PPL Profit Down 20% to Rs. 23.6 Billion in Q1 FY25

Pakistan Petroleum Limited (PPL) announced its 1QFY25 result today, where the company recorded earnings of Rs. 23.6 billion (EPS of Rs. 8.67), down 20 percent YoY while up 32 percent QoQ. Along with the results, the company also announced a cash dividend of Rs. 2/share for 1QFY25. Company has declared 1st quarter dividend after 16 years. The last time it was paid was in the September 2008 quarter. The 1QFY25 result came higher than industry expectations due to lower-than-expected exploration expenses. Exploration expense clocked in at Rs. 1.5 billion down 24 percent YoY and 79 percent QoQ in 1QFY25 due to lower seismic activity and no dry well. Net sales fell by 15 percent YoY to Rs. 66 billion in 1QFY25 due to a decline in oil and gas production and lower oil prices. However, net sales increased by 3 percent QoQ due to improvement in production. Royalty expense clocked in at 15.9 percent of sales in 1QFY25 as compared to 16.2 percent in 4QFY24 and 15.9 percent in 1QFY24. Other income jumped by 70 percent YoY and 18 percent QoQ to Rs. 6.4 billion in 1QFY25, driven by an increase in short-term investments amid improved cash recovery. To recall, short-term investments rose from Rs. 80 billion in March 2024 to Rs. 105 billion in June 2024. The effective tax rate stood at 39 percent in 1QFY25, compared to 38 percent in 1QFY24 and 37 percent in 4QFY24.