Pakistan Petroleum Limited drew the curtains to the first quarter of FY13 for the E&P companies. After an amazing FY12, the announcement of 1QFY13 results by the company concluded the period on a positive note.
The top line of the exploration and production company gained eight percent year on year from a combination of prices and production flows. The international crude oil prices remained flattish at around 108 dollars per barrel during 1QFY13 compared to similar period last year, while gas well head prices were relatively higher during the said period.
On the production front, Nashpa and Makori East played a major role in pushing up oil flows, contributing profoundly to the sales growth as gas flows remained stunted during the quarter ended September 30.
The total oil production during the three-month period witnessed an approximately 20 percent year on year rise primarily from Nashpa block. However, some support to gas production came from Adhi and Qadirpur fields amid the strained production flows from fields like Sui, Sawan and Kandhot.
Signing off on a buoyant note, the bottom line took the hint from the accretion in the top line and expanded by a satisfactory 14 percent YoY. PPLs profits during 1QFY13 were also significantly pushed up by 44 percent increase in companys other income to Rs2.3 billion as against Rs1.6 billion last year.
Lastly, the decline in the operating expenses also helped the company in improving its net margin by almost 250 basis points to 46 percent during 1QFY13. In short, the companys earnings jumped by 14 percent YoY on the back of increased oil production, a rise in other income, and restricted expenses to end with.
Overall, 1QFY13 was fair period for the upstream sector. The revenues of the three listed E&P sector players grew by approximately 14 percent YoY during 1QFY13, while the earnings expanded by 12 percent YoY during the same period. OGDC and PPL were the beneficiaries during the period under review, while POL suffered due to its production glitches.
Growth in FY12 had set the stage for PPL. Going forward, the combo of expected increase in gas well head prices and incremental volumes from Makori East and Nashpa joint ventures will be a trigger to the companys growth plans concerning the acquisition of MND Pakistan and development of the block acquired in Iraq.
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PAKISTAN PETROLEUM LIMITED
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Rs (mn) 1QFY13 1QFY12 YoY
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Net sales 24,472 22,647 8%
Other operating income 2,279 1,585 44%
Other operating expenses 880 1,091 -19%
Profit after tax 11,298 9,887 14%
EPS (Rs) 6.88 6.02 14%
Operating margins 63% 63%
Net margins 46% 44%
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Source: KSE Notice
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