It’s turning out true that 2017 will be a better year for the oil and gas exploration and production sector. Pakistan Petroleum Limited (PSX: PPL) has announced a whopping increase in its earnings for FY17, single handedly lead by revenue growth.
PPL’s top-line grew by 46 percent year-on-year in FY17, while the earnings increased by more than two times. Finally improved performance stemmed from the natural gas. Always considered gas-heavy E&P firm, PPL celebrated incorporation of retrospective impact of Sui field re-pricing along with improvement in natural gas output from its key fields: Sui and Kandot. Increase in crude oil prices also made their contribution to boost the bottom-line.
Lower finance costs also aided the earnings of FY17. Exploration costs too remained on the lower side despite the firm spudding two and six development wells in Sui and Kandot, respectively in FY17.
PPL declared a final dividend of Rs6 per share in addition to the interim dividend of Rs3 per share, and according to AKD Securities, a significantly higher pay-out could be on account of matured PIBs (in Jul’17) amounting to Rs22.12 billion.
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