LAHORE - Pakistan Petroleum Limited (PPL) has announced its FY12 result, where the company booked profit after tax of Rs 40.9b (EPS: Rs31.13) in FY12 versus earnings of Rs31.4bn (EPS: Rs23.92) in FY11. In 4Q alone, earnings clocked in at Rs6.58/share – down 29 per cent QoQ. The earnings announcement under shot market expectations by ~5 per cent due to higher than anticipated exploration expenditures and a higher effective tax rate of 53 per cent in 4Q. However, the company announced a final cash payout of Rs6.5/share alongside a 25 per cent bonus issue; positively surprising the market.

On a QoQ basis in 4QFY12, net sales declined by 6 per cent on the back of lower international crude oil prices. Moreover, field expenditures increased by 41 per cent QoQ to Rs8.7bn (vs. our expectation of Rs6.3bn). However, an increase of 286 per cent in other income somewhat contained the decline in earnings.