PPL’s profit more than doubles in July-December

KARACHI: Pakistan Petroleum Limited’s (PPL) profit more than doubled to Rs22.36 billion translating into earnings per share (EPS) of Rs11.34 for the half-year ended December 31, 2017, a bourse filing said on Tuesday.

PPL posted profit of Rs11.01 billion with EPS of Rs5.58 during the corresponding period of previous year, a company’s notice to Pakistan Stock Exchange (PSX) said.

The company announced an interim cash dividend of Rs4/share on ordinary shares and Rs3/share on convertible preference

share for the year ending 30 June, 2018.

PPL’s profit surged 64.3 percent to Rs9.22 billion for the quarter ended December 31, 2017, translating into EPS of Rs4.68.

The company’s profit amounted to Rs5.6 billion with EPS of Rs2.84 in the same period a year earlier.

“Increase in profitability was led by 15 percent increased oil production, 25 percent higher oil prices and sustaining gas production,” Faizan Ahmed, an analyst at JS Global Capital said.

PPL’s sales revenue stood at Rs28.86 billion during the second quarter, up 35.36 percent year on year.

Analyst Tahir Abbas at Arif Habib Limited said increase in sales could be attributable to growing gas production and oil price hike.

Oil prices averaged $59.81/barrel in 2QFY2018 as compared to $48.07/barrel in 2QFY17, up 24 percent.

PPL’s results remained better than expectations for the quarter despite recent fears of a potential hit from amendments in Power Policy 2012.

Ahmed of JS Global Capital said the management before the result announcement indicated that they were deciding whether to take old pricing regime to avoid paying windfall levy or take the new prices and pay the windfall levy.

“The amendments were subsequently challenged in court and Islamabad High Court directed parties to maintain status quo until the next hearing which is scheduled to be held on March 15,” he added.

The company incurred Rs4.46 billion of exploration expenses during the quarter, which was marginally higher than Rs4.43 billion spent on exploration activities previously.

The company’s other income surged 195 percent to Rs3.32 billion during the second quarter compared with income of Rs1.12 billion in the quarter ended December 31, 2016.

Nishat Chunian’s half-year profit up

Nishat Chunian posted Rs1.96 billion in profit for the half-year ended December 31, 2017, translating into EPS of Rs4.61.

The company recorded Rs1.59 billion in profit with EPS of Rs3.82 in the corresponding period a year ago.

The company did not announce any payout.

Nishat Chunian’s profit climbed 95.8 percent to Rs1.21 billion for the quarter ended December 31, 2017 with EPS of Rs3.31. The company’s profit amounted to Rs617.85 million with EPS of Rs1.26 in the same period a year ago.

Analyst Ahmed Lakhani at JS Global Capital attributed growth in earnings during the quarter to 12 percent rise in the company’s sales and 212 basis points jump in gross margins.

In the second quarter, sales stood at Rs12.63 billion, up 10.49 percent over the corresponding period last year.

“Sales surged due to higher sales of spinning segment and uptick in final product prices,” Arslan Hanif, an analyst at Arif Habib Limited said.

The company’s finance costs grew 24 percent to Rs330 million during the quarter due to increase in borrowing to meet the working capital and capital expenditure requirements.

Nishat Chunian Power’s quarterly profit up 32pc

Nishat Chunian Power Limited posted Rs849.24 million in profit with EPS of Rs2.31 for the quarter ended December 31, 2017, up 31.6 percent over the same period a year earlier, according to a PSX notice.

The company recorded Rs644.98 million in profit with EPS of Rs1.76 in the same period a year ago. The company did not announce any dividend.

Sales amounted to Rs3.7 billion during the second quarter, up 2.99 percent over the corresponding period in the previous year.

Rise in sales is attributed to 22 percent higher furnace oil prices; however the dispatches declined 17 percent during the period.

Nishat Chunian Power posted a profit of Rs1.75 billion, translating into EPS of Rs4.75 for the half-year ended December 31, 2017 compared with profit of Rs1.38 billion and EPS of Rs3.76 in the same period previous year.

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