AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: Pakistan Petroleum Limited (PPL) has reported a 15% year-on-year decrease in its earnings per share for the first quarter of fiscal year 2026, attributed mainly to reduced hydrocarbon production. The company’s earnings for the quarter amounted to Rs20.08 billion, translating to an EPS of Rs7.38.
Net sales for the quarter were recorded at Rs56.8 billion, reflecting a 14% decline compared to the same period last year. However, there was a 10% increase from the previous quarter, likely due to a rise in crude oil prices, which averaged US$71 per barrel compared to US$69 per barrel in the previous quarter. PPL also saw a sequential increase in oil and gas volumes by 6% and 7%, respectively.
Exploration expenses saw a significant drop to Rs633 million, down 58% from the previous year and 84% from the previous quarter. This decline is attributed to the absence of dry well costs during the period.
Operating expenses for the quarter stood at Rs13.7 billion, marking an 8% year-on-year decrease. This reduction is linked to a decline in hydrocarbon production and sales, as well as curtailments. The operating expenses per barrel of oil equivalent decreased to US$5.05 from US$7.84 in the same quarter last year.
PPL’s other income experienced a 68% year-on-year drop to Rs2 billion, primarily due to lower interest rates. The other income also fell by 57% on a quarter-on-quarter basis, which is likely a result of exchange losses following the appreciation of the Pakistani rupee.
The effective tax rate for the quarter was 35%, compared to 39% in the previous year and 32% in the preceding quarter. Alongside the financial results, PPL announced a cash dividend of Rs2 per share, resulting in a payout ratio of 27%, up from 23% in the previous year.
Despite the mixed financial performance, analysts maintain a positive outlook on PPL, recommending a ‘BUY’ stance as the company trades at a projected price-to-earnings ratio of 7.3x for FY26 and 6.3x for FY27.