basis, respectively.
Exploration expenses were reported at PKR2.0bn, down 77/55% QoQ/YoY, from lower prospecting expenditure.
Morever, other income from interest on cash balance and investments was noted at PKR1.6bn.
Exchange gain for the period has likely driven other charges to PKR165mn.
Consequently, profitability stood at PKR14.7bn (EPS: PKR5.5) during the quarter, up by 42/3% QoQ/YoY taking total profitability to PKR39.9bn for 9MFY20.
We reiterate our Buy rating on PPL that trades at a forward P/E of 5.0x.
