Islamabad, Oct 29: 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.
The company also declared a cash dividend of Rs. 2 per share for the first quarter of FY25 in conjunction with the results. After 16 years, the company announced its first quarter dividend. It was last paid for the quarter ending in September 2008.
Because exploratory costs were lower than anticipated, the 1QFY25 result exceeded industry expectations.
Because there was no dry well and less seismic activity, exploration costs in 1QFY25 came to Rs. 1.5 billion, down 24% YoY and 79% QoQ.
In 1QFY25, net sales dropped 15% year over year to Rs. 66 billion as a result of decreased oil prices and a drop in oil and gas output. On the other hand, improved production led to a 3% QoQ increase in net sales. Compared to 16.2 percent in 4QFY24 and 15.9 percent in 1QFY24, royalty expenses amounted to 15.9 percent of sales in 1QFY25.
In 1QFY25, other income increased by 70% YoY and 18% QoQ to Rs. 6.4 billion, mostly due to a rise in short-term investments and better cash recovery. In March 2024, short-term investments were worth Rs. 80 billion; by June 2024, they had grown to Rs. 105 billion.
In 1QFY25, the effective tax rate was 39 percent, while in 1QFY24 and 4QFY24, it was 38 and 37 percent, respectively.
