FY15 began on a positive note for Pakistan Petroleum Limited where the chief reason for the E&P giants performance was production.
The E&P sector has witnessed a significant shift in the production portfolio with oil volumes taking the centre stage of late.
Share of oil in PPLs production mix has risen, and along with better realised net selling prices, oil flows have helped PPL propel its revenues.
In 1QFY15, firms revenues took off with 11 percent year-on-year growth, which is expected to have come from the Tal block. Crude oil production grew by around 25 to 27 percent year-on-year, while the gas production is expected to have slid by two three percent year-on-year.
The firms bottom line expanded by 11 percent year-on-year in 1QFY15; the operating margins and net margins were however restricted by 29 percent year-on-year rise in field expenditures. The firm benefitted from lower effective tax rate.
While oil prospects are sanguine, it might not be that pale on the gas front; the firm has made a string of discoveries in company-operated blocks, including gas-condensate from Shahdad X-1 in Gambat South Block and tight gas from Naushahro Firoz Block. And by the end of FY15, some other wells in company-operated Hala and Gambat South blocks will also be flowing gas and condensate.
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PAKISTAN PETROLEUM LIMITED
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Rs (mn) 1QFY15 1QFY14 YoY
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Net sales 30,967 27,782 11%
Field expenditure 8,714 6,760 29%
Royalties 3,686 3,243 14%
Other operating income 2,280 2,162 5%
Other operating expenses 1,035 992 4%
Profit after tax 13,688 12,477 10%
EPS 6.94 6.33 10%
Net margins 44.2% 44.9%
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