Report
EUR 8.70 For Business Accounts Only

PPL: Remains our top-pick despite the bull run

Rallying 18.5% over the past 3 months, PPL is hovering close to our Dec'17 TP of PkR205/sh. Unfolding a number of fundamentals while the oil continues to tread its upward journey ahead of OPEC's meeting, PPL remains our top-pick in the E&P universe. Commissioning of GPF-III and IV at the Gambat South Field along with enhanced output from Kandhkot field post gas supply allocation to Guddu plant emerge as the major positives. Further triggers exist as Nashpa-Mela project (operated by OGDC) comes online by Dec'17 and the company delves into tight gas sands to possibly expand its depleting reserves via the unconventional methods. Incorporating revised prices of TAL block and assuming a 22% success ratio on the exploration front as the company ventures into Balochistan during the ongoing work commitment, our EPS estimates for FY18/19F stand at PkR22.67/25.93/sh with a revised NAV based TP of PkR239/sh.

Underlying
Pakistan Petroleum Ltd.

Pakistan Petroleum Limited (PPL) is a supplier of natural gas. The Company is principally engaged in conducting exploration, prospecting, development and production of oil and natural gas resources. The Company operates nine producing fields, which include Sui, Kandhkot, Adhi, Mazarani, Chachar, Adam, Adam West, Shahdadpur and Shahdadpur West. It has working interests in approximately 20 partner-operated producing fields. Its partner-operated fields include Qadirpur Gas Field, Tal Block, Miano Gas Field and Sawan Gas Field. The Company, along with its subsidiaries, has a portfolio of approximately 40 exploration blocks, of which over 20 are operated by the Company, including Block-8 in Iraq, while approximately 20 blocks consisting of three offshore leases in Pakistan and two onshore concessions in Yemen are operated by joint venture partners. Its gas production from its operated and partner-operated fields is approximately one billion cubic feet of gas per day.

Provider
AKD Securities Limited
AKD Securities Limited

AKD Securities Ltd. is one of the leading securities firm in Pakistan, providing a comprehensive range of investor focused services, including equity brokerage, economic and securities research, investment banking and financial advisory services. AKD Securities accounts for more than 6% of the average daily value of the Karachi Stock Exchange. AKD Securities was the first brokerage house to launch an online trading platform in Pakistan in November 2002 and now has the largest market share with over 6000 customers. This has helped diversify and expand the retail investor base in the country and ushered in a whole new universe of investors to the stock market.

AKD Securities Ltd. caters to a diversified group of domestic and international institutional investors, high net worth individuals and upscale retail clients, including expatriate Pakistanis. With high quality research, unparalleled execution and distribution capability for both regular and large block trades, AKD Securities Ltd. has earned an outstanding reputation in the Pakistani securities industry.Outside of commercial banks, AKD Securities Ltd. is one of the biggest capital market firms in the country. AKD Securities is the leader in raising and providing risk capital in underwriting, market making and mergers and acquisitions in Pakistan. Good corporate governance and professionalism are emphasized throughout the firm and AKD Securities Ltd. is amongst the very few companies to have introduced a firm-wide comprehensive CODE of ETHICS, overseen by an independent compliance manager.Ultimately, our success is based on the quality of service we provide to our customers and the trust and confidence reposed in us by them. Our focus, therefore, remains on customer satisfaction at all levels in the company.

Other Reports on these Companies
Other Reports from AKD Securities Limited

ResearchPool Subscriptions

Get the most out of your insights

Get in touch