Nothing excites the media and the retail investors more than news on bonus shares. And this is what happened when PPL announced its 25 percent bonus share issue along with its FY12 financial result earlier this week. While some were positively surprised, for others it was expected on account of the companys acquisition and growth plans. Oil revenues of Pakistan Petroleum Limited gained massively from higher realised international crude oil prices as well as oil production, bringing in flows from Nashpa and Tal. The average realised prices of crude oil during the said period increased by 18 percent YoY basis. Growth in gas revenues however, galloped only on account of 15-16 percent subsequent increase in gas well head prices; production statistics remained stunted with no new flows as well. Signing off FY12 on a jovial note, the bottom line took the hint from the accretion in the top line and expanded by a mammoth 30 percent, clearly in line with the performance of the E&P space in the country. With no debts on its books, PPLs profits during FY12 were also significantly pushed up by almost two folds increase in other income during the outgoing compared to FY11. This growth is in sync with the growth in the companys long term and short term investment and excess cash balance. In short, the companys earnings jumped by 30 percent year-on-year, on the back of trickling down of higher realised prices, increased production from oil fields, a rise in other income and rupee weakening. To beef it up further, PPL also announced final cash divided of Rs6.5 per share, showing that the companys liquidity is sailing smoothly. Going forward, growth in FY12 has set the stage for PPL which aims at an aggressive growth strategy of acquiring MND Pakistan and developing the block acquired in Iraq. Though oil prices plunged in FY12 after their long rising rally, the recent rebound will bode positive for the state owned E&P company. Furthermore, Pakistan Petroleum Limited will also gain from the lag reflection of international crude price change on its uncapped gas well-head prices. Analysts anticipate it to be massive as around 70 to 80 percent of PPLs fields are uncapped.
========================================================= Pakistan Petroleum Limited ========================================================= mn Rs FY12 FY11 YoY ========================================================= Net sales 96,222 78,252 23% Field expenditure 27,051 21,364 27% Royalties 11,471 9,233 24% Operating Profits 57,700 47,655 21% Share of profit in JV 68 56 22% Other operating income 11,594 4,451 161% Other operating expenses 4,654 3,592 30% Finance cost 179 205 -13% Profit before tax 64,529 48,365 33% Tax 23,605 16,919 40% Profit afte tax 40,924 31,446 30% EPS 31.13 23.92 30% Operating margins 60.0% 60.9% Net margins 42.5% 40.2% =========================================================
Source: KSE Noitce
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