AHL Alert

Oil & Gas Exploration Companies

Pakistan Petroleum Limited September 20, 2023

REP- 300
Result Review: Highest-ever profitability of PKR 35.99/share in FY23
4QFY23: Earnings surge by 13x YoY to PKR 5.92/share Exhibit: Financial Highlights
As per latest financial result announcement, Pakistan Petroleum Limited (PPL) posted a profit after
(PKR mn) FY23a FY22a YoY 4QFY23a 4QFY22a YoY QoQ
tax of PKR 97,937mn (EPS: PKR 35.99) during FY23 compared to PKR 53,546mn (EPS: PKR 19.68)
Net Sales 286,480 202,199 42% 72,305 61,766 17% -6%
in FY22, swelling up by 83% YoY. On a quarterly basis, the bottom-line arrived at PKR 16,103mn
Operating Expense 48,453 40,091 21% 12,379 11,067 12% -2%
(EPS: PKR 5.92), depicting a massive growth of 13x YoY.
Gross Profit 191,549 131,608 46% 48,197 40,671 19% -7%
Result Highlights Exploration Expenses 21,628 23,735 -9% 8,679 13,909 -38% 120%
 Topline during FY23 jumped up by 42% YoY, clocking-in at PKR 286,480mn given i) 16% YoY Other Income 17,539 14,144 24% 2,640 3,740 -29% -68%
hike in Sui wellhead price, and ii) stable oil production while 2% YoY growth in gas production, Profit after taxation 97,937 53,546 83% 16,103 1,217 13x -51%
and iii) a devaluation of the Pak Rupee against the greenback. On a quarterly basis, net sales
EPS (PKR) 35.99 19.68 5.92 0.45
ascended by 17% YoY, settling at PKR 72,305mn in 4QFY23 on account of i) PKR depreciation
DPS (PKR) 2.50 2.00 1.50 0.50
against USD, and iii) increase in Sui wellhead price (up by 14% YoY).
Source (s): Company Financials, AHL Research
 Exploration costs reduced by 9% YoY, settling at PKR 21,628mn in FY23 compared to PKR
23,735mn in FY22 due to lower cost of dry wells during the year. Meanwhile, exploration cost in
4QFY23 declined by 38% YoY, settling at PKR 8,679mn owed to absence of dry wells (Khipro
East X 01 and Pandran X-1 incurred in 4QFY22).
 Other income clocked-in at PKR 17,539mn in FY23 against PKR 14,144mn in SPLY, showcasing
a growth of 24% YoY higher exchange gains during the period. In 4QFY23, other income settled
at PKR 2,640mn, decreasing by 29% YoY. Muhammad Iqbal Jawaid
 The company booked effective taxation at 56% in 4QFY23 vis-à-vis 94% in 4QFY22. The taxation D: +92 21 32462589
during the quarter includes an additional 6% super tax levied on the profit before tax of FY23. UAN: +92 21 111 245 111, Ext: 255
iqbal.jawaid@arifhabibltd.com

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