Pakistan Petroleum Limited (PPL), a prominent natural gas supplier in the country, has announced a significant uptick in its profit-after-tax (PAT) for the half-year ended December 31, 2023. The company’s PAT surged by nearly 44%, reaching Rs69.78 billion compared to Rs48.49 billion in the corresponding period last year.
The boost in profits was attributed to increased sales and substantial improvements in the company’s other income from exploration and production activities. PPL’s earnings per share (EPS) also witnessed a notable rise, recording Rs25.65 in 1HFY2024 compared to Rs17.82 in the same period the previous year.
Moreover, PPL’s revenue from customer contracts saw a commendable increase, rising to Rs151.02 billion from Rs138.2 billion in the same period last year, marking a growth of over 9%. The company’s gross profit showed an improvement of nearly 12%, totaling Rs101.88 billion in 2023 compared to Rs91.35 billion in the previous year.
Despite the overall positive performance, there were fluctuations in certain financial aspects. While exportation and administrative expenses witnessed a slight decline, the cost of finance increased by over 16%, attributed to the rise in interest rates during the period.
However, PPL’s other income saw a significant surge, reaching Rs8 billion in 1HFY24 compared to Rs6.77 billion in the corresponding period last year, marking an increase of over 18%. Interestingly, despite the higher profit, the company paid lower taxes amounting to Rs18.3 billion in 1HFY24 compared to Rs29.35 billion in the same period the previous year, reflecting a decline of 38%.
The company’s profit margin stood at 67.5% in 1HFY24, compared to 66.1% in the same period the previous year, showcasing continued financial strength and operational efficiency.
Established in 1950, PPL has been actively involved in the exploration, prospecting, development, and production of oil and natural gas resources in Pakistan, solidifying its position as a key player in the energy sector.
