KARACHI: Pakistan Petroleum Limited (PPL) announced a profit after tax of Rs11.78 billion in the first six months (Jul-Dec) of fiscal year 2015-16, down 47% compared to Rs22.14 billion in the same period of last fiscal year, according to a company notice sent to the Pakistan Stock Exchange (PSX).

Earnings per share (EPS) dropped to Rs5.98 from Rs11.23 in the period under review.

The company posted a profit after tax of Rs5.88 billion (EPS of Rs2.98) in the second quarter (Oct-Dec) of fiscal year 2015-16 (2QFY16), depicting a flat sequential growth despite a 20% quarter on quarter decline in average Arab Light prices.

The company also announced an interim cash dividend of Rs2.25 per share.

On Tuesday, KSE 100-Index closed on 31,673, down 254 points or 0.8% while PPL share closed at Rs117.97, down 0.5%.

The company recorded net sales of Rs20.5 billion in 2QFY16, flat compared to previous quarter mainly on the back of 14% increase in oil production, 7% increase in gas production and stagnant gas prices in the quarter under discussion.

However, wellhead prices are expected to be revised downwards for 2HFY16. The exploration cost clocked in at Rs9.8 billion, down 10% quarter on quarter.

“In our opinion, the lower quarter on quarter (QoQ) seismic activities have contributed in the decline in field expenditure.

On the other hand, the company may have recorded a drywell, namely “Nooriabad X-1” in Jungshahi block, However, we await clarity on the aforementioned drywell,” said Arif Habib Limited Research.

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