PPL_2QFY20 EPS:PkR3.71/sh -39%YoY/-30%QoQ, (AKD, Off the Analyst's Desk, Feb 25, 2020)
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PPL: 2QFY20 EPS:PkR3.71/sh -39%YoY/-30%QoQ (Below Expectations) |
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· The E&P firm reported 2QFY20 NPAT of PkR10.1bn (EPS:PkR3.71/sh) -39%YoY/-30%QoQ significantly below our expectations on higher than expected exploration expenses (PkR5.6bn above our estimate) likely chalked up to booking of additional dry well in foreign exploration activities (consolidated exploration expenses PkR1.8bn higher than unconsolidated). · Key features of the earnings read are: 1) modest topline growth of 7%YoY/4%YoY as oil prices receded and indexation factors remained largely mute, 2) margins receding with GM/NM at 57/23% vs. 59/33% during 1QFY19, and 3) other income resting higher by 73%QoQ but remaining -67%YoY. As expected no payout was declared. · 1HFY20 cumulative NPAT now stands at PkR24.4bn (EPS:PkR8.98/sh) down 19%YoY, where margins have now tapered to GM/NM of 60/29% vs. 61/38% during 1HFY19, indicating that PPL’s foreign expansion program may prove to be a burden on profitability over the near term. |
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.
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