Topline Flash Note: Pakistan Petroleum Limited (PPL): Corporate Briefing Notes
- PPL has a take or pay agreement with GENCOs on 72.5% of the 200mmcfd (or 145mmcfd) gas flows from Kandhkot field. Currently there is no offtake from Kandkhot field since the last 20 days and the company can not sell gas from this field to any other party. The take or pay agreement is also not being implemented. The management is trying to revise the terms of the contract so that the unsold gas can be sold to other parties.
- The overdue receivables of the company have increased to Rs305bn as of today as compared to Rs297bn in Sep-2020. As per the management, recovery ratio has doubled since last year to ~70%.
- Total receivables of the company in FY20 increased to Rs312bn from Rs227bn in FY19. Receivables from SNGP are Rs153bn followed by SSGC at Rs97bn and GENCOs at Rs52bn.
- The company got Rs7bn indirectly from the Energy Sukuk II.
- The company is planning to drill 5 development and 5 exploratory wells in FY21 as against 6 development wells and 2 exploration wells in FY20.
- The government has opened bid rounds for 20 new exploration blocks, where the deadline to submit bids is mid of Jan-2021.
- Results of the Abu Dhabi bid round are awaited.
- In FY21, company plans to complete two projects (1) GPF 4 Phase II and (2) Benari Pipeline. The commissioning of GPF 4 Phase II will augment company’s gas production by 30-35mmcfd.
Dhok Sultan field has a potential to reach 10,000bopd by drilling more development wells. The existing one well delivered maximum flows of 3,800bopd while average flows were 500bopd. This well is not under production right now due to some issues.
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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