LAHORE - Pakistan Petroleum Limited (PPL) announced its 1HFY12 result on Tuesday. The company posted a profit after tax of Rs20.1b (EPS: Rs15.3) versus earnings of Rs16.6b (EPS: Rs12.64) in the corresponding period last year, up 21 percent YoY.
The earnings announcement was largely inline with our estimate of Rs15.2/share. In 2Q alone, earnings clocked in at Rs7.78/share – up 16 percent YoY. The cash payout by the company of Rs5/share however fell short of market’s expectations of Rs6-7/share.
The growth in earnings is mainly attributed to 18 percent YoY rise in the company’s top line predominantly led by higher 1) oil and gas production, 2) realized gas wellhead prices and 3) international oil prices during 1HFY12. On the other hand, field expenditures soared to Rs6.5bn (up 16 percent YoY).