KARACHI: Pakistan Petroleum Limited (PPL) has announced that its profit jumped 107 per cent to Rs35.7 billion for the year ended June 30, 2017 translating into earnings per share at Rs18.10 compared to Rs17.2bn earnings and eps at Rs8.74 in the preceding year.
The board of the company also recommended a final cash dividend of Rs6 per share. In addition to the interim dividend of Rs3 per share already paid, the aggregate payout for FY17 amounted to Rs9 per share against dividend at Rs5.75 per share.
Analyst M. Danial Kanani at AKD Securities stated that the sizable surge in earnings was attributable to the incorporation of retrospective impact of Sui field re-pricing with potential impact for FY17 to be Rs4.01 per share. Moreover, higher oil prices and increased gas output specially from Sui/Kandhkot aided in the earnings boost.
The giant oil and gas exploration company earned a profit of Rs63.8bn for the FY17 reflecting eps at Rs14.83, up 6pc over the earlier year’s profit at Rs60.0bn and eps at Rs13.94.
The company also announced a final dividend at Rs2 per share, taking the total payout for FY17 to Rs6 per share, up from aggregate payout at Rs5.20 per share in FY16.
Analyst Mohammad Saad Ali at Intermarket Securities said that in FY17, OGDC’s earnings have risen only 6pc despite 15pc higher oil prices and rise in oil production, partly due to heavy exploration expenses (dry wells and pre-drilling costs borne). Net sales of the company registered increase of 6pc to Rs172bn for FY17, from Rs163bn the previous year.
Analyst thought that the payout could have been higher due to maturity of PIBs held during the quarter, but OGDC may have held back cash for future exploration and potential acquisitions abroad.