Pakistan Petroleum Limited (PPL), a key supplier of natural gas in the county, saw its profit-after-tax (PAT) jump nearly 79%, as it clocked in at Rs97.22 billion for the year ended June 30, 2023.

In the same period last year, the exploration and production company saw PAT of Rs54.35 billion.

According to a notice to the Pakistan Stock Exchange (PSX) on Wednesday, the board of directors met on September 20 to review the company’s financial and operational performance and also recommended a cash dividend at the rate of Rs1.5 per share i.e. 15% on convertible preference shares.

Earnings per share (EPS) were recorded at Rs35.73 in FY2023 as compared to EPS of Rs19.98 in the same period last year (SPLY).

“The growth comes on the back of i) 16% YoY hike in wellhead price of Sui, ii) stable oil production while 2% YoY growth in gas production, and iii) 28% YoY Pak Rupee depreciation against greenback,” said Arif Habib Limited (AHL), a brokerage house, in a note.

PPL’s revenue from contracts with customers rose to Rs288.05 billion compared to Rs203.81 billion in SPLY, which is an increase of more than 41%.

The company’s gross profit improved by over 45%, clocking in at Rs191.89 billion in 2023, compared to Rs132.03 billion in SPLY.

On a consolidated basis, the E&P saw a decline in its exportation and administrative expenses on a yearly basis.

However, its cost of finance increased to Rs1.55 billion in the year ended June 30, 2023, as compared to Rs1.29 billion in the same period last year, a jump of nearly 20%.

The higher finance cost during the period could be attributed to the rise in interest rates during the period.

On the other hand, the other income’ saw a significant increase, clocking in at Rs17.4 billion in FY23, compared to Rs14.19 billion in SPLY, an increase of nearly 23%.

PPL was incorporated in Pakistan in 1950 with the main objectives of conducting exploration, prospecting, development and production of oil and natural gas resources.