Pakistan Petroleum (PPL): 4QFY20 EPS at Rs3.98, down 30% YoY (In line with industry consensus)
- Pakistan Petroleum Limited (PPL) reported a 30% YoY decline in consolidated earnings for 4QFY20 to Rs3.98/share, taking full year earnings to Rs18.16/share (down 17% YoY).
- The company also announced a cash dividend of Rs1/share along with the results.
- Earnings decline in the outgoing quarter came on the back of 30% YoY lower Net Sales amidst 11% YoY decline in Natural Gas volumes and 37% decline in Crude Oil offtake.
- Average Oil prices during the quarter also fell by 61% YoY to US$27/bbl.
- Operating expenses during 4QFY20 clocked in at US$5.3/bbl, down by 3% YoY.
- Exploration costs fell by 92% YoY to Rs1.1bn, however, it was still higher than our expectations.
- We believe, PPL has expensed out Miraj 1 of Ghauri Block, where working interest of the company is 35%.
- Other income fell by 71% YoY due to absence of heavy exchange gains.
- Effective taxation for the quarter clocked in at 31% during FY20 compared to 20% in 4QFY19.
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.
Topline Securities is one of the fastest-growing brokerage houses in Pakistan. It has strong Equity Brokerage, Economic/ Equity Research, Commodity Trading and Corporate Finance & Advisory functions.
Topline Securities has been endowed with numerous awards by renowned international financial organizations. The highlights of which consists of the award for ‘Best Local Brokerage House of Pakistan’ by Asiamoney Brokers Poll (the largest Asia-focused equity services provider poll) in 2016 and ‘Best Equity Brokerage House’ by CFA Society Pakistan in 2015.
Previously, Topline Securities held the title for ‘Best Brokerage House’ for 4 consecutive years (2011-2014) by Asiamoney Brokers Poll. Other awards include the ‘Best Salesperson’ award by Asiamoney for 6 consecutive years (2011-2016), the ‘Arabia Fast Growth 500’ award and ‘Pakistan Fast Growth 100’ award in 2012 and 2013 by AllWorld Network.
JCR-VIS, a credit rating agency providing independent rating services in Pakistan has assigned initial rating of “A-2” for short term and “A” for long term to Topline Securities. Topline Securities is registered as Underwriter, Book Runner and Research Entity with Securities & Exchange Commission of Pakistan (SECP).
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