AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: Pakistan Petroleum Limited (PPL) announced a 21% year-over-year decline in its earnings for the third quarter of fiscal year 2025, attributing the decrease to reduced hydrocarbon production and lower average oil prices. The company reported earnings of PkR21.9 billion, equivalent to earnings per share of PkR8.05, aligning with market expectations.
Net sales for the quarter decreased by 15% year-over-year to PkR64.5 billion. This reduction was primarily driven by a decline in hydrocarbon production and a decrease in average oil prices, with Arab light crude oil prices falling to US$78.3 per barrel, a 6.5% drop from the previous year.
PPL’s oil and gas output experienced notable declines, with oil production dropping by 11% and gas production decreasing by 7% compared to the same quarter last year. The company reported production figures of 10,300 barrels per day of oil and 498 million cubic feet per day of gas.
Operating expenses increased by 3% year-over-year to PkR13.6 billion, while exploration expenses totaled PkR5.0 billion. The company awaits further clarity on exploration expenses, as there was no active involvement in drilling exploratory wells during the quarter.
Despite the challenges, PPL’s other income rose by 9% year-over-year to PkR4.3 billion, attributed to higher outstanding cash and short-term investment balances, which reached PkR138 billion as of March 2025.
The effective tax rate for the quarter stood at 37%, consistent with the same quarter last year but higher than the 27% reported in the previous quarter.
In a related announcement, PPL declared an interim cash dividend of PkR1.0 per share, bringing the total cash payout for the first nine months of fiscal year 2025 to PkR5.0 per share, with a payout ratio of 19%.
Analysts from AKD Securities Limited reiterated their ‘BUY’ stance on PPL, setting a target price of PkR286 per share by December 2025. They cited optimism about future exploration prospects, an improving liquidity situation, and interests in the Reko Diq Mining Project and Abu Dhabi Block-5 as factors enhancing the company’s outlook.