The Pakistan Petroleum Limited (PPL) earned a profit-after-tax of Rs52.4 billion, the second highest for the company.The company also announced a final cash dividend of 20 per cent on ordinary and 15 per cent on convertible preference shares. This was announced in the 70th annual general meeting of the Pakistan Petroleum Limited (PPL), held online on October 25.
The members approved the financial statements for the fiscal year ended June 30, 2021, together with the auditor’s report.
In his opening remarks, PPL board of directors’ chairman Shahab Rizvi highlighted that despite the global recession, owing to the Covid-9 pandemic, the Pakistan petroleum Limited (PPL) delivered a robust performance during 2020/21.
The board remained fully committed and engaged in governance and oversight of the company’s strategy and operations. He thanked all the stakeholders along with the company’s staff for their perseverance and commitment to deliver in these challenging times.
PPL managing director and chief executive officer Moin Raza Khan said that even though the Covid-19 global pandemic adversely affected businesses, the company has shown remarkable resilience, while operating under the looming shadow of this pandemic for almost two years, by managing to not only deliver uninterrupted energy to the national grid but also achieving a historic milestone of winning an exploration block in Abu Dhabi bid round.
“PPL led a consortium of ‘big four’ national E&P companies’ to secure the country’s first-ever concession in Abu Dhabi, United Arab Emirates,” he added.
“Alhamdulillah, PPL has earned the second highest profit-after-tax in its history. We have also managed to improve collections from our customers, amid aggravating circular debt in the country, through highest-level engagement with them,” Khan said.
PPL’s daily production share stood around 852MMscf gas during 2020/21, a decrease from the previous year due to significantly lower off-take by the Genco-II from Kandhkot. Nonetheless, the company achieved a reserves replacement ratio of 108 per cent with effective field development activities.
The production commenced from Benari X-1, Shah Bandar Block and Hadaf X-1, as well as commissioning of GPF-IV Phase II, Gambat South that collectively added 35MMscfd gas to the supply network.
Besides, PPL drilled seven development wells, three in operated and four in partner-operated fields. The company is geared to enhance its production share through commissioning of Dhok Sultan Oil Handling and Zafir Processing facilities in the near future together with optimising the production from mature fields.
The company’s exploration efforts remained focused on reserve replenishment through exploratory drilling in conventional and frontier areas. Six exploratory wells, three each in operated and partner-operated areas, were drilled.
Besides Balochistan, the company is targeting a new frontier play in Sindh at Khipro East X-1, Khipro East Block. With this, a discovery Mamikhel South-1, was made in partner-operated Tal Block.
Talking about the PPL’s diversification strategy, aimed at de-risking revenue streams against the backdrop of escalating circular debt, Khan said that Baryte, lead and zinc project has made considerable headway and slated to be executed soon through PPL’s mining arm, Bolan Mining Enterprises, a joint venture between PPL and the government of Balochistan.
Besides, the company has submitted an expression of interest for obtaining mining rights in two blocks in Balochistan with an aim at contributing a significant portion of the company’s topline in the long run.
Against the backdrop of the Covid-19 pandemic, the health and safety of staff and contractors remained a priority. Stringent safety protocols were put in place, with alternating work from home and office. PPL also organised vaccination drives for the staff, dependents and contractors, as well as individuals across the country to support government’s efforts through in-house mobile vaccination teams and non-governmental organisations with an estimated reach of over 125,000 individuals.
Khan said that the Pakistan petroleum Limited made the largest-ever annual CSR contribution of over Rs2 billion during 2020/21 to drive the need-based, long-term development projects for deserving communities in operational and urban areas.
The company has also received the top Corporate Philanthropy Award for highest volume of donations for 15 consecutive years.
Moving forward, PPL aims at augmenting its exploration efforts to tap unexplored reserves in frontier/offshore areas and international ventures, as well as proactively pursue opportunities for farm-in/out along with participating in bid rounds to expand exploration acreage both within and outside the country.
PPL will also continue to explore growth prospects in the energy sector, especially midstream oil and gas, as part of its diversification strategy, while expanding industrial scale mining operations in Balochistan, one of the richest mineralised, metallogenic belts in the world.
