Pakistan Petroleum Limited (PPL) announced its financial results for the first quarter of FY25, reporting earnings of Rs. 23.6 billion (EPS: Rs. 8.67). This reflects a 20 percent decline year-on-year but a 32 percent increase compared to the previous quarter.
Alongside the results, the company declared a cash dividend of Rs. 2 per share for 1QFY25. This marks PPL’s first first-quarter dividend in 16 years; the last such payout having been made for the quarter ending September 2008.
The company’s earnings outperformed industry expectations, primarily due to lower-than-anticipated exploration costs. Exploration expenses fell to Rs. 1.5 billion in 1QFY25, down 24 percent YoY and 79 percent QoQ, as there were no dry wells and seismic activity remained limited.
Net sales stood at Rs. 66 billion, reflecting a 15 percent decline YoY owing to weaker oil prices and reduced oil and gas production. However, sales improved 3 percent QoQ on the back of higher production levels. Royalty expenses remained steady at 15.9 percent of sales, compared to 16.2 percent in 4QFY24 and 15.9 percent in 1QFY24.
Other income rose sharply, increasing 70 percent YoY and 18 percent QoQ to Rs. 6.4 billion. The surge was driven by gains from short-term investments and stronger cash recoveries. PPL’s short-term investments grew from Rs. 80 billion in March 2024 to Rs. 105 billion in June 2024.
The company’s effective tax rate came in at 39 percent, slightly higher than 38 percent in 1QFY24 and 37 percent in 4QFY24.
